By Dian Hymer
Wouldn't it be nice if we had complete control over the future. We would always sell our homes when prices are high and buy when prices are low. Unfortunately, forces beyond our control -- like death, divorce and transfer -- often dictate when we move. But, suppose you do have the luxury of picking the time you sell. When is the most opportune time?
Although each year is unique, there tends to be a seasonal aspect to the home sale market. The largest number of homes change hands during the months of April, May and June. This is the time that most homes look their best. Gardens are in bloom, the weather is generally mild and the days are longer.
The summer months of July and August can be slow for home sales because vacations tend to interfere with home buying. An active fall can follow a slower summer. And homes sales almost always taper off for the holidays after Thanksgiving.
Even more important than the time of year are the supply and demand forces effecting the local real estate market. When buyer demand is high and the supply of homes for sale is low, the seller has an advantage. This is called a seller's market. Conversely, when there are plenty of homes for sale and relatively few buyers, it's a buyer's market. If you have a choice, you're better off selling during a seller's market. This is when you're more likely to get a higher price, with fewer strings attached.
Before listing your home for sale, ask your agent about the supply and demand factors at work in your neighborhood. If there is high demand and few houses on the market, it might be the right time for you to sell even if it's in the dead of winter.
Sellers also have an easier time selling their homes when there is a sense of urgency in the market. Rising home prices can create a sense of urgency. Buyers feel a need to buy now before prices rise further. Rising interest rates can also create the same effect as buyers rush to buy before rates move higher.
First Time Tip: It's usually wise to sell before you absolutely have to. If you wait to sell until it's a dire emergency that you get your home sold, you can put yourself in a compromising position. Yet, this is often what happens. According to the 2000 National Association of Realtors (NAR) "Profile of Home Buyers and Sellers," 24 percent of sellers had to sell their homes quickly because they had already bought another home. Eleven percent said they were in a rush to sell because they either were moving or already had moved out of the area.
Start getting your home ready for sale as soon as you anticipate making a move. This will enable you to get your home on the market quickly when you do decide that the time is right.
Repeat homebuyers often find themselves selling and buying in the same market. In a seller's market, you'll have an advantage selling but you'll be at a disadvantage as a buyer. If you're trading up to a more expensive home, you may be better off making your move during a softer, buyer's market. You'll sell for less than you would during a seller's market, but you'll also pay less for a more expensive house. This could put you dollars ahead.
The Closing: You may be better off trading down from a more expensive home to a less expensive one in a seller's market.
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