Tip 6: When is the Right Time to Buy...
When is the Right Time to Sell?
Every home buyer and seller is in a different situation, so it is important you don't compare your timeline and decisions to anyone else's.
Time to Buy?Given all of the drops in the housing market in the last few years, many people are wondering whether now is the right time to buy a new house. Should you snatch up the good deals before prices start to rise or should you wait it out a little bit longer to see if the prices will drop even more? It can be somewhat of a gamble, so it is important to make sure that you know a few facts about the current market so that you can make the best possible decision.
One of the most important facts you should consider when determining whether now is the right time to buy a new house relates not to the market but your own situation. Consider how long you plan to live in the home. While you might not be able to look into a crystal ball and see the future, consider what you know at the moment.You also must consider how comfortable you are with taking risk as well. If you feel comfortable with a possible 10% or even more drop in a home price if you need to re-sell within the next few years then now might be a fine time to make a purchase. If you are not comfortable with risk, then it is probably better to wait and see how the market settles before you make a home purchase.
The reality of the current market is that the fluctuations have not yet stopped. During the year, prices are most likely not going to appreciate at the rate they used to. It is also important to keep in mind that you should not get swept up in the hype that is often presented in media advertisements. While there may be some truth in the media, consumers should be wary about taking this and running with it.
Lending restrictions remain tight throughout much of the country as well. Loans are available for the purchase of a home, but restrictions are much tighter than they were in the past. Make sure you know exactly what is on your credit and how much you will be able to offer for a down payment before you consider purchasing a home in the current market.
One of the most important facts you should consider when determining whether now is the right time to buy a new house relates not to the market but your own situation. Consider how long you plan to live in the home. While you might not be able to look into a crystal ball and see the future, consider what you know at the moment.You also must consider how comfortable you are with taking risk as well. If you feel comfortable with a possible 10% or even more drop in a home price if you need to re-sell within the next few years then now might be a fine time to make a purchase. If you are not comfortable with risk, then it is probably better to wait and see how the market settles before you make a home purchase.
The reality of the current market is that the fluctuations have not yet stopped. During the year, prices are most likely not going to appreciate at the rate they used to. It is also important to keep in mind that you should not get swept up in the hype that is often presented in media advertisements. While there may be some truth in the media, consumers should be wary about taking this and running with it.
Lending restrictions remain tight throughout much of the country as well. Loans are available for the purchase of a home, but restrictions are much tighter than they were in the past. Make sure you know exactly what is on your credit and how much you will be able to offer for a down payment before you consider purchasing a home in the current market.
Also, if you plan to buy a new house in the current market, you should be fully aware that there is the potential for the value of your home to drop over the next few years rather than appreciate. You should not assume that your home will steadily gain value the longer that you own it. This is a gamble that you should be fully aware of before you begin shopping around with the intention of making a home purchase.
While now could very well be an excellent time for you to buy a new home, it is important to consider your own situation as well as how comfortable you are with taking possible risks over such a large purchase in the next few years. The current market certainly is offering good deals in many markets, but before you rush out to grab one, make sure that you are fully informed.
While now could very well be an excellent time for you to buy a new home, it is important to consider your own situation as well as how comfortable you are with taking possible risks over such a large purchase in the next few years. The current market certainly is offering good deals in many markets, but before you rush out to grab one, make sure that you are fully informed.
Time to Sell?Everything has a season – including selling your house. Listing at the right moment could mean more money in your pocket.
Traditionally, spring is the hottest season for real estate. Sales peak in April and May and stay strong in June and July. It’s a good season for families to move, between school terms and while the weather is warm. People have just received their tax refunds, which they can use to help finance a down payment. And the nice weather and beautiful flowers in spring and early summer make it a great time to show your home.
In fact, 60 percent of America's moves take place in the summer. But closing a sale can take weeks, so it’s a good idea to list your home early in the season.
August brings a lag in sales, as people go away on vacation and start to think about the new school year. Then sales surge briefly in the fall before dropping in winter as buyers and sellers focus on the holidays. But by January, buyers are out again, and sales steadily increase into spring.
If you can’t sell in the peak season, consider listing your home in the winter. It may sound counterintuitive, but you probably already have the house decorated and cleaned for holiday entertaining, so it shouldn’t be hard to get it in shape for showing. Moreover, you will have less competition and may get a better price. Another plus: buyers in winter are less likely to waste your time or draw out the closing. They may want to close before the New Year so they can claim the mortgage deduction on their tax return, which you could turn to your advantage in pressing for a quick deal.
Traditionally, spring is the hottest season for real estate. Sales peak in April and May and stay strong in June and July. It’s a good season for families to move, between school terms and while the weather is warm. People have just received their tax refunds, which they can use to help finance a down payment. And the nice weather and beautiful flowers in spring and early summer make it a great time to show your home.
In fact, 60 percent of America's moves take place in the summer. But closing a sale can take weeks, so it’s a good idea to list your home early in the season.
August brings a lag in sales, as people go away on vacation and start to think about the new school year. Then sales surge briefly in the fall before dropping in winter as buyers and sellers focus on the holidays. But by January, buyers are out again, and sales steadily increase into spring.
If you can’t sell in the peak season, consider listing your home in the winter. It may sound counterintuitive, but you probably already have the house decorated and cleaned for holiday entertaining, so it shouldn’t be hard to get it in shape for showing. Moreover, you will have less competition and may get a better price. Another plus: buyers in winter are less likely to waste your time or draw out the closing. They may want to close before the New Year so they can claim the mortgage deduction on their tax return, which you could turn to your advantage in pressing for a quick deal.
Of course, selling in the hot season isn’t the whole story. You should pay attention to your local housing market and try to list during a seller’s market, when there will be more competition among buyers for your home – which could mean a better price, a quicker closing and fewer conditions on the offer.
Find a Realtor who you like and trust, one with the knowledge and experience in your local housing market. If you have questions or comments, please let me know...
Next...Tip 7: Family & Friends Opinions
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