Are you wondering whether now is the right time to sell your home?
There are 3 important questions to consider:
1) How much money will you make?
2) Is this the right market?
3) Is it the right time of year?
Stay tuned. I’m breaking it all down for you.
HOW MUCH MONEY WILL YOU MAKE?
Let’s start with the single most important factor in the entire equation, how much money will you make?
The only way to know how much you will make from the sale of your home is to consult with a local realtor and have them provide an estimated net sheet which includes the price your home will sell for and all the fees associated with the sale.
If you’re in LA, Orange, Riverside, or San Bernardino County you can use links below in the caption to request a net sheet from me or get an instant report of value online.
IS IT THE RIGHT MARKET?
If the proceeds from the sale make sense for you, the next question to consider is whether it’s the right market. Most often, when we as sellers ask, “is it the right time to sell?” what we really want to know is “can I get more for my home if I wait?”
This is called “timing the market.” I’ll let you in on a little secret: it’s not an effective strategy.
- The market is IMPOSSIBLE to predict
- There are pros and cons in every market
Let’s talk about those pros and cons
A seller’s market happens when prices are increasing, homes are selling quickly, and there are more buyers looking for home than there are homes for sale. When this happens sellers have the negotiating power because they have plenty of buyers to choose from, so if one doesn’t work out, they can move on to the next.
Wow! This sounds amazing, right? Why wouldn’t you sell in a seller’s market? There really isn’t a reason not to.
But here are two common hesitations I see from seller’s in a sellers market: Number ONE
If the homeowner is selling in order to buy another home, then they might be tempted to wait until prices come down so they can get a deal on their replacement home. The problem with this logic is that if you wait for prices to come down, then you’ll be selling your home for less, giving you less money to buy your next home
If you are in a seller’s market, prices are increasing, so the longer you wait to buy your replacement home, the more it will cost you
The other hesitation I see is whether to sell NOW in this phase of a sellers market or wait for prices to increase even more.
This is a very personal calculation. We all want to maximize the profits of our investment, and waiting might in fact net you more. But, the opposite can also be true. When the real estate market shifts, it tends to be swift. By the time we realize it’s turned into a buyers market, we have already missed out on peak values. Ask yourself this question: am I happy with what I am making today? Would I be devasted if I wait and make less?
A buyer’s market happens when prices are plateauing or declining, homes are taking a long time to sell, and there are more homes to choose from than there are buyers looking to buy them. When this happens buyers have the negotiating power because they have plenty of homes to choose from. If one doesn’t work out, they can move on to the next. This doesn’t sound ideal, right? Why would you sell when buyers are calling the shots? Ideally, you wouldn’t. But, if you are in financial strains and want to get rid of the debt you have on your home before prices dip even further, then it might make sense. The other reason would be to take advantage of declining prices to buy a replacement home.
IS IT THE RIGHT TIME OF YEAR
The final consideration is the time of year. Have you ever heard “it’s the Spring buying season” or “wait until Spring”
The hype around Spring is a whole vibe for sure. But, it doesn’t matter as much in Southern California as it does in other parts of the country. If buyers have to shovel snow to make it out of their drive way, yes, they are likely to wait until Spring to go home shopping. Here in SoCal with our mild weather year round, it’s not as relevant. The Spring market does tend to
have more buyers looking for homes, BUT there are also more homes on the market which you’ll be competing against you for those buyer dollars.
In Winter and Fall you’ll be competing against fewer homes and have access to highly motivated buyers. Only highly motivated buyers stay active during this “off season” so you’ll be in company of folks who are ready to make a deal.
My personal opinion? All seasons are good seasons to sell in SoCal. The tiny advantages from one season to the next are not worth waiting for IF everything else is a green light for you.
Bottom line, if you’re happy with the amount you are netting AND you’re in a seller’s market, YES it’s the right time to sell.
At the time of this recording it is Spring 2023
We are still in a sellers market. There are more buyers looking for homes than there are homes for sale. Despite what news headlines would have us believe, homes are still selling at list price in under 30 days in most neighborhoods in SoCal. This Spring Season has the added benefit of a temporary dip in interest rates which will increase affordability for buyers and the launch of new assistance programs to help first time buyers achieve home ownership. These conditions combined make it a great time to sell your home.
We talked a lot about timing, but are wondering what your home is worth?
Click on the links below for an instant report of value or an in-person evaluation.
I’m Melissa Urena, Long Beach local and SoCal Realtor.
I specialize in helping homeowners like you upgrade from first home to forever home.
For more tips on buying and selling, make sure to follow and subscribe to my YouTube Channel.
Watch the full video of today’s blog post here