“Wait for the spring market.”
“Don’t miss the spring market.”
“You’ll get a better price during the spring market. “
1. The Spring Market the best time to sell your house.
2. The Spring Market begins in March/ April.
3. You’ll get a better price for your home in The Spring Market.
First, let’s discuss when is the best time of year to sell your home. You’ve heard many people say that they will put their home on the market in the Springtime. Did you ever stop and think that if this is so, then all of these homes are competing with one another in the marketplace at the same time?
There are only so many buyers. Let’s look at it a different way- if there are 10 buyers looking at an area, and there are 200 homes available in that area, the odds are that a homeowner has a 20% chance to sell their home, right? Now take that very same scenario in the Fall when six buyers are looking at 120 homes that are one on the market. That actually indicates that the probability of selling is the same as it is in the springtime.
In fact, selling your home during the fall has always been close to, or nearly the same as selling your the spring market, statistically speaking.
However, there is one extremely important fact that the spring or fall market leaves out, which is… the best time to sell your home is when you are ready.
…and while we are talking about selling seasons, the spring market actually begins in mid-January, and by March 1, its already half over.
So what exactly does getting a better price mean to you? Let’s talk about the relativity of price. I’ll put this into a scenario for you. Let’s say your home is listed at $600,000; you know you would take 590,000 right now, and your mortgage is 3,000 per month. Your home has been listed for 30 days and you get an offer of 575,000. (that’s after going back and forth and back and forth) Well, that deal doesn’t go together, so your home sits on the market, and you finally get another offer 5 months down the road. These people are willing to pay you $585,000 and so you take it. But did you really get more for your house? What do the net numbers say?
For the $575,000 sale we can subtract 3 months of home expenses. (one month being on the market and two months to close), so the final net is $566,000.
For the $585,000 sale we subtract 7 months expenses 564,000.
Yes, they are close but “time value of money” prevails, in this case the $575,000 sale nets you more money in the end. The additional $2,000 in this scenario is not money to be thrown away. Besides that, You might also consider that if interest rates fluctuate just 1/2 of one percent, the difference in money invested over the life of the loan can be very dramatic.
Forget about the seasonality. THE BEST TIME TO SELL YOUR HOME IS WHEN YOU ARE READY.