For a little over a year the housing market has tilted strongly in favor of sellers. Perhaps you’ve considered taking advantage of the current market by listing your home, but still have doubts as to whether now is a good time to sell your home. To help you decide whether to sit tight or sell, we’ll walk you through a few different considerations for each position.
It’s a Good Time to Sell Your Home If:
- You’re not in your forever home
If you’re still living in a “starter home”, now is an excellent time to get top dollar for your property. Starter homes are homes first time buyers can afford, but foresee outgrowing in the future. Often, these homes are condominiums, townhouses, or smaller single-family houses. A starter home meets your current needs, but doesn’t have everything you would dream of for the long term. They also tend to be in the lower range in price for the area.
Currently, there is a lack of starter homes on the market. Low inventory and high demand means buyers will compete and pay more for your starter home, giving you a little extra to put toward your next purchase.
Starter homes are meant to be outgrown. Your need to move may have nothing to do with taking advantage of the market, and everything to do with your changing lifestyle. This is the best test as to whether or not you ought to sell: does your home meet your needs? No matter what the market looks like when you’re personally ready to move, that’s the best time to sell.
2. You want to take advantage of low interest rates and increased equity
Prices on homes are higher, but interest rates are at historic lows. As a seller, this means your next mortgage will have a low interest rate for the life of the loan. However, you also get the benefit of being able to sell your home in a market that favors you price and competition wise. According to the property analytics company, CoreLogic, the median sale price of homes is skyrocketing in southern California, with Orange County having the highest price median. Selling now means you can take advantage of the steep increase in your home’s equity.
3. If you want special contingencies
Since inventory is still low, most homes have multiple offers, and buyers are willing to waive contingencies to compete. If you want to close quickly or have a rent-back agreement, now is a good time to sell. Buyers are apt to agree to a seller’s terms more than ever.
You May Want to Wait If:
- You just refinanced
If you’ve recently made the decision to refinance your home and pull out some of the equity for other investments, or just wanted to lower your monthly payment, now would not be the best time to sell. You want to build up more equity in your home before trying to sell.
2. You don’t have enough saved for your next home
When you sell your home, you also enter the market as a buyer. Current low interest rates help you if you’re in this position. However, if you aren’t able to make the leap to your next home after selling your current one, it’s best to wait until you have more cash saved for your down payment. Low inventory may be a concern, but a good realtor can help you overcome that. What a good realtor cannot help you overcome is a lack of savings.
We Can Help
A seller’s market still has its challenges for sellers. We’re here to help you navigate them well. The deeply held values of The Reed Team include honesty, integrity, hard work, and putting clients’ interests ahead of our own. We represent some of the most experienced agents in the market and have a reliable network of professionals in the industry we can connect you with. If you’re considering selling your home and want to work with the best, reach out to us here or contact us at 949-392-6400.