The ability to sell a home within a few weeks or months is determined by several variables. Some factors are hard to clue into, but the market conditions play the biggest role in your house’s turnover time on the market. In an attempt to ensure that both the buyer and the seller close a house deal without losses, strive to buy or sell a house in the best season possible. Read on to know what to look for when you’re buying or selling and what the best seasons are for both.
What to Look for When You’re Buying or Selling
- Interest rates. The prevailing interest rates in the market are always a force to reckon with. A buyer will always want to strike a deal when the interest rates are very low so that they can have a good lock-rate deal. On the other hand, a seller markets their house most when the interest rates are high in order to make larger gains.
- Demand and supply. The higher the demand for homes, the higher the price. Sellers will bump up their house price and buyers won’t get nearly as good of a deal. On the other hand, a high supply means lower house prices and buyers will get better deals.
The Best Season to Sell a Home
Perhaps the real estate market has indicated signs of progress and the value of homes is rising steadily! If you own a house, then you might be tempted to sell right away. But is this when you can set the best price? Not necessarily! The best price for your house will entirely depend on the time when you sell it.
The new year is always ushered in by winter—the most difficult time to sell a house. The real estate market is always slow with some buyers returning to the market after a long holiday break. So instead of selling, this time is the best for building/renovating a new home or improving your existing home. It’s best to wait to put your house on the market until May or so- this has been established as the best time to sell.
Why You Should Sell Your Home in Spring
- Great weather. Most buyers prefer to stay in their houses during winter. People are often caught up with holidays during the first part of the season. But the situation takes a U-turn in spring as buyers rush to buy homes so they can settle in over the summer while kids are out of school.
- A buying hustle and bustle. As the snow melts away in spring, many buyers are more willing to drive out to see a house. As buyers hunt for houses during this time, real estate agents begin to advertise houses heavily. This creates a bidding atmosphere with some buyers quoting more than the seller’s asking price. This means more profit for the seller.
- Low inventory. Spring is always a time when demand exceeds the supply. This means that there are fewer homes for the buyers to choose from. A potential seller with a quality house will definitely stand out from the crowd.
- Rising prices. Owing to the low inventory of houses on the market, the forces of demand and supply dictate that buyers don’t have an option but to accept buying at the ruling price. The prices can get even higher as buyers outdo one another through competitive bidding.
- Low mortgage rates. Spring is always characterized by the lowest mortgage interest rates. As real estate experts and economists generally agree, this is the best time to sell a home because buyers are anxious to purchase during this season.
Buyers, on the other hand, are always looking for convenience and low market prices when purchasing a home. If summer is approaching and you haven’t bought a house then you shouldn’t be in a hurry as you may want to wait for a better buying season. Winter has been established as the best time to buy a home for several reasons.
Why You Should Buy A Home In Winter
- Desperate sellers. With many people holed up in their houses, on vacation, and focusing on holidays, the real estate market is very dormant during winter. Since house-hunting rates are low, many sellers are desperate to close a sale. This desperation cushioned with low demand from buyers means that you can land a lucrative home deal with a low price offer.
- Few buyers. There are much fewer buyers in winter compared to the number of spring buyers. This means that there is often no bidding war for buyers. A house will most likely cost less during the winter season.
- Low moving costs. The relocation expense is not usually factored by many buyers but it can be quite high. Movers ask a low price during winter because there are fewer people moving. So relocation costs in winter will be much lower than your cost during spring or summer.
- Making school transitions. If you have children, then the best time to buy a home is winter. This season favors the school calendar because they can comfortably move to new schools and start again in the new year.
While you can buy or sell a house anytime, if you are looking to get the most out of your money you should seriously consider these seasons. These factors also vary from one state to the other in conjunction with the law. But before you opt to buy or sell a home, you must know what you expect and the driving force behind your decision. To make an informed decision as a buyer, be sure to read “How Much Home Can I Afford?” and take a look at our list of the “Top 10 Lenders for First Time Home Buyers”.