Is this a Good Time to be Selling My Home?
Considering the heat wave that has hit us in late October it's a little hard to believe that the holiday season and LA winter are right around the corner. And as happens most years there are some home owners who are inclined to put off the decluttering, painting, agent interviews and other prep work because they believe that if they wait until next Spring, well the timing is better.
But you can't always time the Real Estate market. Somewhat similar to the stock market in that regard.
There are pros and cons when choosing to sell your home and there are many factors that need to be taken into consideration before deciding when that For Sale sign goes up. Many homeowners believe selling a home during the fall or winter months is not a good idea and that the spring is the only time a house should be sold. This is the furthest from the truth. Certainly most real estate markets across the United States experience a "spring market rush" every year and Redondo Beach is no exception.
Here are several reasons why choosing to sell your home now may be a better decision than waiting until the spring:
Less CompetitionAs of this writing there are only 39 active listings in 90278. That's not even enough to satisfy the current monthly demand. Wouldn't it be nice to be the only choice in your price range or property type?
If you wait until next spring, then in all likelihood there will be For Sale signs up all over the place. One great reason to sell your home now and not wait until the spring market is there is sure to be less competition. The fewer number of comparable homes for sale, the greater the probability that a buyer will not only look at your home, but make an offer. And multiple offers is the way we can max out the price point and get better terms.
This is simple supply and demand theory.
Serious Buyers Are Out ThereHomes are sold and bought 365 days a year. Even during the slowest months, the difference in transactions may vary by less than 20%. In fact, 4 out of the last 5 years, the busiest month in my Real Estate practice has been December.
Many homeowners believe that buyers aren't out there during the fall and winter months. This simply is not the case. Serious buyers are always out looking. Or rather looking on the internet first. Some buyers may stop their home search because it is the fall or winter, but serious buyers will continue to look at homes, no matter what time of year it is.
The fall and winter months are also a great time for a potential buyer to see what a specific neighborhood is like. Do your neighbors have pumpkins on their front step? Are there lots of Trick-or-Treaters wandering the neighborhood on Halloween? Do any of your neighbors have any light displays for the holidays? There are buyers out there who will look at these types of things when determining whether your home is in the right neighborhood for them or not.
Staging For The Holiday SeasonMany sellers believe staging a home is the main reason a home sells. While staging certainly helps sell homes, some buyers have a difficult time envisioning themselves in a home no matter what you do. However, there are some buyers who can easily be "sold" on a home because it is staged. Simple “seasonal” staging such as adjusting the color of the decor or having an aroma in the air that is relative to the time of year can go a long way with some potential buyers and possibly be the difference between a home selling or not.
Mortgage Rates Are LowIf you've read about real estate in the past year, it's likely you've read that the mortgage rates are very low. You also probably read that there is an expectation that the rates will increase very soon. Since mortgage rates are so low right now, buyers are able to afford more expensive homes. If mortgage rates increase over the fall and winter months while you're waiting for the spring market, it could cost you thousands of dollars as it could eliminate many buyers from the market. Less demand for your home will mean less money. Be smart and take advantage of selling your home while the rates are this low.
Quicker TransactionsRight now, there are fewer real estate transactions than there will be in the spring. The fewer number of transactions means the mortgage lenders have less loans to process, attorneys have less closings to do, and home inspectors have fewer inspections to do. All of these factors should lead to a quicker transaction and closing for all the parties involved. One of the most frustrating things for a seller to deal with while selling their home is not getting answers in a reasonable amount of time. A quicker transaction is going to be less stress for you.
The Bottom LineThere's a few comments I always share with my clients that goes something like this.
- "All we ever know in Real Estate is what we know today.
- "If the home you are in will not work for you long term, the timing couldn't be better than to sell now."
Let's look at these.
To start with, both Buyers and Sellers tend to look at the trend line of which way the market is moving and extrapolate that it will continue in that direction indefinitely. So, if we currently are in a Seller's Market, home owners thinking of selling tend to assume that the current market will continue going up indefinitely. But we all know that isn't likely as a) either we hit a tipping point causing a change of direction or b) there is an external event that changes the dynamic of the market.
And finally, if the home you are in just won't address your needs - what are you waiting for? Its time to Sell.