We’ve put a great deal of thought into our Louisville Homes Blog Top 10 Lists and we appreciate all of your compliments along the way. Today, we’ve got another one that we hope you enjoy. We’re covering a topic that many people are contemplating, “When should I sell my home?” Read on!
When is the best time to sell my house?
If you think this is a trick question, you’d be right. There is no single “best” time to sell your home but by understanding 10 key factors that influence home sales, you’ll be ahead of the game.
1. Seasonal Factors
Conventional wisdom says that the best time to sell your home is in the Spring. While it’s true that there are more homebuyers out looking when the weather warms up, that’s only part of the equation.
You’ll also want to consider how many homes are currently available to those buyers. If everyone waited until the Spring to list their homes, the market would be flooded with inventory.
There is, however, one time of the year when selling your home is very difficult—the Holidays. So unless homes are moving quickly and supply is very short, most Realtors® will advise you to wait until after the New Year to list your home.
2. Supply for that Demand
As we mentioned above, the supply of homes currently on the market greatly affects how quickly a house generally sells. It’s especially important to look at those properties that are similar to yours in price and location.
A licensed Realtor, with access to your local Multiple Listing Service (MLS), can be a big help in identifying these properties. You’re much more likely to sell your home quickly if it’s one of only 10 similar houses compared to one of 100 matching properties.
Right now, homes available to purchase, also known as inventory, is at a record low.
3. Traffic Patterns
There are a few times when some competition is a good thing. For example, if your home is in the same subdivision as several other properties that are for sale, but your home is priced more affordably, or your house has some hard to find, yet desirable features, the other properties in your Louisville neighborhood can actually drive traffic to your home.
4. Low-Interest Rates
When interest rates are low, buyers are able to get more for their money, as most homebuyers finance a large portion of the cost of a new home. Most buyers first need to sell their current home before they purchase, which means the number of real estate transactions rises.
Our current rates for a 30-year fixed mortgage are historically low. As recently as 1990 interest rates were in the double-digits. So as long as rates stay at current levels, both buyers and sellers win!
5. Days on Market
One thing all Louisville home sellers would like is a quick sale. Not only is it inconvenient for the seller to spend time cleaning the house for every showing, but it’s also very frustrating as time marches on and you’re waiting for an offer!
Potential buyers who learn that a property hasn’t sold for a long time period often think there is something “wrong” with it, which, in turn, makes it more difficult to sell. There are times when it makes good sense to take a house off the market, make some updates, and possibly lower the price.
Check with your trusted real estate advisor for professional advice.
6. Prime Condition
You only have one chance to make a good first impression. We’ve all heard that before, right?
The same is true of houses. Don’t put your home on the market if there are fix-it projects or upgrades still to be done. Take care of those first, get the marketing prepared, and then launch the listing!
Even though the average time to sell a property in Louisville is currently 11 weeks, all houses receive the bulk of their showings during the first few weeks after the property has been listed.
7. Length of Stay
Each time you buy or sell a home, closing costs factor into the transaction. If you’ve just moved into your current property, another transaction will include another set of closing costs that contribute nothing towards the equity of your property.
The longer you live at any address, the more those closing costs are spread out over a number of years, making it a better investment.
8. Trendy Trends
There are times in a particular real estate market when certain kinds of properties are hot or trendy. Currently, in Louisville, maintenance-free, single-story properties (that must have a first-floor Master Bedroom) are in greater demand as retiring baby boomers are seeking a home that fits them.
You’ll be able to get more money than is typically expected when this describes your home. Whether it is the trend towards open floor plans or away from quad levels the perception of properties rises and falls with popular opinion.
If your Louisville home is currently at one of these peaks, now is actually a great time to sell.
9. Family Matters
Sometimes the best time to sell a house has nothing to do with supply and demand, or house condition or any of the above factors. Sometimes you have to sell your house because a job is forcing you to move to another city.
In these cases, it’s very important to price your property appropriately from the start and then market it aggressively. You may want to move your children to a new school district and you want to be in a new house by the start of a school year.
There are a number of family matters that can also contribute to the best time for your situation.
10. It’s Up to You
While likely self-evident, the best time to sell your house is when you really want to sell! If you’re excited about the opportunity to move, you’ll have more energy to get the house ready for showings and the other tasks that go into a move. When you keep your eyes on the prize at the end of the race, everything goes much more smoothly.