When Is The Best Time To Sell A House

Considerations On When To Sell Your House

There is often confusion among propery owners about when is the best time to sell a house.  The simple answer is, when it suits your circumstances best.  There is no hard and fast rule because everyone's situation is different.  Here are a few guides for you though.

best time to sell a house1. You are looking to upgrade to a bigger (more expensive) home. 

In this circumstance the best time to sell is when the market is depressed or at a low point. 

While it might go against the grain to sell at a price that is lower than you might have achieved a year ago, the dollar difference between the house you are selling and the house you want to buy is smaller.  For example if you are looking to upgrade to a property that is 20% more expensive than your current home, that equates to an additional $100,000 on a $500,000 property, but if prices are down 10% the difference has also dropped to a more affordable $90,000.

In addition if you sell your house before buying, you will be buying in a buyers market with no pressure and are more likely to get a better deal.

2. You have been thinking of selling and noticed another house in your street has just gone on the market.

This could be a good time to put your property on the market as your neighbour is already spending money to bring buyers into your street which will add to the impact of your own marketing.

3. You have an investment property and can see better opportunities for returns elsewhere.

When it comes to investment properties, choosing the best time to sell is a purely financial decision.  It is the right time to sell if your portfolio is over weighted in real estate and you want to diversify or if you want to move to more liquid investments as you approach retirement.

4. You bought an investment property last year but are worried about changes in tax legislation.

This is not a good reason to sell unless you strongly believe that the changes are going to negatively impact the market in the loger term.  Property is not a short term investment.  On the other hand uncertainty often creates opportunities to buy well.

5. A Federal Election Is Approaching

Elections create uncertaincy.  This is especially true of Federal elections where changes to tax laws are often proposed.  In times of uncertaincy their are always less buyers in the market which may depress prices or extend the time it takes to sell a property so this is not usually a great time to put a property on the market.  Immediatly after an election on the other hand there is often a jump in optimism.

In summary, the best time to sell your house, is when the timing suits your plans. There are no hard and fast rules other than that you need to understand your own reasons for selling and talk to an agent that is prepared to focus on your needs and goals.

*Article courtesy of Our Real Estate Mates

 

 

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