How to pick the best time to sell your home
Category RealADVICE
There is no quick and easy answer to the perennial question "When is the best time to sell my home?" but most homeowners will need professional help to get their timing right, says Gerhard Kotzé, MD of the RealNet estate agency group.
"Generally speaking, spring and autumn are the seasons when South African homebuyers are most active, when demand is most likely to exceed supply, and when homeowners have the best chance of being able to sell their properties quickly and at good prices.
"However, so many other factors come into play in the real estate market that there can be no hard and fast rules. The interest rate cycle is a vital consideration, for example, and the level of confidence in the general economy also plays a significant role in home purchasing decisions and the likely interest of prospective buyers."
These factors then need to be meshed with personal circumstances such as a work transfer or change in the size of a family, or rapid changes to a particular area, which can also play a major part in an individual decision to sell, he says.
"For the home seller who wants to move to a bigger home or a more expensive area, for example, it could be that the best move is to act as fast as possible to secure the new home, even if it means accepting less for their existing property.
"A seller planning to move to a less expensive property, however, might benefit from waiting a while for a market shift.
"And because property sales and purchases are infrequent transactions for most people, it's often difficult for home sellers to get the timing right without the advice of an expert. Consequently, the first thing they should do is to seek guidance from an experienced estate agent familiar with their area, who can provide accurate information about current market and sales trends."
Next, says Kotzé, they need to work through the following questions to determine whether selling would be a good decision for themselves, their families and their finances, and then to plan when to actually list their property:
- Why do you want or need to sell? Perhaps you need to relocate for work, move to a smaller home ahead of retirement, or move to a bigger home to accommodate a growing family. All of these are good reasons to sell, but if you're just considering a "change of scene", selling your home might be a bit drastic.
- Are you emotionally ready to sell? "It's often hard for sellers to detach from their homes because of the associated memories, especially if they have lived there a long time, but that's what needs to happen before you list, or you may well find yourself wavering half-way through the selling process," he says. "You need to be able to think of this as a business transaction and if you can't do that, you may want to delay selling for a while."
- Do you have a plan for selling? One of the most important parts of the selling process is anticipating and planning for all the possible scenarios and outcomes that could arise when putting your property on the market, such as not finding a buyer, or receiving multiple offers, or even receiving a great offer on the first day, says Kotzé. "You need to know what steps will follow if your buyer doesn't get a bond, for example, or if the bank valuation of your property is lower than you thought. Once again, it will be much easier to respond appropriately if you are working with a professional estate agent."
- Are your finances in order? You need to have a strong understanding of your financial position in order to determine a good time to sell, he notes. This will also help you develop a plan for after the sale, and where you plan to live next. "You need to know how much you still owe the bank, for example, and whether you have enough equity in your property to cover the deposit on a new one. You should check your credit score and find out if you will qualify for a new home loan. And you should also ask your agent to list the various fees involved in selling your home before you decide to list now or wait a while."
- Is the market favourable? "Of course, if you have to move for work, you may not have a choice about when to sell," says Kotzé, "but if you do, it really pays to be aware of buyer demand or lack of demand in your area, so that you can pick a period of high demand when your home is likely to sell more easily. Your agent should have this information at their fingertips - and should also be able to help you set a market-related asking price that will ensure a speedy sale without sacrificing any of your equity."
Author: RealNet
