Check the Market

Check the Market

It's always a good idea to have as much information as possible
when planning something as important as selling a home.

Market conditions will have a major impact on your selling
experience. Understanding what is happening in the marketplace
can help you develop and execute a realistic plan to sell your
home.

Gauge market Conditions

Real estate markets are highly cyclical. The current status of
the market can have a significant effect on your home selling
strategy and the results you are likely to see. Try to develop an
understanding of the state of the market so you have some idea
of what to expect - and a feel for how hard you can bargain
when negotiating with buyers.

What's Best - Hot or Cold Market?

Unless you're planning to rent, you will probably be buying a new
home at the same time as you are selling your old one, so it's
not always easy to decide if a hot market is helpful or harmful.
As a general rule, if you are moving up - looking for a new home
significantly more costly than your old one - you may want to
act during a weak market, when the savings on an expensive
new property will more than outweigh the losses on the older
one. Conversely, empty-nesters looking to switch to a smaller
home may want to plan the move during a hot market, when
they can maximize gains on the larger home to be sold.

When is the Best Time to Sell?

There are two primary sellings seasons - spring and fall. Spring is
the strongest, since many shoppers want to buy and move in
before school begins. Summer and winter are generally very slow
periods in most markets. Some areas have their own seasonality,
however. If, for example, you are selling a home in a seaside
vacation spot, summer is probably a great time to be on the
market.

Understanding Area Sales

Don't listen to anecdotes and stories about bidding wars and
houses being snapped up in one day. There is no substitute for
hard data when you are considering selling your home. Check
out actual sale and closing prices of homes in the area and try
to develop a feel for the true state of the market.