When is the best time to sell my home?

If you’ve decided to sell your house the next question you need to ask is “When is the best time?”. This is not an inconsequential decision; If you are selling a car for $5000 and you manage to improve the sale price by 2% you’ve earned an extra $100 but if you’re selling your home for a million dollars that same, small improvement of 2% can mean an extra $20,000 in your pocket!

So is there a best time?

If you’re talking about national sales, the very best time to sell a house is the first half of May. For Los Angeles we can narrow it down ever further. Statistically the best time to sell a house in Southern California is between May 16th and May 31st. According to Zillow, during this time period the sales premium (the increase in sales price over the mean) is $8,100 and a house will sell 9 days faster than the average*.

But remember, this is just a statistical average and every sale is different. I’ve seen houses sell in December for thousands over the asking price.

Seasonality.

But it should come as no surprise that people tend to shop for a new home in the Springtime. In Southern California warmer weather is not as big a factor as it is in other parts of the country but it does play a part.

Looking at new homes is much more enjoyable when the sun is shining and the spring has sprung. And as a lifelong resident I can testify that Californians don’t like to leave home if its cold or raining outside.

People also have tax refunds in hand and the kids are about to break for the summer.

In this part of the world home selling and buying is, largely, a year round activity. The local sales may drop in the winter months but that is often offset by people (coming to their senses and) moving here from the colder parts of the country.

But we’re not the only one’s who know this. The number of homes on the market increases in the Spring and therefor the amount of competition.

Low mortgage rates

If you’re selling a home there are two reasons you should follow mortgage rates closely; First, for your own benefit–you’ll no doubt be looking for another place to live and mortgage rates will have an effect on your own finances. The other reason is that prospective buyers will be searching for favorable rates and the lower mortgage rates go the more people will be enticed into the market. That means the more buyers you will have for your home.

But be mindful that as the economy grows stronger mortgage rates will climb. Rising mortgage rates won’t directly affect home prices, but they can have an indirect impact.

“A slow and steady rise in mortgage rates alone won’t be enough to impact housing prices,” says Adam DeSanctis, national media manager at National Association of Realtors.

But over many years you can see a distinct correlation between falling mortgage rates and higher house prices. [See the entire article on bankrate.com]

Right now the market is cooling off a little

The real estate market in LA has seen record highs over the last 6 years. Right now it’s starting to “normalize” and that offers a few challenges to the prospective seller. This doesn’t mean you shouldn’t sell your home, but it does mean you may have to work a little harder (and a little smarter) to get top dollar.

We’ve discussed ways to improve your odds of selling in other articles (Get your home ready to sell) but I suggest you focus on the following points;

• Make your house stand out. From curb appeal to cleanliness you want your home to look great. Especially when it comes to the photos on the MLS, which is where most people will get their first impression of your home. (And we all know about first impressions) That’s why I always hire a professional photographer to show your home in it’s best light.
• Staging. I recommend staging to all of my customers. It is astounding what a little de-cluttering, rearranging… and a fresh coat of paint can do to improve the look and the desirability of your home. This is an area where hiring a pro is money well spent. A professional stager will help your buyers focus on the best aspects of your home while minimizing it’s weaknesses. But even if you don’t want to pay a professional an afternoon of cleaning and rearranging will make all the difference.

Here are six common mistakes people make when selling their home

• Have realistic expectations. Part of my job is to give you a realistic assessment of your home’s value. That may be less than you had hoped for, and if it is I’m happy to suggest ways you can “up the ante”. However your homes price will depend heavily on comps in your area, it’s state and location.
• Fix big problems. Yes this may mean that you’ll have to invest a little into your home. But it’s not unusual for an owner to invest $5000 on a repair or refurbishment that adds $10,000 or $15,000 to the sale price. But beware, the converse is often true; you can waste money on an improvement that buyers are not particularly interested in.

In conclusion

All of these factors are important when selling your home but the most important factor in the decision is not mentioned here. Is it the right time FOR YOU to sell your home. Are you planning on moving, downsizing, changing jobs?

If we are talking about a home you have lived in for a while, a place where your children grew up then the decision is more than a strategic one, it is also deeply emotional. This article addresses these issues and offers advice about how to deal with these concerns.

*Here is the actual statistic