Selling your home is a big decision, one that typically requires lots of thought, analysis, and soul searching. After all, with the purchase of a new home comes a great deal of moving and transition stress. However, for many people delaying the sale of their home can be just as stressful. The home may have positive and happy memories associated with it. It could be that the homeowner is dealing with a divorce, or is perhaps unable to relocate and as a result has decided to rent the property. Below are some things to consider before you leap into the decision.
With the current low inventory and rising home price, right now certainly looks like a good time to sell. But those same market conditions can also work against you. It will be harder to find a new home, and you’ll likely have to pay a hefty price when you do. To help you with this important decision, we offer these 5 ways to determine if you should sell your house right now in East Hanover and Morris County or wait.
1. Interest Rates Are Low
If interest rates are low, you should probably sell your house now, But if not, it might be better to wait.
“Low-interest rates entice more prospective buyers to enter the market, which is advantageous for sellers. An increased number of buyers shopping for homes often leads to bidding wars and drives up home prices, meaning you can likely sell your home for a solid profit.”
Further, if you sell when interest rates are low, you will pay a lot less in interest when you buy your next home. Just be aware that “[l]ow rates can also be a double-edged sword for homeowners, though. They often create a lot of demand since buyers will be looking to take advantage of low rates. This means that you can potentially sell your home at a great profit, but you may struggle to find and purchase a new home after that due to high demand.”
2. Inventory Is Low
When inventory is low, as it is in many markets today, now is a good time to sell your house. A shortage of for-sale homes drives up both demand and home prices, and homes typically sell faster.
In a seller’s market, which is what low inventory creates, “there are fewer houses for sale and more buyers looking to find a home. In this situation, the seller has more negotiating power at the closing table, making a seller’s market a great time to sell your house. If home buyers compete for a smaller number of homes, the seller can often set a higher competitive asking price and compromise less on contingencies and other negotiated terms when finding a buyer for the house.”
But you should also remember that conditions vary from local market to local market, which means that your market may or may not be experiencing low inventory. To find out what’s going on in your market, consult a East Hanover and Morris County agent at (973) 887-2500.
3. You Need to Relocate
If you need to relocate, you should likely sell your house now, but if there’s no pressing need to relocate, then you may be better off waiting.
“If you’re relocating to a new state for a job or want to enjoy your retirement in a new area, and you need the profits from the sale to put toward your next place, selling is unavoidable. The time to sell is when you need to sell . . . It’s a no-brainer to sell if you have somewhere to go, especially in a hot seller’s market.”
If you need to move, especially with time constraints, you should sell your house right now. “There are plenty of reasons you may need to relocate, including moving for a new job, downsizing to a smaller home, buying a larger home to accommodate a growing family, etc. If you have a strong personal reason to sell your current home to purchase a new one elsewhere, you should definitely consider it, especially if that reason is time sensitive.”
4. Your Home’s Value Has Increased Significantly
If your home has significantly increased in value, now may be a good time to sell your house; otherwise, you should probably wait till it does appreciate.
“One great bonus of a strong seller’s market is that your home’s value may have increased with demand. If your home is appraised for a higher value than it held previously, you may want to consider cashing in on your home’s equity by selling. Depending on how much your home has increased in value and how much equity you’ve built in the home, you could stand to make a significant profit by selling while homes are still in demand.”
5. You’ve Found a Good Local Agent
We hope that you found the information above on when to sell your house interesting and helpful. But there’s a complicating catch: not all local markets are the same, and different conditions obtain in different markets. Only if you’ve found a local, experienced East Hanover and Morris County agent to work closely with should you consider selling right away.
If you would like to get more information on the “right time” to sell your house, contact us at (973) 887-2500. Many people are nervous about selling their homes, but you can trust that our team of experts will help you find the best buyer for your property.
