Should I Sell My House Now, or Should I Wait?

Are you among the many homeowners who are wondering, should I sell my house now, or wait? Well, the decision to sell your home is a major one. And, it requires careful consideration, including your reason to sell, financial goals, and the favorability of the real estate market.

If selling your house is on your mind, it’s crucial to grasp the present dynamics of the real estate market. The turbulence that characterized the market during the pandemic is gradually subsiding. Though, this doesn’t imply that there are no obstacles for home sellers.

For instance, the high mortgage interest rates in recent times, which were recorded at 6.88 percent around mid-July are causing mortgage payments to become more expensive. As a result, a significant number of potential home buyers are delaying their plans to buy a house. Such a scenario is not suitable if you’re looking to sell your property.

Fortunately for the seller, according to the National Association of Realtors (NAR), the U.S. housing market today is very much a seller’s market. This is mainly due to the high home prices and a low housing inventory.

Is now the right time to sell my house?

Putting your home on the market is a personal decision – it depends on your financial situation as well as your lifestyle. According to Fannie Mae’s Home Purchase Sentiment Index, 62 percent of respondents agree that it’s a good time to sell your property. The reason is that the housing demand has gone up and the housing inventory is still low.

Real estate experts feel that local market dynamics play a huge role in deciding whether it’s a good or bad time to sell. For example, in neighborhoods where home prices are increasing, selling could be a good idea. And, waiting it out would be beneficial in markets where sale prices are falling fast. The seller would benefit from waiting until the market correction stops, the interest rates decrease, and home sales are once again up. For example, cities such as San Francisco, Seattle, and Austin that saw a sudden surge in home prices are witnessing a year-over-year decline.

If you do decide to list your home, the first step is to hire an experienced real estate agent who knows the market and the neighborhood well.

Should I sell my house now? Is this the best time to sell?

Here are a few considerations to help you decide whether to sell or not. If you witness any of the following trends, know that the time is right.

When interest rates are low

Reduced mortgage interest rates essentially translate to increased savings when financing a home. These lower rates tend to stimulate significant demand as buyers seek to capitalize on favorable financial conditions. However, if you’re looking to sell your home in a bid to buy another, it might be challenging to find a new home within your budget due to the heightened demand.

If purchasing a house is not a concern, this could be an opportune time to put your property on the market.

If the housing supply is low

In a buyer’s market compared to a seller’s market, the number of houses available for sale surpasses the number of potential buyers. This gives greater bargaining leverage to the homebuyer. Conversely, in a seller’s market, there are fewer homes up for sale and a higher number of eager buyers in search of a home. In this scenario, the seller holds more sway during negotiations and manages a competitive asking price. Needless to say, a seller’s market is an optimal time to sell a house.

Having said that, the housing market today is not as competitive as it was in 2021. Back then, buyers were ready to buy as-is properties, many times even without a thorough home inspection. Today, as the market has cooled down a little, buyers are taking their time to decide.

When you have to relocate to a new neighborhood or city

Many times, homeowners choose to sell their existing property when they have to move due to job commitments or urgent family situations.

Various factors can trigger the necessity for relocation, such as pursuing a new job opportunity, downsizing to a more compact residence, or procuring a larger home to accommodate a growing family. If any of these situations exist, chances are you’ll be pressed for time to find a buyer for your house – regardless of the market forces.

If there has been a surge in your home value

A major advantage of a seller’s market is the potential increase in your home’s value due to high demand. If your home’s appraisal reveals a higher value compared to its previous assessment, it might be worth considering capitalizing on the gained equity by selling. Depending on the equity in your home, selling while demand is high could result in a substantial profit.

If you’re not yet prepared to sell but are looking for additional funds, you could leverage the value of your home and opt for a cash-out refinance while retaining ownership of your home.

When is the best time to wait?

Why is my house not selling in a hot market

There are situations when it’s best to wait before putting your home on the market.

If you do not have good home equity

As you gradually repay your mortgage, you accumulate an ownership stake or equity in your home. When you decide to sell your home, the proceeds from the sale generally go toward covering the outstanding mortgage balance as well as closing costs. The remaining funds become your profit from the sale.

If there’s not sufficient home equity, the sale will merely cover your expenses. The outstanding loan balance on your property may surpass its actual market value. In such a case, selling your house might require a substantial out-of-pocket contribution to finalize the transaction. According to experts, it’s generally advisable to remain in a home for approximately 5 years to recover your costs before considering a sale.

If the housing supply is high

If there are more homes than there are buyers, you should consider waiting to sell. A buyer’s market puts home sellers at a disadvantage. In the worst-case scenario, a seller may have to sell for less than hoped for or include repair and replacement promises to the potential buyers.

If you cannot afford to purchase a new home

In case, you cannot afford to make a down payment on a new house after your sale, you should wait. Such situations arise when you break even or don’t get too much profit from the real estate sale. If you do not have enough money savings for a down payment, closing costs, and lender origination fees, you may want to wait to sell your home.

You have done incomplete or shoddy home renovations

If you’re currently in the process of renovating your kitchen, adding a room, or finishing your basement, it might be wise to hold off on putting your house on the market. Incomplete home improvement projects (or a badly done job) can significantly discourage prospective buyers. It’s advisable to complete any ongoing remodeling projects in a planned manner before officially listing your house for sale.

How to sell your home easily and quickly?

According to experts, the best time to sell a house is generally late spring and early summer.

If you’ve decided to put your home on the market, here are some tips on how to sell your home and get the best deal.

Find a good real estate agent

There’s no denying that a real estate professional can guide you in the best possible way, whether it’s to buy or sell a house – particularly if the housing market is an unpredictable one. Seek recommendations from friends or family members, conduct interviews, ask the right questions, and hire the best real estate agent out there.

Complete your home repairs according to the building code

To land the best offer, the seller has to make sure the house is good enough to attract potential buyers. Make the necessary repairs and replacements so that your house passes the inspection, and creates a good first impression.

Take the help of good staging techniques

Hiring a professional home stager can help show the buyer the best way to optimize the living space. Effective staging helps to bring out the best in your home.

Improve curb appeal

Enhancing curb appeal plays a pivotal role in selling a house by creating a strong first impression on potential buyers. A well-maintained and visually appealing exterior can attract interest and make buyers more inclined to explore the property further. It can lead to increased buyer engagement, better offers, and a potentially quicker sale.

Key takeaway

The bottom line is that the decision to sell your house now or wait for a more favorable time is a big one. Generally speaking, low mortgage rates and a low housing inventory make it a good time to sell. So, is this year good for selling? Well, that will depend on your personal circumstances and the local dynamics of the market. If you’re getting a price that’s beyond your expectation, go for it. If not, why not wait for a better deal?

Written by Ramona Sinha. October 8, 2023

Ramona is the Senior Content Writer for Kukun. This experienced blogger uses simple and succinct words to decipher the complex phenomenon called life. She has written articles covering a broad range of topics, such as real estate, lending and mortgage, finance, business, taxation, home designs, home improvement projects, decor concepts, and more. An avid traveler, she’s a digital nomad at heart and an animal lover from the depth of her soul.