How to know when it’s the right time to buy or sell your home
We hear about real estate everywhere. Real estate agents and news sources are always commenting on current trends and we’ve been told for years that there are certain times and conditions when it is better to transact homes. It’s become engrained in homeowners that you can somehow “crack the code” and “beat the market”. That Spring and Fall are the best times to sell and that if the market is down you should wait. But is that actually the case?
Research shows only about 25% of people actually choose to move based on current market dynamics.
We instead often make these decisions based on life events that mean we need more or less space, want to live in a different neighbourhood, or perhaps even a different city! Marriage, divorce, growing a family, career changes, and retirement are all reasons why a person may choose to buy or sell a home.
No matter what the market is doing, we believe the right time to transact real estate is the time that is best for YOUR personal circumstances. And we believe homeowners can be successful in any market if they have transparent access to the knowledge, tools, and information they need.
What if it’s a cold market?
If the current market is cold, and therefore hot for buyers, when you are trying to sell your home you may need to consider a lower price or doing more to attract buyers to your property. Fortunately, if you are also buying you will have more negotiating power to get the best deal on your next home. Although it may be more challenging to sell in these markets, with a bit of research you should be able to make a purchase that offsets any losses from your sale.
What if it’s a hot market?
If the current market is hot for sellers you should have an easier time selling your home and could even make a profit on the sale! Buying your next home may be more challenging and competitive, but you should have more wiggle room from doing well on your home sale. With the proper research you should be able to offset any losses from needing to spend more on your home purchase by selling your own home for more.
When you are buying and selling within the same market, it’s most important to consider the net outcome rather than just the sale price.
So why should I care about the market?
When you are ready for a home transaction that requires you to change your location, type, or size of home, you will need to do your due diligence into market conditions in order to optimize your home transaction. These factors can significantly impact the value of homes and the more information you have the better decision you will be able to make.
Let’s look at a few different scenarios where market conditions can make a bigger impact on your home transaction:
Changing Markets
When changing markets but staying in relatively the same type, style, and size of home, it’s important to research market trends in each location. The price of homes in one city can vary greatly from another city and even community to community. Looking at market trends may help you narrow down which new location will be best for you. Ideally, homeowners will sell high in one location and buy low in the next to maximize the value they can get from their home.
Upgrading
If you are looking to upgrade in size from your current home, it’s important to know what your style of property is selling for AND what larger homes are selling for. This can help you make the decision of when is the best time to list your current home and buy your new one. Transparent home data can also help with determining which communities and home features are within your price range so that you can make the most informed decision for your situation.
Downsizing
For those thinking about downsizing, it’s important to know what your style of property is selling for AND what smaller style homes are selling for. When downsizing it’s likely that you will sell for more than you are purchasing for, but how much more could depend on the market. Staying up to date with market data can help buyers who are moving to a smaller home be more strategic about their purchase in order to retain the most equity out of their home sale.
Flipping
Home flippers need to be extra aware of what is happening in their market, especially how much specific renovations can increase the value of a home. Looking at comparable homes for sale and recent sold data can be a great way to do this.
Entering the market
The amount of home you can purchase when you are first entering the real estate market may impact when you choose to purchase your first home. Although as home prices remain high… so do rents. Keeping tabs on the market in the communities where you are interested in buying will help to determine what you can afford and maximize your investment.
Exiting the market
How much you can sell your home for may impact your timing on deciding to leave the market. That’s why keeping a finger on the pulse of what is happening in your community will be so crucial. Home sellers can get the most value for their properties by knowing the value of their property and utilizing Bōde to sell it, while saving on costly fees. Bōde charges just 1% up to a ceiling of $10K- and only when you successfully sell.
Ultimately, buying and selling a home is an extremely personal process. That’s why we believe homeowners should have full control over every aspect of it. If you keep current with the market conditions and data, then regardless of your situation you will be able to make a more informed choice.
