Selling your home: knowing when the time is right

Selling a home is a significant decision, both financially and emotionally, and knowing the right time to sell can be crucial in maximising your profit and ensuring a smooth transition. 

Although the best time to buy or sell largely depends on individual circumstances, sellers who are flexible and don’t have a fixed timeline may find opportunities to secure better deals and achieve a better return on investment.

If you do have the luxury of time and are considering possibilities such as upgrading, downsizing or moving to the coast in the near future, then a strategic approach is likely to yield better results all round.

But how can you determine when the time is right to sell your home? And conversely, when should you hold off? 

When to Sell Your Home

Market Conditions:

• Seller's Market: If the property market is favouring sellers, it’s an ideal time to sell. In a seller's market, homes tend to sell more quickly and at higher prices, giving you the best return on your investment.
• Rising Home Prices: If home prices in your area have been steadily increasing, you might consider selling to capitalise on the appreciation of your property's value.

Personal Financial Situation:

• Equity in Your Home: If you’ve built up significant equity in your home, selling could provide a substantial profit and be very beneficial if you are looking to upgrade. Equity is the difference between your home’s market value and the remaining balance on your mortgage.
• Debt Reduction or Cash Need: If you need to reduce debt or require liquid cash for a major life event (such as retirement, starting a business, or paying for college), selling your home can be a practical solution.

Home Improvements:

• Recent Upgrades: If you’ve recently made significant improvements to your home (such as a new roof, updated kitchen, or renovated bathrooms) selling soon after these upgrades can maximise your return on investment.

When to Hold Off Selling Your Home

Buyer’s Market:

• Low Demand: If the market is saturated with homes and there are more sellers than buyers, it’s considered a buyer’s market. In such conditions, homes typically sell slower and for lower prices. If possible, it’s wise to wait until market conditions improve.

Declining Home Prices:

• Decreasing Values: If home prices in your area are dropping, holding off on selling might allow you to avoid taking a loss on your property. The property market tends to be cyclic, so monitoring market trends and consulting with a real estate professional can help you decide the best time to sell.

Personal Financial Instability:

• Economic Uncertainty: If you’re facing financial uncertainty or instability, it may be better to hold onto your home. Selling and buying a new home involve significant costs, and it’s essential to ensure you’re in a stable financial position before making such a move.

Emotional Readiness:

• Attachment to Your Home: Selling a home can be an emotional process, especially if you’ve lived there for many years and have strong attachments. Make sure you and your family are emotionally ready to move on before putting your home on the market.

Pending Home Improvements:

• Incomplete Projects: If your home requires repairs or upgrades, it might be wise to complete these before selling. Homes in good condition typically sell faster and at higher prices so investing in necessary improvements can yield a better return when you do decide to sell.

Market Timing:

• Seasonal Considerations: The real estate market can be seasonal with spring typically being the busiest season for home sales as gardens often look their best and families prefer to move in time for children to start new schools.

In summer, the market is still active, but can slow down over the festive season as people focus on their holidays and then getting back to school or work after the festivities.

Rental Income Potential:

• Lucrative Rental Market: If you need to sell before a specific date and your home is in a desirable rental market, you might consider renting it out instead of selling. This can provide a steady income stream and allow your property to continue appreciating in value over time.

If you’re starting a job in a new city soon or a new addition to the family is due, you probably don’t have the luxury of time, but if you’re flexible with your purchase timeline, deciding when is best to sell your home should involve careful consideration of both market conditions and personal circumstances. 

By taking a strategic approach and considering all aspects, you can better position yourself to take advantage of favourable conditions and consulting with an experienced real estate professional will provide valuable insights and help you make a better informed decision.