Originally posted in Jan 2022; Updated March 2024
Because your home is such a valuable asset, knowing when to sell can make a big difference in your life. Selling at the right time can improve your finances and your lifestyle — and selling at the wrong time can do the opposite.
But how do you know if it’s the right time to sell?
Finding the best time to sell is not as simple as striking when the real estate market is hot. Market conditions are certainly important, but there are so many more factors to consider! For instance, when you sell your home you need to be ready both emotionally and financially, and you need to have your next home lined up.
Selling your home is a big decision and a major life event. If you’ve been wondering how to know it’s time to sell your home, this blog may help you make that decision.
You could be ready to sell if:
You Have a Plan
Selling your home means you’ll need to buy another home or make other plans for where you will live after closing. If you haven’t already found your next home, make sure you have some backup options in case your home sells quickly and you can’t find one to buy right away.
You don’t want to rush into buying a home just because it’s available. Have a plan in place to give yourself time to find one you really like.
In addition, make a plan for handling any issues that arise in the home inspection or appraisal. It’s common for a home inspection to uncover a few things that need to be addressed. If that happens in your case, you’ll need to either make the repairs or negotiate with the buyer and potentially lower your selling price.
Your real estate agent can help you navigate this, but be prepared for issues to come up.
You’re Financially Ready
Finances are one of the biggest factors in determining if you’re ready to sell.
Ideally, you should wait to sell until you have equity built up in your home. For most homeowners, it takes about five years to build enough equity to offset the costs of selling and moving. If you owe more on your home than it’s worth or if you’ll break even on a sale, it’s generally best to hold off on selling unless you’re trying to avoid bankruptcy or foreclosure.
To determine how much your home is worth, ask an experienced RealtorⓇ to run a comparative market analysis (CMA). Then, compare that estimate with how much you still owe on your mortgage. Ideally, you want to have enough equity to pay off your current mortgage and put a down payment on your next home.
Another financial factor to consider is whether or not you can afford to buy the home you want. If you don’t need to sell, and the homes you like are out of your price range, it might be wise to wait until you can pay down your current mortgage and/or save enough money to buy the home you want.
You’re Emotionally Ready
Selling your home can be an emotional roller coaster, so make sure you are emotionally ready to sell. Before you list your home, ask yourself if you’re ready to:
- Put in the work needed to get your home ready to list and keep it show-ready for weeks (or even months)
- Receive feedback from buyers that you may not want to hear
- Work through difficult negotiations over the price of your home
- Leave the home where you’ve made years of memories with your family
If you can honestly answer “yes” to these questions, it’s a good indication that you’re emotionally detached enough to sell your home.
You’re Outgrowing Your Home (or It’s Time To Downsize)
Does your current home meet your everyday needs? If not, it may be time to sell and find a home that suits your family and your lifestyle better.
- Need another bedroom or two for your growing family? Maybe you’re having children, your kids have outgrown their shared bedroom, or your elderly parents are moving in and you need more space.
- Starting a business or working from home? Maybe it’s time for you to have a dedicated home office.
- Facing an empty nest? On the other end of the spectrum, maybe your kids are grown and your home is feeling big and empty, and it’s time to downsize to a smaller home.
No matter the reason, if your home no longer has the space you and your family need, it might be time to find one that’s a better fit.
You Need To Move Due to a Job or Life Change
Similarly, a job or other major life change may mean having to move regardless of the market or other factors.
If you need to relocate for a new job or a job transfer, for instance, you don’t have the luxury of waiting for the market to turn. Or if you’ve lost a job or are otherwise experiencing a reduction in income, you may need to find cheaper housing as soon as possible. Or maybe you’ve experienced health problems that have affected your ability to navigate your current house and you need to find a more accessible home.
If a major life change is making a move inevitable for you, it’s time to talk with a real estate agent about selling.
Your Home Is in Good Shape
If your home is in relatively good shape (i.e., it doesn’t need a long list of repairs or updates to sell for a good price), you could be ready to put your home on the market as soon as other factors dictate it’s time.
But if your home needs work, it may not be a great time to sell. You’ll either have to do a lot of work before you sell OR potentially give up a lot of money at the closing table.
The truth is, most buyers (with some exceptions) aren’t interested in dealing with substantial repairs to major home systems (roof, foundation, major mechanics, etc). They’ll gravitate toward homes that have been well-kept, recently updated, and don’t need a lot of work right away.
So if you’ve kept up on home maintenance over the years and your home doesn’t need much in the way of repairs, you might be ready to sell.
The Market Is Right
While the real estate market isn’t the only factor to consider when determining if you should sell your home, it’s still an important element to take into account.
Generally speaking, the real estate market has seasonal trends. More homes sell in the spring and summer than in the fall and winter (especially if you live in a place with harsh winters like Minnesota!).
Aside from seasonal trends, you’ll also want to consider the overall state of the market. For several years now, it has been what we would call a “seller’s market.” In other words, the market is favorable to sellers and it is, generally speaking, a great time to sell.
That isn’t to say that selling a home in a buyer’s market is impossible: you’re just likely to get more money for your home in a seller’s market vs a more competitive buyer’s market.
While national and state-wide trends are good to know, local trends are even more helpful. Each local real estate market is unique, so you’ll want to consider:
- How quickly homes are selling in your area
- What the average selling price is in your neighborhood
- How much housing inventory is available. (If inventory is low, you’ll have less competition; if it’s on the higher side, it might take your home longer to sell.)
- How quickly home prices are appreciating where you’re selling vs where you want to buy
An experienced real estate agent can provide this information (and more!) and help you determine if the market is trending in your favor.
Still Not Sure if It’s Time To Sell Your Home? Talk With an Experienced Real Estate Agent
If you’re still not sure if it’s the right time for you to sell, consult with an experienced real estate agent like the ResComPros team.
A RealtorⓇ’s job is to provide honest advice and market information to help you determine what is best for you, your home, and your family. They can help you set the right selling price for your home, decide what updates or repairs to do before listing, advise you during negotiations, and much more.
If you’re considering selling your home, partner with a real estate pro you can trust. The ResComPros team has the experience and knowledge you need to help you sell your home at the right time and for the right price. Contact us today to talk about listing your home!