By Shayla M. Sharp
The decision to move can come from many factors--change in employment, growing families, retirement, etc.. In the end, all those factors come down to one pressing question. Is this a good time to sell my home? While state, national and global economy situations will have an effect on whether the current real estate market is a buyer's or a seller's market (see article Emerging Trends), the time of year can also affect the success of your real estate sale. Listing at the right time of year can mean a quicker sale or less competition. Careful planning with a qualified Realtor can help you market your property at the right time by using the old economic rule of supply and demand.
Spring is often thought of as the traditional hot spot for real estate transactions as families look to move between school years and during the warmer weather. Sales tend to peak in April and May and continue to hold strong through July. According to Lending Tree, a full 60% of America's moves each year take place during the summertime. During the spring and early to mid-summer, properties are often at their best with blooming flowers, tree foliage, blue skies and tantalizing green grass. Which might not seem like a big deal to buyers in locations such as sunny Florida, but can create a dramatic difference in areas such as Seattle. Not to mention those tax refunds which are often applied towards down payments. Buyers are out in mass looking for homes prior to August vacations and school starting. This creates a greater competition on the buyer side which in turn helps sellers to reach higher selling prices as buyers compete through bidding. But remember, it can take several weeks to close a sale, so you may want to consult a Realtor about listing your property early in the peak season. However, the Spring may not be completely ideal. Often during this time, according to real estate experts, many buyers are in the "just looking" stage. With help from your Realtor, you can weed out the less serious prospective buyers and focus on those who are motivated.
By August, sales will often fall off as families go on vacation and get ready for school. While not ideal, the buyers still looking will be more motivated to make a purchase and get settled before school starts, giving you, the seller, an opportunity to sell at a higher price. Later, in the Autumn, you can expect a small upswing in motivated buyers who have either waited through the summer looking for better deals or are dealing with their own time constraints.
The IRS has guidelines in place that also help to motivate buyers towards the end of the year. According to the IRS, a home seller has only 180 days to close on another sale (in which they are the buyer) if they hope to defer taxes from the profit of their original property sale. This means that those who sold their homes in the Spring or Summer, will need to purchase a home within six months of that sale, making them very motivated to move through the real estate transaction process as quickly as possible.
Generally, experts feel that if you sell your home between Halloween and New Years', chances are that you will sell faster and closer to your asking price. Just remember, the end of the year brings with it the various holidays during which time potential buyers will have their focus away from home buying. But don't worry, they'll be out again in January with sales steadily increasing through Spring, thus continuing the cycle.
You may find yourself in the situation where you have to sell off of peak realty season. Don't despair. Consider placing your house on the market during Winter. Buyers are less likely to draw out negotiations as they will want to close the deal in time to claim mortgage deductions on their taxes, which can allow you to push for a quick closing.
If you know earlier in the year that you will need to sell in the Winter, take lots of photos when the home looks its best with blooming flowers, green lawn and leaves still on the trees. Use these images to help show potential buyers how the property looks when it isn't covered in snow. With the holidays, chances are your home has already been decorated, cleaned and prepared for various company--perfect condition for open houses. With minimal extra work, you will be ready to have a Realtor show your house off to potential buyers. Remember to keep decor simple, elegant and tasteful--a crackling fire is always a nice touch. Make sure steps and walkways are free of ice and snow. With less competition, you may just find yourself getting the better price.
Article first published at NWAbode.com in October 2009.
Shayla M. Sharp, a freelance writer, photographer and designer, enjoys living in the Pacific Northwest with her best pal Stars, a border collie mix. Shayla spends her free time gardening, quilting and reading, during which Stars is always by her side.