When to sell a house is one of the most frequently asked questions we encounter. The answer should be simple: sell your home whenever the buyers are searching. However, the topic is more complex than it first appears.
Technically, someone is always on the hunt for a new home, which means anytime can be the “right” time. Still, the market is nuanced, and conditions can change quickly. In this post, we’ll take a deep dive into the various types of markets you may come across, the effect of seasonality, and what the signs are that the time is right for you.
Types of Markets
We will begin this home-selling journey with a little background research. Knowing the details will determine everything from your initial listing price to how far you go with your home renovations. Before your listing goes live, you want to know what you’re up against. You can typically categorize the current market into one of three scenarios:
A Seller’s Market
Not enough houses are for sale, and it’s a mad scramble for buyers to find anything. With so much competition to contend with, features that were once “must-haves” now become negotiable.
Buyers in this market don’t hold out for perfect; they will often take what they can get. For sellers, this is by far the most advantageous scenario. You can likely expect multiple offers on your home, and getting well over your asking price is a very real possibility.
A Buyer’s Market
This situation is the opposite of advantageous for the seller. Instead, the buyer holds all the cards because there are too many listings to choose from. They take their time, they negotiate, and they may even test their luck with lowball offers that are borderline insulting.
Trying to sell a home during a buyer’s market can be a frustrating endeavour. However, a knowledgeable real estate team can help you make your listing stand out and negotiate for the best possible price given the circumstances. And as you’ll soon see, all is not lost even if your house sells for less money than you’d hoped.
A Balanced Market
The buyers have no particular advantage when conditions are balanced. The bad news? The seller also doesn’t have an abundance of negotiating power either. Both parties will give a little and take a little to make the deal happen.
There are just enough houses for sale and just enough buyers to buy them. The good news is that a balanced market is not as challenging as a buyer’s market. It’s just not as smooth sailing as in a seller’s market.
Looking for even more tips to sell your house in any market? Check out the posts below:
- Is It Better to Buy or Sell First in Peterborough?
- Selling a House in Peterborough From A to Z
- What a Concierge Realtor® Can Do to Sell Your Home
There’s Always a Silver Lining
Knowing the market is essential for a successful sale. It’s not like potential buyers are browsing a shoe selection, and impulse buys are exceedingly rare in real estate. The ability to plan and strategize means you don’t have to wait until conditions are more ideal before you take action.
First, there’s no guarantee that the market will change in your favour. The longer you wait, the more the market could turn, but even a challenging situation offers a silver lining. The key isn’t to worry about getting your timing right, but rather to buy and sell in the same market.
Picture this: You go through the frustration of selling your home during a slow period where hardly anyone was buying. There were times you wanted to pull your hair out, but you made it! Your house is now sold, and all those headaches are behind you. Now, you are the buyer, and you have many options before you with very little competition.
Alternatively, imagine that you have just sold your home in a busy seller’s market. With so many buyers pushing each other out of the way to get to your listing, the selling process was easy. But now that it’s your turn to be the buyer, it’s not so easy.
These two scenarios unfold all the time, which is why we never recommend trying to time the market. In any market, you will have strengths and weaknesses, and you just have to do the best you can–with the expert guidance of an experienced Realtor® behind you, of course!
A little background knowledge can lead to a successful transaction. The posts below will highlight the exciting opportunities in Peterborough real estate:
- A Guide to the Current Peterborough Housing Market
- A Guide to Peterborough’s Luxury Housing Market
- A Walk Through the Neighbourhoods of Peterborough
Seasonality and Real Estate
Types of markets are one thing many homeowners consider before listing their houses for sale. Seasonality is another. Like retail, real estate does have busy seasons and slow seasons.
For example, spring and fall are usually the busiest months for housing sales. Things are a little slower during winter and summer when many people are on vacation. During these seasons, housing prices rise and fall based on the level of demand.
But unlike other commodities, you’ll never see a sign saying, “House for sale, 75% off, this week only.” In other words, there may be a “busy” time in real estate, but that doesn’t necessarily equate to the “best” time.
Sometimes, it can be advantageous to sell during what is traditionally a slower season. Though there tend to be fewer buyers in the winter, the ones that are in the market are typically highly motivated and eager to act. They may be moving for work or school, and they want to get settled as soon as possible. Even better, you will have less competition.
Inside the Buyer Mindset
As you ponder what may be the best time to sell your house, somewhere on the other side of the fence, your buyer is also asking, “When is the best time to buy?” And this leads us to one of the more nuanced aspects of real estate: understanding the mindset and motivation of your buyer. Potential buyers come from any of the following backgrounds.
- First-time buyers where price is an all-consuming factor
- Affluent first-time buyers or those with family support where price may be less of an issue
- People looking to downsize to a smaller home
- Families and single professionals looking to upsize to a larger home
- Affluent buyers who intend to tear your house down or renovate it to the point of no recognition
- Investors who plan to rent the home to students
- People relocating from the GTA in search of lower prices
At the end of the day, your buyer may be someone who doesn’t want to move, but has no choice. Or they may not need to move, but simply want a new experience and a change of scenery. Knowing who your most likely buyer is can help you maximize the value of your home like nothing else.
For example, suppose you’re selling a detached home with four bedrooms and three bathrooms. You’re not likely to attract a price-conscious first-time buyer or someone looking to downsize.
Or, if your home is older and needs a lot of work, your buyer may intend to rebuild a custom house on the lot. In this case, you may decide to skip much of the work of renovations and updates. Instead, creating outstanding curb appeal can help you maximize your results with less effort.
What makes living in Peterborough so great for people of all ages? The posts below are just the tip of the iceberg:
- How Peterborough’s Entertainment Scene Rivals That of Toronto
- What Does a Night Out Look Like in Peterborough?
- All About Peterborough’s Stunning Green Spaces
- Is Peterborough Dog Friendly?
- Top Activities for Kids in Peterborough
Making the Most of Any Market
If you take anything away from this article, it’s that you don’t have to wait for a better time to sell your house. By formulating an effective selling plan, you can create the best possible results in any situation. With that firm foundation in mind, let’s take a look at some other ways you can sell as fast as possible and for the highest amount.
Pricing
How much is your home worth? It depends on several factors, including its location, size, and condition. Most importantly, your listing price must be aligned with the current market to ensure it generates the most interest possible from buyers. If you set your price too high, you lose the momentum that early excitement brings. This could mean your home stays on the market longer, and you eventually sell for less.
If your price is too low, two things may happen. The most likely scenario is that your house will sell, but you won’t earn as much as you deserve. Alternatively, potential buyers could get spooked, thinking that your low price indicates massive problems and headaches they’d rather avoid.
When determining value, expert guidance from a local Realtor® is invaluable. They can assess the most compelling price point based on accurate data and up-to-the minute statistics. This aspect of the sale is far too critical to leave to chance!
Preparation
Unless you’re selling vacant land or a teardown house, you’ll want to prepare your home for the market. Thinking back to our retail analogy, what is someone willing to pay more for? A wrinkled up shirt carelessly strewn across a shelf, or one that is neatly folded and expertly displayed according to size and colour?
Likewise, your home will sell for more the better it shows. A thorough cleanup and decluttering provides the foundation. A few strategic updates and a coat of fresh paint can help your home look almost brand new.
Exposure
With your house strategically priced and ready to show, the next logical step is to start attracting the most likely buyers. The more people who see your home and fall in love, the faster it will sell. And most studies suggest a house that sells fast typically earns more money, which makes getting your listing in front of buyers’ eyes critically important.
A good real estate agent will make sure you’re covered by getting your home featured on the MLS® and Realtor.com, but we won’t stop there. We will launch an extensive marketing system that reaches buyers everywhere, online and offline.
Targeted social media campaigns, outstanding photography, and beautiful, magazine-like print ads are just a few tools we use to bring your listing to the world.
Let the Experts Guide You
No matter when you decide to sell your home, an experienced professional is the key to a seamless and successful experience. Instead of stressing about trying to do everything yourself, you’ll feel supported and in control of the entire situation. Working with an established real estate team also gives you access to a network where all the help you need is just a phone call or text away.
Are you ready to sell your home the right way? We are happy to provide all the guidance you need for outstanding results. Reach out to team@jeffandkatie.ca or call 705-243-9797 for more information.
Let Us Guide Your Journey
Curious about your real estate options? Relocating to the Peterborough area? Our experts are ready to help.
