When selling your home, your main objective is to get the best possible price. So when should you put it on the market? Does the time of year make a difference? The answer is that it depends on the property itself. The time of year can make a difference in some cases, however the location and how the property market is performing are important considerations too. In this article, we’ll take a look at some of the most important seasonal factors that you should consider when deciding to sell your home.
Spring is traditionally the most popular time of year to sell a property. It’s the season for new beginnings, when buyers spring into action (pardon the pun). Homes and gardens often look their best in spring too, which may drive up the sale price in some cases.
However, spring may not necessarily be the best time of year to sell for everyone, particularly if your property is an established home or located in a city or metropolitan area. Whilst spring may bring increased buyer demand, it may also mean many more property listings in the area your home is located. If there are many properties similar to yours on the market, that could mean lower prices.
If your home is located in a popular summer holiday destination, summer could be the best time of year to sell. Holiday-makers could potentially be your best market audience!
Properties that are particularly cool may also be more attractive from a selling point of view in summer. Depending on where your property is located, there may also be fewer properties on the market to compete with so it could help you to achieve your price. However, be careful about selling in December or January, when people are generally winding down and preparing to relax over the festive break and summer holidays. If your property is located in a city location, or its market audience is families with school-age children, there will be fewer buyers on the inspection circuit.
Autumn is another popular time of year to sell, with auction activity usually red hot just before Easter. Many prospective home buyers hit the open house inspection circuit at this time of year, hoping to find a new home and get it settled before the cold weather arrives. Again, consider your location and check out what other properties are on the market to see how much competition you’re likely to encounter.
Your home’s key drawcards could influence when to sell. For example if it has an amazing fireplace or a fantastic underfloor heating system, it may be more appealing to buyers in winter. Likewise, if your property is in the snow-fields or an area that is popular for winter sports, winter could also be the best time to sell. West-facing properties tend to receive more sunlight around this time, and this could make them more appealing in winter than at other times of the year.
Another advantage of selling in winter is there may be fewer listings to compete against, which could drive up competition amongst buyers and lift prices, depending on the area where your property is located. Properties in popular locations often sell quickly all year round.
DON’T FORGET TO CONSIDER MARKET CONDITIONS
In addition to seasonal factors, it’s important to consider local property market dynamics, specifically supply and demand. If there is an oversupply of properties on the market, it may be best to wait it out until conditions change. The best option is to choose a time when stock levels of properties that are similar to yours are low.
If it’s a ‘buyer’s market’ as exists in Perth – a time when there are more properties available for sale than there is buyer demand – there may be no ‘best’ time of year to sell. It may even pay to rent the property out for a while until the market warms up.
Alternatively, if there’s not enough housing stock to meet demand and it’s a ‘seller’s market’ – as has been the case in Melbourne and Sydney – you’ll likely be able to negotiate harder and push up the price. Other influences such as new developments, changes to the first home buyer grant or stamp duty, and interest rate fluctuations can also affect supply and demand, so it’s worth talking to us about these factors.
DO YOUR RESEARCH AND ASK FOR ADVICE
When it comes to selling your home, it’s best to take all of these factors into account, along with your personal circumstances. Your local real estate agent is a great source of information about when to sell, or you could ask us for a free market appraisal report. It’s always wise to do careful research when buying or selling a home, so please don’t hesitate to ask us for help. If you are looking to sell your home and purchase a new one, please speak to us about your finance options as we’re here to help you find the right loan for your financial circumstances and goals. We usually recommend that you try to sell before you buy if possible, so you know how much money you can budget for your next home purchase. However, if you do require bridging finance to tide you over, we can also help you with a competitive option. Please get in touch today – we’re always happy to help!
FINANCE FOCUS | OCTOBER 2017
The information provided in this page is general in nature and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information with regard to your objectives, financial situation and needs. You should seek independent advice from your financial adviser before making any decisions.
AUSTRALIAN MORTGAGE AND FINANCIAL ADVISERS (AMAFA)
Phone: 07 3378 2056
Fax: 07 3378 2069