Real estate agents, bankers, friends, and family will all tell you that putting your home up for sale in the spring so that it sells before the end of summer is the best thing to do. However, is this the case for you?
Examining the Spring Market
Potential home buyers come out in droves during the spring and tend to buy at the beginning of the summer. Spring is a great time to put your house up for sale for many reasons, including:
- Warmer weather
- More daylight
- End of the school year
- Tax refund checks to be used as down payments
These conditions set up the on-season for selling, but what does the on-season mean for you?
For one thing, houses selling during the on-season tend to sell at higher prices. The reason is that there are more buyers wanting homes than there are actual homes for sale. This means that, as a seller, you can often name your price.
Another great thing about selling during the on-season is that your home valuation is likely to be higher. This is because home valuations are based on homes in your area that have sold recently. Since homes sell for higher prices during the spring and summer, your home will be found comparable to those homes rather than homes that we sold more cheaply during the winter months.
Then there is curb appeal. Homes simply look better when the sun is shining, the sky is blue, and the flowers are blooming. Rarely does a home look as good in the winter. Plus, with more daylight hours, more potential buyers have a chance to ride by and see your home.
Finally, since there are so many buyers during the on-season, you have the potential to get into a bidding war, forcing the price of your home up even higher. You will get to be pickier about whose bid you accept and won’t be as likely to have to make concessions.
So, what is the bad news about selling during the on-season? There are lots of sellers out there. This means that buyers can be picky, too. If your home needs a lot of work or doesn’t pass the “wish list” test of a newly remodeled kitchen or an open floor plan, buyers can look elsewhere.
Buyers in the on-season also tend not to be pressed for time. Many have waited to look in the spring and hope to be in by the end of the summer before school starts. Since they have plenty of time, they can be picky and not jump at the first house that comes close to their needs.
Examining the Off-Season
Sometimes, the spring isn’t the best season. This is particularly true if you are selling to a clientele that doesn’t care about schools, such as with retired buyers or first-time buyers. In fact, if your home is valued more than 20% of homes in your community, selling during the springtime could be the worst time to sell. This is because those with higher incomes tend to vacation during the summer.
In addition to higher valuation homes, if you are selling a condo or townhome, selling off-season could also be of benefit. Those looking for amenities other than school districts, tend to shop throughout the year.
However, if you choose to sell off-season, consider the fall rather than the dark winter. The fall still conjures up images of warm and happy, whereas the winter makes everything feel bleak. If you do choose to sell in the fall, remember that curb appeal is important and that will mean continuously raking up the leaves.
The holidays are typically the worst time to sell because everyone is focused on family rather than moving. In fact, most people would do anything to keep from moving over the holidays.
One good thing about off-season buyers is that they tend to be very focused on the job at hand. They often have to move because of a job relocation or illness in the family and didn’t get to pick their time to move. Therefore, they tend to look hard and buy in a short amount of time.
However, there are many negative aspects to selling in the off-season. First, you will have to put up with bargain shoppers. Buyers during the winter months are often looking for a good deal. They might think you will lower your price, especially if your home has been on the market for a while or you have a situation requiring you to sell quickly.
You will also have to deal with the fact that it is dark and rather dreary in the off-season. Curb appeal just doesn’t have much appeal in the winter, especially if you are in a cold climate. One way to offset this is to maintain the outside of your home and have plenty of photos of your home in the spring and summer months for buyers to see.
Finally, homes simply sell for less in the winter because there are fewer homes on the market and fewer people looking to buy. Some people buck this trend by pricing their home higher and then accepting lower offers, making buyers feel like they’ve gotten a good deal.
