The housing market can be a tricky subject. Sometimes housing prices are low, and other times, they are high. Therefore, many people find it challenging to determine the best time to sell their houses. So, are you wondering, “Should I sell my house now or wait?” This article will inform you of the right time to sell your house fast in Kansas City, the reasons to sell your home now, and when to consider waiting for a better time.
What Is the Right Time to Sell a House?
When Mortgage Interest Rates Are Low
From past events, the best time to sell and see massive success is when there is an increased demand for housing and interest rates are low. This is because the sale price of homes goes up due to an increased number of buyers bidding for limited houses. Therefore, mortgage rates are a vital determinant in deciding whether now is the right time to sell or wait.
As of February 2023, mortgage interest rates are nearing the 7% mark. While this percentage seems high, it is still below estimates of about 8%. That said, there was an increase in asking prices during February, regardless of this rising rate. Thus, selling depends on the current situation in your area.
When the House’s Value Increased in Your Area
After living in an area for a long time, you may notice that the property values grow to the point where you would profit from selling. In some cases, this value increase is due to more buyer demand. If you notice this elevated home pricing, selling now might be a great idea.
It is not uncommon for sellers to receive offers much higher than their asking price in popular selling areas. You may even sell in as little as ten days, with some buyers waving things like appraisals and home inspections in order to purchase the house as soon as possible.
When Housing Inventory Is Low
The number of homes up for sale also determines the optimal time to sell. When fewer homes are on the real estate market and there are more buyers, selling your home can be profitable. This is because potential buyers will compete for the limited homes; therefore, sellers will keep home prices high and sell to the highest bidder.
However, with recent information, the housing inventory has risen from 2021 to 2022 due to inflation and anticipated recession, which may continue in 2023. Unfortunately, these issues could push buyers to leave the housing market. That said, housing inventory varies, so this is not an accurate depiction of information in all areas.
In fact, many sellers strongly believe they still have the upper hand, leading the homeowner to selling a house as is. As a result, they ignore the things they need to do to sell their house, such as regular home maintenance, decluttering, and improving curb appeal.
Reasons Why You Should Wait to Sell Your House
The last two years have left the world with several issues, such as oil sanctions, variable interest rates, problems with supply chains, and a pandemic. Unfortunately, these issues all happened suddenly and quickly, so no one knows what could happen in the future. Therefore, make sure you are financially healthy before you sell your house. This means having little to no consumer debt, superb spending habits, and at least six months of emergency funding. If you do not have these factors, you should not be selling.
In addition, another nationwide or even worldwide event may occur, which could lead to you being unable to pay your mortgage, your home having little or negative equity, and not being able to refinance. Hence, you should work on your finances and make sure you are secure before selling your house. Keep in mind that this is just theoretical, but it is better to plan and be ready for everything.
Comfort in Your Current House
Many people never stop to think about their current living conditions. Are you happy and comfortable where you are? If your answer is yes, then why are you considering selling?
Granted, you might need more space or a change of scenery, but if your home has everything you need at the moment, consider waiting to sell. Holding off on selling is especially wise if your current house will be sold quickly, regardless of the market. This way, you can easily sell when you have no other option.
Additionally, the market is unpredictable. Thus, if you live in an area with desirable and comfortable houses, think about waiting and selling when the market moves to your advantage.
Recent Refinanced Mortgage
In the grand scheme of things, refinancing your mortgage can help you save a lot of money. However, you will have to pay a lot of money in fees and interest, leading to lower equity. So, if you recently refinanced your mortgage, selling now may make you lose all the money you would save from the refinance. That being said, you might not be selling for gain and may urgently need the money for a personal situation. If this is the case, you can make a quick sale. However, if you want to make a profit, ensure your earnings are worth going through the hassle of a home sale.
The right time to sell varies based on location, mortgage rates, property values, availability, and other factors. Nevertheless, there is no perfect time to sell.
Granted, recent news, statistics, and current market conditions may give you an idea of when to sell, but the best time is when you are ready. Try not to rush into the market. Instead, ensure you do your research and that your finances are in order. If you are having trouble figuring things out, you can always enlist the help of a real estate agent.