A famous axiom in real estate says that the three most important factors are location, location and location. Albeit oversimplified (as most cliché’s are) it remains mostly true.
One consideration that gets a lot less press but can be equally important is timing. While getting the highest possible sale price on a home you sell and a great deal on a new home you purchase is more art more than science, historical sales data reveals some trends worth noting.
Spring brings a crowded residential real estate market full of opportunity
Properly timing your sale or purchase can prove invaluable
Trend data uncovers some clear best practices
Timing a Spring Sale for Maximum Value
When you have a home to sell, spring represents the best opportunity to get in front of a large number of buyers in a hurry. Ready to leave a home they’ve outgrown or explore new options, eager buyers flood the market as soon as the snow melts.
But with opportunity comes competition, home sold data tells us that the number of listings rises in the new year and peaks between April and June. Unsold homes from last year and anxious sellers make up a large portion of these homes with an eye toward being “first”.
But first isn’t always best and a deeper look at the numbers indicates that sellers who obtain the highest percentage of their list price actually sell in June and July.
The data clearly indicates if you have some flexibility, listing in May or June may be a better strategy for many. Competition early in the year is high with supply greatly outstripping demand. As a result prices and terms suffer. If you have the flexibility, a measured approach of waiting may prove fruitful.
If you don’t have that flexibility, you must accept that there will be more competition and take steps to adapt. Spring is still the best time to sell your home, but staging, detail-work and flexibility are paramount in your ability to make your property stand out early in the year.
Timing a Spring Purchase for Maximum Value
As you can imagine, potential buyers should proceed down the opposite path. A flood of listings and opportunities will
present themselves beginning in February through spring and savvy buyers need to be ready. This means taking the time to define exactly what you want, a clear plan to visit homes early and a pre-approval in hand.
Sellers may be more amenable to your terms and demands earlier in the year, but the most important factor in your success is your ability to pull the trigger when you find the home that meets your family’s needs. Let others hem and haw and wait out the market, you’ll be moved in and enjoying your home all summer.
The Bottom Line
All of this represents directional advice through statistical analysis. We know that your family, your home and your future are not statistical models. While this advice can be helpful, every situation is different. We’d love to hear about your situation and collaborate with you to help your family find a new location, location, location. Schedule a consultation today.