What is the best season to sell your home?
We asked Residex CEO John Edwards if
there was a ‘right’ season to sell your home and if there were any other
factors at play.
Timing is everything. But
does this age old saying hold true when selling residential property? Does
"home seasonality" exist and what other factors should determine when
you buy or sell your home.
It’s often been noted that spring
is the season when For Sale signs pop up everywhere. This should come as no surprise
given homes on display are at their best during this period; the garden is filled
with spring flowers and you won’t necessarily draw attention to what your home
lacks — be it air conditioning, limited natural light, or insulation.
But of course, from a buyer’s
perspective the opposite is true. Home hunters should be wary of what appears
to be the perfect house during spring. We recommend inspecting a house during
the darkness of winter or in the heat of summer; this way you’ll have a more
accurate impression of its true attributes.
For sellers, the spring
weather traditionally encourages more buyers to attend inspections, which in
turn increases the potential demand for your property.
The downside of spring is
that many vendors list their homes during this time. As a result, competition
for buyers’ attention is thick and fierce, which can be particularly
problematic if your home is at the lower end of the market. For this reason it
is no longer the case that "spring fits all"; seasonality should be
just one factor in deciding when to sell.
The first consideration in
determining the best timing is whether it’s a buyers or seller market. As a
seller, an ideal situation would be to hold off selling your home until demand
outstrips supply. In local terms, investigate your local neighbourhood and wait until there limited stock is available.
This is especially true if one or more houses in your street are already up for
sale.
It is also worth considering
who your potential buyers will be as particular buyer markets are more active
at different times of the year. For instance, family homes are more sought-after
during school holidays when families have the time to pack-up and move, where
as beach houses will receive more interest during the tourist season. On the
other hand, markets such as the empty nesters demographic are likely to be
active throughout the year.
The most important factor,
however, is putting your house on the market at the right price. An
unreasonably priced property will be difficult to sell at any time of the year. Putting your house up for sale at the right
price will encourage potential buyers to act quickly. If your home is
overpriced, you run the risk of potential buyers disregarding your home as
being too expensive or losing interest while they wait for you to drop your
price. We recommend using the Right Price Report from homesales.com.au which will give you an estimate
of your property’s price along with the information you need to fully
understand the housing market in your local area. This will allow you to
negotiate wisely with potential buyers.
So remember, all things being
equal, the most important things to consider are local stock availability,
whether it’s a buyers or sellers market, the condition of your house and when
particular buyer markets will be most active. But most importantly - your
property must be on the market at a reasonable price.
