While selling a home is not always a walk in the park, when you add in the current pandemic and subsequent economic situation that we’re facing, it can be downright frightening to think of listing your home for sale.
However sometimes we must sell; either for financial or personal reasons, so if you’re thinking of selling your home now, you might wonder if it’s a good idea.
Ultimately, the answer to that question will depend not only on the market you’re in but on your own personal financial situation.
1. Low supply
One benefit of selling your home right now is the low level of housing that’s currently in most – if not all – markets.
We already started the year off with demand outstripping supply, mostly because mortgage rates are at all-time lows. This saw many homeowners take out new, lower interest loans to reduce their debt obligations.
2. Reduced competition
If you decide to sell your home right now it’s unlikely that you’ll have a lot of competition.
Since there is, overall, such a reduced number of homes on the market when homes do become available buyers who are still looking might be willing to negotiate.
3. Housing prices are still high
A recent poll shows that 83% of Americans think that now is a good time to sell. However, unless you put your home on the market there’s no way to know if you can sell it either at or below the price you want.
Note that if you do decide to sell, any risk goes with the buyer, not you.
While you might not get the offer you might normally have in a different market, who knows…that doesn’t mean you cannot try to get the best offer by turning down offers below what you need or want.
Tips for selling in the current market
If you are going to use a realtor, consider limiting the contract length.
When market conditions are good, realtors typically suggest a 6 to 12-month contract to list your home.
In a normal market, this is fine. However, because this is not a “normal” real estate market you might want to opt for a shorter 90-day contract.
This is because the market is slow and the longer a home sits on the market the worse it looks to buyers. Even though there may be nothing wrong with your home, buyers may look at the time it’s been on the market and disregard it, thinking there’s a problem with it.
Finally, think about what you’re going to do when you do sell.
Do you have another home? If not, this is something to think about before you list your home for sale.
If you will need to purchase a home ask yourself a few questions before you list such as:
- 1. How secure is my job?
- 2. How long do I think I will live in my new home?
- 3. Do I have money set aside for emergencies?
All of these are good questions to ask no matter when you try to sell, but in tough economic times like this, it just makes good sense to be abundantly cautious with any financial decisions you make.
For more information about home selling, check out these:
What You Should Know if Renovating Your Home Before Selling
