Selling a home is a significant decision that requires a great deal of deliberation. This is true no matter the state of the real estate market, but it takes on greater urgency when larger economic trends are at play and the housing market is experiencing alterations. With home prices dropping across the nation, you may have pressed pause on your plans and begun to wonder, is it still a good time to sell?
The short answer: It depends. Read on for acclaimed real estate agent Sean Sonoda’s guidance on the matter.
Assess your long-term plans
You may be tempted to sell your home immediately with the hope of upgrading or downsizing to a new residence shortly after closing or during the process of selling your current property. If this is your plan, now may be the time to list your home.
Why? According to Bankrate, interest rates, which are hovering close to 7%, are only expected to continue to rise. It may be best to lock in a 30-year or 15-year fixed mortgage interest rate on a new residence in the near future before they reach loftier heights.
In any case, define your game plan before choosing to sell rather than listing your home simply because the local buzz is that it’s a seller’s market, which may gradually shift in the buyer’s favor as we move into and through 2023.
Evaluate the cost of living in your specific region
Inflation has impacted nearly all of us, and the cost of living across the United States has skyrocketed. Some experts suggest the price for commodities will level off in 2023. How does this affect you as a seller? Buyers who have been pushed to the sidelines due to record-high inflation will have more money to put towards a down payment and bringing them that much closer to their real estate goals. This might mean holding off on selling your home until this happens, as it could potentially increase the number of offers you receive.
All of this, however, depends on the location of the home you may be interested in selling. Some places might be immune to price reductions, and Hawaii is chief among them. As the most expensive state in the U.S., the cost of living in the islands is 120.07% higher than in the rest of the nation. Some experts also suggest that rental prices across the board will grow by 8.4% in 2023, an increase that might render buying a home impossible for even the most hopeful and qualified if they live in a pricey region. If you sell your home before this increase occurs, however, you may find yourself in a more desirable position to receive multiple offers.
Examine the housing supply in your area
A low supply of homes coupled with high demand is the magic behind bidding wars and, ultimately, a sale above the asking price. With your realtor by your side, investigate the number of comparable homes in your city and neighborhood. Is there a surplus of properties, but more and more people moving out of your area? Or is it a reliably popular area that is continuing to see positive migration?
Take the season into consideration
If you’re reading this right before the holidays, consider this: While spring and summer are generally understood as the savviest times to sell a home, winter listings may attract the attention of serious buyers. That, coupled with low inventory, may put you in a prime place to lure in offers, particularly if you live in a neighborhood that embraces the holiday season and shows off its festive spirit.
Identify the condition of your home
Before making your ultimate decision, hire a licensed, reputable home inspector to come in and perform an investigation of your property. You may feel that it’s in pristine condition, but faults within a home can go unseen, even by those who are the most intimate with it. If major renovations must be made to make your home safe and a solid contender in your city’s housing market, it may be best to hold off on listing your home until after the repairs have been conducted. This isn’t an aspect you can ignore or cut corners on, either: Unless you’re purposefully selling your home as is, most buyers will ask for an inspection contingency. If the inspector they enlist finds substantial flaws with your home, you may have to reduce your price or provide a buyer with a repair credit. If your home needs only a few upgrades to meet or exceed the standards in your neighborhood and you’re eager to sell, you can have them taken care of quickly.
Ask if you emotionally ready to sell your residence
Selling a home is a substantial financial decision, to be sure, but it’s also a deeply personal and emotional one. If you have a profound emotional connection to your home and have no real reason to sell it, you may find yourself second-guessing your decision throughout the process. This lack of objectivity and continued bond with your home may prevent you from taking the necessary steps to sell it, from struggling to put away your personal items for home staging, photographs, open houses, and showings to declining the offers that come your way. This takes us to our next point…
Do you need to sell your home?
Life often changes in the blink of an eye. Whether it’s a career opportunity in several states to the west, a new relationship, or a family member who needs your assistance, there are times throughout our existence when decisions are made for us. If it’s imperative that you sell right away because of your circumstances, by all means, contact a knowledgeable, compassionate, and experienced real estate agent to pave the way for a smooth sale, no matter the market, season, or economy.
Sean Sonoda is precisely this type of agent. He offers homeowners and buyers clear-eyed, honest advice to ensure they’re making sound, beneficial decisions. Whether you’re interested in learning more about Honolulu real estate market trends or might want to list your piece of Kaneohe real estate, he approaches every relationship and transaction with his client's best interests at the forefront of his mind. Book a consultation with him today to begin exploring your possibilities.