Knowing the Current Real Estate Market: Pricing and timing…
Before you begin to consider pricing your home or choosing the right real estate agent, it is a good idea to become familiar with your current local real estate market. This will help you determine the best timing and best price for your sale.
Traditionally, the peak buying season in the United States falls between April and May of each year, with stronger-than-average sales continuing into July before tapering off in autumn. Buyers can typically move more easily during warm and mild weather, and families with children do not have to worry about interference with school schedules. Although for us in Southern California, our market is not affected as much by the cold weather or the rainy season and we have seen the months of November, December and January being very busy! And selling in the winter may have its perks as well, as your home will not “compete” with as many others on the market.
Regardless of when you decide to sell, it’s obviously very important to determine the possible profit or loss from the sale of your home.But keep in mind that how much profit you would like to make from the sale of your home is completely irrelevant to the fair market value of the property.
What is your mortgage situation? Can you secure an asking price higher than what you originally paid for the property, or higher than what you currently owe? Don’t forget to consider closing costs associated with the sale. You can ask your Realtor to get you an “estimated closing statement” which will include the sales price minus the balance of your current mortgage, the Realtor’s commission, County & City transfer tax and other fees.
You may want to create a post-sale plan that includes an escrow strategy and your post-sale plans – like whether you’ll be buying or renting? will you need to do a “lease-back” from the buyer in order to give you a little extra time to find a new home and to close their escrow?
Many different issues and questions have to be answered before you put a property on the market. The better informed you are, the easier the process will be and the more money you will clear from the sale.
So as always, we always recommend that you should speak with a local and experienced Realtor who will advise you and inform you through out the entire process.