Is NOW a good time to sell your house in Denver?
Not sure if now is a good time to sell your house in Denver?
Well, we’ve got some great news for those of you who are on the fence: 2017 is proving to be a great market for sellers.
In fact, according to the National Association of Realtors, 52 percent of homes sold in April stayed on the market for less than a month.
However, the decision to sell shouldn’t be solely based on promising statistics about the market conditions. You’ll also want to take into account the seasonality of the market in Colorado as well as your own personal situation.
Here’s what you want to keep in mind before putting up that for sale sign in your yard:
Let’s first break down the seasons to get a better idea about what months might work best for you.
April thru Late June
These months are the peak season for selling your home.
Although, sometimes it may start even earlier due to warm weather conditions. In 2016 and 2017, for example, peak season started in February.
Here are some pros and cons of selling during this time:
Bigger sale prices
Homes look better (i.e. better curb appeal due to spring bloom)
Days are longer so buyers have more time to look at homes
Likely to receive multiple offers resulting in bidding wars
Need to be comfortable being the backup offer
July is typically a historically slow month to sell your home. However, there are some benefits to selling during this month. Let’s take a look at the pros and cons of waiting until July:
Flexible schedules and longer days - buyers’ work schedules tend to be more flexible during the summer months, meaning you’ll likely see more interested parties walking through your doors
Higher sense of urgency- families with kids will want to be moved in before school starts
Less competition and slower pace
Higher expenses- your home needs to be ready to show around the clock. Landscaping, A/C, and lighting bills can quickly add up.
Fewer prospective buyers and prospective homes
Typically takes longer to sell during this month
August - October
While the fall market isn’t nearly as busy as the spring one, this season can still prove to be a great time to sell. However, this season does come with its own unique set of challenges.
Here’s what you need to keep in mind when selling in the fall:
Demand picks up a bit- once buyers are back in their regular routines, they’re ready to get back out there
Low inventory- slim pickings can result in more interested buyers
Tougher negotiations- buyers know you’re receiving far less offers in the fall and they’ll likely use this to their advantage when negotiating a price.
Daylight waning- buyers either have to leave early from work or use the weekends to look at properties
Fewer buyers shopping
November - February
The cold winter months and shorter days typically account for a much slower market.
Let’s take a look at the advantages and disadvantages winter poses:
Beat the spring rush
Inventory and competition is lighter
Buyers willing to close a deal faster
Potential for lower purchase price when buying
Show off energy-efficient appliances- 90 percent of buyers consider heating/cooling costs very important
Good opportunity to stage your home festively and show off exterior lighting
Tough to pull off large-scale remodels during this time
People focused on the holidays
Outdoor landscape less visually appealing due to bad weather
Many buyers want to wait until the spring to utilize tax return
Likely to have to reduce your asking price
February - Mid-March
February to mid-March is considered the nesting period in real estate.
This is the time when sellers and agents are usually preparing their homes for the spring.
Although, many like to get an early start on the competition and list their home during this period.
Once the weather begins to warm, you’ll start to be presented with the same typical challenges and opportunities of spring sellers.
Of course, the time of year isn’t the only thing you want to take into consideration when determining the right time to sell.
You’ll also want to consider your personal situation, and make sure all of your ducks are in a row.
Here are a few signs that you’re probably ready to take the leap:
1. You’re Financially Mature
If you weren’t financially ready to sell your home the first time around the block, you probably learned a few lessons the hard way.
Make sure you put those hard-earned lessons to use by being a smart-money home-seller the second time around.
This all starts by taking a long hard look at your finances and making sure you’re financially mature enough to buy and sell. If all of your non-mortgage debts are paid off and you have at least a few months of savings in your emergency fund, that’s usually a good sign.
2. Your Home No Longer Fits Your Lifestyle
If you’ve got a growing family, there’s a good chance that your current home isn’t meeting your everyday needs.
Or, maybe your kids have moved out and you’re ready to downsize.
Regardless of if you’re upsizing or downsizing, you’ll want to make sure your mortgage fits your budget. The typical recommendation is 25 percent of your take-home pay for a monthly payment over a 15-year mortgage.
3. You Can Actually Afford to Move
Buying a new home is certainly an exciting venture. However, don’t get so carried away with excitement that you forget about the costs of your current home.
You’ll have to factor in moving and packing costs, as well as home repair and maintenance costs.
Colorado Real Estate Market: Wrap Up
Colorado’s economy is expected to remain strong and its unemployment rate is maintaining its record low (2.3 percent).
This is overall good news for those looking to sell their home this year.
As you can tell, each selling season in Colorado presents its own unique set of opportunities and challenges. There’s no single formula for determining the best time to list.
If you’re looking for a pro to guide you in the right direction, contact us today.