When is the best time to sell?
Traditionally, there is an upward swing of listings in springtime, and it’s no wonder; all the flowers are in bloom, the weather is warming up and the sun is out – everything looks brighter. But the truth is, the best time to sell is whenever it suits your personal situation.
But with the current volatile market, what should you be thinking about when considering the best time to sell?
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1. Selling in a HOT market
When prices seem to go up every week, it can be tempting to sell when you don’t have to buy back into the same market (around the same time and/or area, like you might do with a primary residence).
These markets are generally very easy to sell in, but quite difficult to buy back into due to high demand. If you are getting closer to retirement and looking to sell some investment properties to improve your financial position or bring your retirement forward, then this can be a great market to sell in.
If you are selling an investment property or even your own home (that was previously used as an investment property), you should speak with your tax adviser before selling to account for any potential tax implications.
Remember, property sales can also greatly affect any pension payments if you are entering retirement so do your homework first.
2. Selling in a TOUGH market
This is where prices are coming down. Often this is considered a great time to sell if you are considering buying back into the same market.
Many astute people will sell and upgrade in this type of market as they will potentially be in a position to buy an even better property, despite perhaps receiving a lower offer for their current property.
There is also very little competition from other buyers.
3. Selling in a STEADY market
This is the easiest market to make decisions, as the market is neither going up nor down and overall economic conditions are stable.
These markets are often difficult to pick though, because market shifts can happen quickly and most people are caught off guard when a market changes.
Buyers often say they will wait for property prices to bottom out before they buy something, but the reality is you only really know that prices have bottomed once they start going back up again and by then it is too late.
Aside from market conditions, also consider the timing around what you are trying to achieve. This comes back to remembering what is best for your personal situation.
Speak to agents before you put your property on the market to understand how long it will generally take to sell a property in your local area.
Also find out which type of properties sell faster as this will give you an indication of where your property may fall in that timeline.
This helps to set your expectations and have a deeper understanding and confidence around pricing offers.
Ultimately, when you sell is up to you. Having knowledge about the different types of markets will strengthen your decision and give clarity during what is traditionally a challenging time.
