We’ve all heard the maxim “buy low, sell high” to turn a profit, but that formula is a lot more complicated when selling your house. Sure, the COVID-19 pandemic lit a fire under the housing market, with the median existing-home price skyrocketing to $416,000 this June, a new record high. This marks 124 consecutive months of year-over-year pricing increases — the longest-running streak that the National Association of Realtors (NAR) has on record. But scoring a jackpot when selling leaves you with lots to handle. Moving costs. Mortgage rates. The whole process of finding a new roof over your head that suits your needs and your lifestyle. We’ve gathered expert tips and insights about eight key questions to ask yourself to determine when to sell your house — and how to fetch the highest price and fastest closing date. Interest rates, unemployment, and other economic factors influence the housing market. A seller’s market puts the seller at an advantage. The inventory available can’t keep up with buyer demand, so sellers’ homes don’t sit on the market for long. In fact, sellers might find themselves with multiple offers and close much higher than their asking price. A buyer’s market lets buyers be choosier. More homes for sale means they sit on the market longer, leading sellers and their agents to discuss strategic pricing, marketing, and showings. While home values naturally appreciate over time, market conditions still impact how large your profit will be when you sell. (Curious about what your home is currently worth? Try HomeLight’s Home Value Estimator, which crunches real-time housing market data based on your home’s condition and other factors in your area.) Boise, Idaho, has been one of the most overvalued markets in the country and the hottest over the past few years in terms of appreciation, says Ti Smack, a longtime real estate agent in Eagle, Idaho, who works with over 73% more single-family homes than the average agent in that area. Out-of-state buyers from California and Washington State seeking lower taxes, better schools, and better environmental conditions have driven the Boise market higher. “There’s limited supply and extreme demand across all price points,” he says. “It’s kind of pushed the local homebuyers out.” Nationwide, after what the NAR calls “two years of gangbuster performance,” the housing market has cooled, with existing-home sales dropping for the fifth straight month. June sales were down 5.4% from May and 14.2% from one year ago. Housing inventory also rose 25% during recent months compared to 8% — the pre-pandemic average for the same timeframe. All this means that buyers soon could find themselves on more solid footing — something to think about if sky-high asking prices are one reason you’re tempted to set out a “For Sale” sign. Of course, deciding when to sell your house involves other elements beyond market conditions. A seasoned agent can guide you through this unfamiliar territory. In fact, most sellers rely on an agent’s expertise: In 2021, 90% of home sellers worked with a real estate agent to sell their home, NAR statistics show. For their help, agents earn commissions ranging from 5%-6%, which the seller typically pays in full out of the proceeds at closing, but their expertise is valuable. (Check HomeLight’s Commissions Calculator for an estimate of average commission rates near you.) An agent’s advice includes: Working with an agent also typically nets you the best price. Last year, homes sold with an agent’s help sold for a median of $318,000 — about 22% more than the $260,000 median sale price of those who went the For Sale By Owner (FSBO) route. Most buyers paid 100% of the asking price, but 29% went even higher, NAR statistics show. If it’s been a while since you’ve been in contact with the agent who sold your home to you, you can ask friends and colleagues whom they recommend. HomeLight’s Agent Match also can lend a hand. This free service analyzes agents near you by thousands of reviews and millions of transactions to find ones who might be a good match for your home sale. Life happens. Even if you love the home where you’ve lived for years, a job change or other circumstances might inspire you to look elsewhere. Last year’s sellers told the NAR that they wanted to move to be closer to friends and family (18%) or because their current homes were too small (17%). People still seem to crave more open and relaxed spaces, with 85% of buyers in May purchasing in a suburb, small town, rural, or resort area. Here are some reasons you might want a bigger (or smaller) place: Older homeowners have some additional considerations, such as: “Many times as people get older and become empty nesters, they no longer want two-story homes they raised their families in,” Smack says. Unfortunately, moving isn’t as easy as clapping your hands and zapping yourself to your new space. While some life events can overrule financial considerations, sometimes the numbers just don’t add up. Tools such as HomeLight’s Home Affordability Calculator can help you evaluate how much home you can afford, but moving can entail some costs that people often don’t consider up front, such as: If a new job means moving to another state in two weeks, you can’t be that discerning with your offers — and even then, things can happen that delay the sale. The median days on market in June was 14, with homes listed receiving an average of 3.4 offers, down from 4.2 a month earlier, NAR statistics show. Although 88% of properties sold in less than a month, contracts still took 30 days to close, these statistics show. From April to June, 18% of contracts had delayed settlements, with 18% of those because of appraisal issues. Your buyer’s circumstances, such as losing a job, also might throw off the sale. From April to June, 7% of contracts were terminated, these records show. If you’ve lived in your home for ten years or more, you’ve watched your neighborhood evolve. Perhaps you have more schools in the area, or you now noticed you’re the oldest resident on the block. Among last year’s sellers, 11% wanted to move because their neighborhoods had become “less desirable” for a variety of reasons. (Conversely, 63% of buyers said the quality of the neighborhood influenced their purchase.) These qualities can include: Traditionally, the best time to sell a house is June if you want to maximize the sale price — and July if you’re eager to sell quickly, HomeLight’s market research shows. But this can vary by location. “Historically, the peak of our market is from the first week of June — when the kids get out of school — to the end of August,” Smack says. “People want to get into their homes and settled before the school year starts.” Even if you’re not dealing with seasonal weather, the best time to sell varies by location, interest rates, and market conditions. Check out our Best Time to Sell Calculator for HomeLight’s historical data in your market on when you can make the most money and which months are best to sell your house fast. True, there are some renovations that increase your appraised value and potential offers, such as adding liveable square footage. But few buyers want to snap up a home that needs TLC: Only 6% of buyers last year wanted a fixer-upper. In fact, 36% of buyers chose a new home to avoid renovations or problems with plumbing and electricity. You don’t have to revamp your whole home to get it into the best shape to sell, though. A survey of HomeLight’s top agents estimated the top resale value of these low-cost projects: Consider this a bonus question. Sometimes selling your home comes down to other particulars, such as noticing little leftover cash in your monthly budget, needing to convert your home equity into income, or just wanting a lifestyle change. Smack has noticed this among affluent buyers, who about a decade ago thought bigger was better, buying homes from 3,000 square feet well up to 8,000 square feet. “Now it seems like there’s a movement to get out of these bigger homes. People just don’t want to deal with the work to take care of a home that size,” he says. So, you’ve done the math and decided you’re ready to take advantage of a hot market and make some money — or sell before a recession. Press “Pause” on calling an agent long enough to consider your next move — and budget accordingly. Ask yourself first: Where will you go next? “The hard part is, before we list your house, where are you moving to? If you’re going to move locally, we need to work on that a little bit,” Smack says. Even though some homeowners in his area can sell for record prices, when they see what they could buy with that money, selling makes little sense. As some put it, “Why would I go from a 5,000-square-foot house to a 2,500-square-foot house and pay the same price for it? … I’d rather stay in the home I’m in,” Smack says. Don’t let your fear of missing out drive you to a foolish decision. The housing market always moves in cycles. “In the future, there will be some real values out there to be had,” he says. If you need expert guidance weighing the pros and cons, an experienced real estate agent can help. Look to HomeLight’s free Agent Match service for a data-driven selection of agents in your area who can analyze local pricing trends and prices per square foot, provide expert home prepping and staging, market your home extensively, and negotiate to get you the best price.1. Is it a buyer’s or seller’s market?
2. Do you have a proven real estate agent?
3. Does your home no longer fit your needs?
4. Can you afford to move?
5. What’s your selling timeline?
6. Is your neighborhood changing?
7. Is it a good time of year to move?
8. Is your home in shape to sell?
Now it seems like there’s a movement to get out of these bigger homes. People just don’t want to deal with the work to take care of a home that size.
Is there something about your current home that just doesn’t fit anymore?
Watch out for red flags
In short, ask yourself these 8 questions to figure out when to sell your house
