Sell now or later?

In the world of real estate, the month of January means many homeowners begin to contemplate the thought of moving.
This is easy to understand as the beginning of the year is marked by New Year’s resolutions, new goals, new lists and other things. Many of the thoughts are accompanied by the statement, “we are going to wait until spring.” The logic behind such thinking is that their property will look better in the spring when their landscape is in bloom. They also do not want to have potential buyers dragging the muck of snow and dirt through their home.
This makes a lot of sense on paper. However, it may not be the best strategic path to take. The flaw with this strategy is that the spring is when the majority of property owners list their property for sale. In fact, the number of homes available for sale will be 30 to 50 percent higher in the second quarter than it will be in the first quarter of the year. This means more competition.

A better strategy may be to list your property for sale between mid-February and mid-March.

Here are four reasons why this a sound approach:

  1. Demand is strong, especially here in Colorado.
  2. There is less competition now than in spring.
  3. The process will be quicker. New regulations in the mortgage industry have lengthened the average number of days a property can be under contract from the low 30s to the low 40s. In the spring, with thousands more properties under contract, the potential for a slow down in the process is possible.
  4. Mortgage rates are still historically low. With rates expected to rise as the year progresses, buyers will be able to afford less in terms of purchase price. By listing your home for sale now, more buyers will be able to afford your property compared to later.

Beat the competition

So, you have decided you want to move forward and sell your property and you want to beat the competition by coming on the market before spring. What should you do now? The most important step now is to assemble the best team of fulltime professional advisors whom you trust and with whom you communicate extremely well. This means meeting with a realtor who is a proven marketer and negotiator and a mortgage lender who understands has experience with the new laws and processes known as TRID.