2021 is already looking like a yet another strange year. In such occasions, when is the best time to sell your house?
Most experts don’t recommend selling your house before spring. There are several reasons why it’s better to wait for spring. This includes tax refunds, good weather, as well as summer break and summer holidays that make the move much easier.
However, 2020 was a bit different. Coronavirus and financial crisis have rescheduled sales and changed the market dynamics. For example, in the previous year we had more sales in fall than in spring. In fact, NAR showed that number of contracts in October rose for 20.2% in the previous year. Demand is becoming strong, which means the prices are slowly going up, which is good news for sellers. However, this also means that the interest rate is slowly growing, which may quickly turn some potential buyers away from making a purchase. Does this influence the best time to sell your house, or will old rules still be of value?
When is the Best Time to Sell Your House?
You can’t go wrong with selling in spring and summer. However, in 2021, you really have to know your local market before listing your house. For example, you need to take into the account local job growth, existing neighborhood inventory, tax incentives, mortgage interest rate, demand, and similar. All of this can influence the best time to sell your house.
In Wisconsin, for example, winters are very cold. Bad weather is never a good moment for a house sale. However, this doesn’t mean that sales are impossible at this time, especially now when everything has turned upside down. On the other hand, California is warm all year round, so winter isn’t that bad for a house sale.
Why Hasn’t Coronavirus Changed the Housing Market so Much?
Despite the first predictions, turns out that COVID-19 pandemic hasn’t impacted the real estate market as much as it was thought it will. As market conditions are important for predicting the best time to sell your house, it’s important to understand why it is so.
At first, the housing market crash was something most people predicted. As people started losing jobs and recession began, this seemed like a logical result. However, as time passed, the opposite happened. The hose prices started rapidly rising, and they rose around 7.8% in third quarter of 2020 compared to the third quarter of 2019, which is the fastest yearly growth since 2006.
There are several reasons behind this increase. One of them is bigger number of people working remotely, as now they know they have to purchase bigger home-office spaces, and one of the ways to get this is to buy a bigger home in Milwaukee. Also, mortgage rates remain at historical lows, and home buyers want to take advantage of them. All of this is something that will most likely remain in 2021, as well.
So, if the current conditions hold for the next year, this will probably be good for many home sellers. However, market is more sensitive than ever, and just one wrong move can mean you’ll lose thousands. Still, it seems like there won’t be any best time to sell your house, at least if we’re talking about seasons. You have to take close look at the local conditions before making a decision to list your Milwaukee property for sale.
What if This Isn’t the Best Time to Sell Your House the Traditional Way?
If you have done the math and figured out 2021 isn’t the best time to sell your house, don’t panic. There is still a way to get rid of that unwanted property or to get the finances you need. What you need to do is avoid listing with an agent and work with a local direct buyer instead.
Why are direct buyers a better option in times such as these? First off, direct buyers don’t depend as much on market conditions as traditional buyers. Their job is to purchase houses, so loss of finances doesn’t impact their decision to sell as much.
They will purchase a house as-is, no matter its condition. While this will influence the price of the sale, it won’t change their decision to buy. This also means you can sell your rundown property without investing in repairs or upgrades. This means less preparation costs and faster the process. Many direct buyers won’t even require an inspection!
While we’re at ‘fast’, direct buyers can purchase property and close the sale much faster than if you were working with a real estate agent. This is because they’ll deal with most paperwork and processes, so you can just sit and relax while waiting on your sale to close. Not to mention that you’ll save on holding costs!
Direct buyers also pay in cash. This means you’ll get your money much faster than when working with a regular buyer. There is no mortgage approval and the sale isn’t likely to fall through, as well.
Finally, unlike real estate agents, direct buyer’s don’t deal with as many people on a daily basis. They’ll have the time and will to dedicate time to you and listen to your needs, problems, and requirements. Most of the time, you’ll even be allowed to rent your former house until you find a new place to live in, or the sale’s date can be moved to accommodate to your needs. This isn’t something you can expect when working with a real estate agent.