What Is The Best Time To Sell Your House?
One of the most common questions in the real estate industry is: when is the best time to sell a house? We’re going to use real market data and step by step guidance to answer this question.
Questions to Ask Yourself:
1.) What is your ideal move? Are you truly flexible and could sell anytime of the year? The best time to sell is when you’re ready to sell.
2.) Who is your likely buyer? Do you have a family-sized home? Do you live in an area where people move for schools?
a.) If schools are an attraction for your neighborhood, then likely the best month to sell a house is spring, but see below for stats.
b.) If your property has other key factors that would attract a buyer, other than schools, then you may look at that market data below to get your answer.
3.) What do you mean by BEST time to sell? There are many substantial factors to consider and you must make sure they are in your favor so you can get your desired outcome.
Is the current market in your favor? Buyer or seller market?
You need to understand the current market. If it’s a buyer’s market, it’s going to be harder to sell. To understand where the current San Jose market is today, visit the market stats page on my website. To understand if it’s a buyer or seller market and the significance of the Days of Inventory, read up on this topic.
If you live in the San Jose area and want to know specifically about your community of San Jose or a nearby city, you can go to my website to look at the market stats and there you can refine the data to your specific neighborhood.
In the San Jose area, it’s been a sellers’ market since 2012. The intensity of the sellers’ market changes some with different seasons. In late summer and winter, the market can move closer to neutral, but we have not had a true buyer’s market since 2011.
Looking for the Highest Price?
Are you wondering when to sell and get the highest price? If you look at the below chart (orange and blue lines are prices), you’ll notice that San Jose tends to get higher prices in the middle of the year, around June. There are years that are slight anomalies with peaks in May or July.
To anticipate when prices might peak, you must study other market statistics and factors. Reach out to your agent who knows the market and can guide you with REAL market data.
When looking at the price peaks, note that these stats are recorded when the sales are closing, so you must back out the time to LIST the property on the market. Sales that close in June, were in contract likely 30 days before that, meaning they listed their property in late April, early May, exposed the property to the market for 1-2 weeks or more. To get the highest price (in a traditional June price-peak year), list your property on the MLS in April or early May.
Looking for the Quickest Sale?
Another important factor when it comes to quickest sale is how well you prepare your property in San Jose area. Preparing your property for buyers to move in is important. Buyers expect quality and move in ready. Buyers don’t want to see a lot of repairs, fixes, old furniture and personal property that is yours. Buyers want to imagine themselves moving right in.
Are you wondering how you can increase the value of your home? Watch the 8 Improvements to Increase the Value of your home video.
4.) What is the worst month to sell a house?
The San Jose market has more competition (inventory) in the summer months. Inventory traditionally peaks in the summer, but sales have already started to go down in July and August. Remember what was discussed above under timing for the highest price? Sales that close in June, were in contract likely 30 days before that, meaning they listed their property in late April, early May, exposed the property to the market for 1-2 weeks or more. The decrease of sales shown in July and August are closed sales, meaning buyers actually slow down their purchases in June/July.
Summer is a difficult time to sell because a lot of buyers are traveling or living different schedules day by day, especially August.
Another worst month to sell a house would be December because there are less buyers out shopping traditionally.
BONUS: Download my Home Seller’s Guide.