Rising interest rates with historically high home values have turned the seller’s market of early 2022 in a more balanced, maybe even buyer’s market. The conversations between sellers and Real Estate Agents is very different now and will be going into 2023. While timing the real estate market isn’t exactly going to guarantee your home sells for more, the market does come in cycles. It’s possible to choose a better time of year or even a better time in the cycle to sell compared to another time. You won’t need to sit and wait for the perfect week or even the perfect month – those days are over – but after buyers have adjusted to the higher interest rates, choosing the right season can be a good way to start if you want to time the market right.
What you’re looking for, as a seller, is a seller’s market. This means, there are more buyers looking than an available inventory of homes. When fewer homes are available, buyers will compete over those available homes. Time the sale of your home during a seller’s market and you can expect to sell for a higher price. We have had a seller’s market since 2016 or even before; the pandemic transformed it into an insane seller’s market. That came to an end this past July.
If you’re looking to buy a home, you’d be looking for the exact opposite. When there are more homes than buyers, you get a larger selection and sellers often have to make concessions if they really want to sell. Higher interest rates will make it more difficult for some buyers to qualify, however, with rising inventory, buyers will be more in the driver’s seat again when negotiating offers.
Here are a few tips to help you better time the real estate market.
Tip #1 – Become a Local Expert or Hire One
If you want to sell in a seller’s market and buy during a buyer’s market, you need to become an expert in your local market. The other option is to hire an expert real estate agent in your local market. This will give you someone with a deep understanding of the right time to sell and the best time to buy.
Tip #2 – Don’t Follow the Crowd
The smartest real estate investors always seem to buy when everybody else is selling and sell when everybody else is buying. They know how to time the market and they simply do the opposite of the masses.
Typically, people sell out of desperation when investors are buying. This helps to ensure a lower price and we saw this back in 2008 when the market wasn’t strong. In addition, when times are good and plenty of buyers are seeking new homes, this is when the smart real estate investor cashes in by selling the properties they bought during the recession.
Tip #3 – Have Your Team Ready
You want to know who you will hire as your agent, where you will get financing and all the other team members you will need before you decide to sell or buy. Your agent will likely have connections for an appraisal and home inspection, but you want to have your bases covered on all fronts. This will guarantee you can make the move when it’s time without any delay.
Use these three tips, along with the help of a local real estate agent and you can time the market for both buying and selling.