Buying and selling a home is one of the hardest decisions to make. Most homeowners admit making this call due to an unexpected life or financial factor other than informed real estate forecast.
At one point or another, we all get to ask ourselves if it is the right time to either buy or sell a property, right? Well, here are some essential guidelines to help you predict the best time to consider purchasing or selling a home.
Beware of the information in the media
Media channels are designed to sell the news. Flashy and bold headlines that always turn heads. These often make it easy for many homebuyers and sellers to fall prey while researching about current real estate affairs.
A news channel could report a lucrative forecast in the real estate market but this could not be the same in your local market.
For instance, if you read that Denver is in a house crisis, this could mislead you into second-guessing your decision to buy or sell a home even though the situation on the ground could not be that bad.
Luckily, Denver’s real estate market is stable and solid. Given that real estate statistics are highly variable, always plan to do your research and delve into the details of local listings. The more you narrow down the better.
Furthermore, we recommend having a chat with a trusted real estate professional on what the current local market could have in store for you.
Closely monitor mortgage rates
Mortgage rates throughout the U.S. today fluctuate around 2% and 5% making it the lowest ever in most states including Denver. This kind of trend entices buyers more than sellers.
For sellers, these low mortgage rates could mean increased interest in your listings.
Despite being cyclical, mortgage rates can sometimes be predictable and other times very sporadic. However, you should treat mortgage rates as a core factor before buying or selling a home. For professional help, we recommend that you seek more guidance from a trusted mortgage broker.
Avoid the seasonal trap
Survey reports show that most buyers tend to look around for homes during the warmer months. This increase in real estate transactions in spring can be attributed to many other reasons.
However, the fact is that buyers are always searching for properties throughout the year. If your home is in tip-top condition and priced reasonably well, you can sell even in mid-February.
Selling off-season often means having an upper hand due to less completion. This also beats counter intuitiveness that results from being trapped in the outdated seasonal assumptions.
The emotional factor
Humans are emotional beings. We are often run down by our emotions in almost every aspect of our lives. Marketers know this and are experts in exploiting these emotions to evoke buying decisions.
Buying a home and moving away from your family can be a hard decision to make. Let alone selling that house filled with so many memories. Ranging from happy times to very nasty ones, emotions always tend to influence our actions.
In this case, surveys show that emotions often block sellers and prevent buyers from finalizing a home purchase. Do not worry much when this happens, it is very normal and you should not beat down yourself for it. Perhaps, it is not the right time to take that broad step.
Go for it if it feels right
I know what you are thinking. It always feels easier being said than done, right? Well, it is because we always try to fight emotions with logic.
We are now even using algorithms and science to predict the market. Guess what? These indicators do not offer a 100% guarantee that it is the perfect time to buy or sell that home.
While these could have best worked for a particular market, they might not necessarily do the same for another. For this reason, we advise listening to your gut feeling in going for what feels right and makes sense to you.
To wrap this up, real estate is not a be-all-end-all type of market and you should take factors such as local market trends, emotions, mortgage rates, and many more into consideration before buying or selling a home. We highly recommend getting expert help while researching your local housing market to have an insider view of the same. This will be very handy in predicting the perfect time for either selling or buying a home.