Selling your house is not a decision to be taken lightly and there needs to be a lot of thought and consideration before you make the decision.
Here are some factors to consider when deciding whether it’s the best time for you to sell your house
The State of your Finances
Personal finances are the leading factor that should drive your decision on whether to sell your house. If you have equity in your property that can be used as a deposit for the next home, then moving up the property ladder could be a good decision for you.
If however, you owe more than the property is worth then it is not a good time to sell and you should rather wait until the market price of your property rises or a significant amount of equity has been paid into the mortgage. Selling a house and moving requires a large amount of cash to cover the multiple costs involved so consider whether you have a healthy cash flow.
Another personal finance factor to consider is whether you have enough money saved to cover any work that needs to be done to your existing property before selling it as well as work that is needed on a new property you are potentially going to buy.
The Mortgage Market
Before you decide to sell a property and buy another one, look into what mortgages are currently available to you when buying your next property.
The mortgage market may have changed since you last applied for a mortgage. Seek advice from a mortgage advisor – you can get quick and free advice from 360financialservices.co.uk and also read a series of up to date mortgage guides.
Is there something happening in your life that requires you to sell your house? Sometimes, selling a property is dictated by what is happening in your life. It might not always be the best time to sell but when life dictates a change, you might have to go ahead nonetheless.
Example circumstances that might require you to sell a property and move include getting a new job, the need to upgrade or downsize and the requirement to live closer to your child’s school.
Seasonal Changes in the Housing Market
If you’ve decided you definitely want to sell your house, stop and consider the season before deciding when to sell. Certain times of the year are better than others when selling a property.
Winter can be a difficult time to sell due to Christmas so if you want to go ahead during the winter months, it is best to wait until January or February.
Springtime and summertime are generally favourable to sell although consider that during the school holidays, the market can go quiet because people are away on holiday or busy looking after their children.
Early Autumn can also be a good time to sell because the weather can still be pleasant and the garden still looks good. After October however, the market tends to slow down right through until after Christmas.
Trends in your Local Housing Market
Do some research to familiarize yourself with the current trends in the housing market in general and in particular the local property market. How well are properties selling in your area? Is there a lot of stock that isn’t selling?
If the housing market isn’t performing well, consider delaying putting your house on the market until it picks up. On the other hand, if properties are selling well and getting an asking price then it could be a good time to sell.
In conclusion, moving house is a major life event and before deciding to sell your current house, it is important to ascertain whether it is a good time to sell for you on a personal level – considering personal finances and life events, as well as in general – taking in factors such as seasonality, housing market trends and the mortgage market.