The following is part of our series of exclusive excerpts from REW One Member Mary Cleaver’s book, You Can’t Live in the Ceilings, a practical and easy-to-read guide all about buying and selling real estate in B.C. This excerpt has been modified slightly to fit our style guide and design requirements.
Timing.
“What’s the best time of year to sell — especially if I want to get the highest price for my home?”
I hear this question a lot and the answer is, it varies.
Spring typically attracts the most buyers. As the days get warmer, drier and longer, buyers begin to engage. But, this doesn’t mean you’ll get a higher sale price, because there are also typically more sellers or more competition for your home.
“Should I sell now or will my home sell for more if I wait until next year?”
Sadly, your agent can’t accurately answer this question. I wish I could. There have been countless times when economists or agents predicted a significant market change — and it didn’t happen. Economists, for example, didn’t foresee the 2008 U.S. subprime mortgage crisis, the COVID-19 pandemic or the rapid rise in interest rates and inflation that followed the pandemic.
A skilled agent can tell you what has happened in your local market, what usually happens, what’s happening right now and how prices are trending, but none of us can see the future. Agents sometimes make predictions and that’s OK. If you and your agent talk about future market conditions, just know that these are opinions and not facts. Don’t make critical decisions based solely on an opinion — even an educated one.
We all wish we could time the market to buy low and sell high, but unfortunately, that just isn’t realistic. Most people choose to buy and sell at the same time to protect themselves from market fluctuations they can’t control or predict.
So, if spring isn’t always the best time and you can’t predict future market conditions, here are some other factors that can affect your timing.
Seasonal considerations.
Elements including light, weather, heat, the school calendar and other factors can all affect how potential buyers see your home. As you consider what makes your home unique, the goal is to maximize the positive features and minimize the potential challenges.
Here are some examples:
- Air conditioning isn’t common in Vancouver (and many other B.C. municipalities). If your home has this feature, consider selling in the summer or early fall. The homes you’ll compete with will be seasonally warm. By comparison, yours will be cool and comfortable, which will stand out on a blistering day. This also applies to ground floor condo suites. Potential buyers will appreciate a cooler unit on an airless summer day.
- If selling an air conditioned home when it’s hot is smart, it follows that a southwest-facing corner condo on the 12th floor — with floor-to-ceiling windows that open just a crack — will show better in cool weather. Buyers will love all the winter light and they won’t feel the summer heat during viewings.
- Does your home face a busy street? Wet pavement amplifies road noise, so consider selling in late spring through to fall. You’ll have a better chance of dry roads.
- Does your home have a beautiful garden or patio? Consider selling in the late spring when you can maximize your home’s curb appeal and stage that outdoor living space.
Your next move could also affect the ideal timing. For example, are you buying another home in the same neighbourhood? If so, consider when you’ll have more properties to choose from when shopping for your new home. Inventory tends to build in the spring, drop during the summer, rise again in the fall and hit a low point in December and early January.
Whether to buy first or sell first, is another critical decision if you’re buying and selling in the same market. Most home sellers will also be buying a new home and will need the money from that sale to make their purchase. This presents one of the most difficult decisions you’ll make; whether to buy first or sell first. There are risks and benefits associated with both approaches.
If you buy first and the market shifts before you sell your home or the market doesn’t respond as favourably as you expected, you may have to accept a lower-than-expected price to avoid being stuck with two homes and two mortgages.
If you sell first, you may not be able to quickly find your next home — and prices could rise in the meantime. You could also get priced out of the type of home you want or have to settle for one you don’t love, just so you have somewhere to live.
Knowing the worst-case scenarios can help you make a decision that’s right for you. And with research and careful planning, you can mitigate the risks. It may seem unresolvable, but people buy and sell homes every day.
They make it work — and so can you.
