Impact of mortgage rate trends
When deciding when to sell your home, mortgage rates are a crucial consideration. Lower rates mean more buyers can afford homes, increasing demand and the likelihood of a quicker sale at a better price. When rates drop from 7% to 5% (as they did to historic lows below 3% in 2020 and 2021), buyers see lower monthly payments, thus making homeownership more accessible and bringing more people into the market.
On the flip side, as rates surge, buyers wait out or struggle with the costs, dampening the demand. Heading into 2025, housing industry experts predict rates will exceed 6%, potentially causing hesitation among homebuyers and cooling market activity.
As mortgage rates influence buyer behavior, sellers must keep an eye on these trends. When rates are lower, you’re likely to entice more buyers and receive excellent offers.
Time your sale right with a top agent
Working with a top agent who knows the area can help you implement a timing strategy that will meet your needs. A realtor can also help you understand the quirks of your town, city, or county and help you achieve your goals, whether you’re hoping to sell fast or maximize price.
Agents can also help sellers understand what goes into preparing for a home sale, so they’re ready to hit the market at the right time with the house putting its best foot forward.
But before your agent helps you decide when to sell, you have to determine when to contact a real estate agent. Most agents have the same answer: as soon as possible. The more time they get to work with you, the more time they’ll have to prepare your house and meet your goals.
“Anytime that we have a four-week window before you’re looking to actually have the house hit the market, that’s how we can make sure that you’re most poised to sell in the least amount of time for the most amount of money,” advises Huerkamp.
Plan your target sell date
Knowing how much time to budget to prepare your home for listing is vital. It can help inform the rest of your timeline, whether that includes moving, buying another property, or renting. Preparations include completing any necessary repairs, staging the space, photographing the house, and actually listing it.
Then, you’ll have time between listing your house, getting offers, and accepting an offer. To find how quickly your house “should” sell, ask your agent about your area’s average days on market.
This statistic measures how long houses sit on the market before going under contract, and can change year-to-year and even month-to-month. In a seller’s market, homes can move shockingly fast. In a more balanced market, homes receive fewer offers and tend to sit on the market for longer. That’s why it’s important to consider local market conditions as you plan to sell.
The average days on market can also help determine if your home is priced correctly.
“What we typically tell consumers is anytime at your specific price point, if you’re on the market longer than the average days on market for your price point, then you need to do a price reduction of five percent,” Huerkamp says.
