Spring and Summer are always very busy months for the real estate industry in Orlando and across the country. It is the perfect time of year for people to make a move when they have time off for vacation or school. As we head into the busy season, I want to give you some tips for selling a home in Orlando. Even if you are not planning to sell this year, these tips always ring true.
Part 1 of the Selling Your Home Series is learning when the time is right to sell. There is no magic time to sell your home. Some would argue that Spring and Summer are the best because there are lots of buyers in the market; while others would argue Fall or Winter are excellent times to sell because there is less competition from other sellers. The most important thing to think about is Why do you Need or Want to Sell?
The market has improved quite a bit in 2013 (almost 19% in the Orlando area from Feb. 2013 to Feb. 2014) and certainly is on the way back up from the low point in 2009. However, just because the market is turning doesn’t mean it is the right time for You. There are many opportunities for sellers in this market, but be sure you really need to sell before you spin your wheels. If you just want to test the market that is going to be a large waste of your time and energy. Selling your home (when done properly and actually getting is sold) is not an easy task. As your biggest investment, it should not be taken lightly when the time comes to sell. Be serious and prepare for the sale or don’t list the home at all.
Good Reasons to Sell:
Relocating for Work
- If you are relocating for work and do not have any ties to the area, then it probably is a good idea to just sell and move on to the next place. You could possibly rent but that might not make sense if you have no intentions of being in the area again in the future.
Need a Larger Home or Prefer to Downsize
- If you are considering selling to buy something larger – well that is a good plan at the moment! The market has improved and is headed up, so if you’re buying a larger home that will be more expensive then it makes sense to sell and buy up now. The larger homes will get pricier as the year goes on along with interest rates. Get your current home sold now and buy a new place while the market and rates are still affordable.
Bad Reasons for Selling
You have heard the market has improved and want to get out while you can.
- To this I say, consider what the alternatives are. Rental prices are very high right now as well. If you are considering selling in order to rent – that probably doesn’t make sense. It is still cheaper to buy in a lot of cases, so as long as your mortgage payment is less than the rental price you would pay for a similar home – it might not make sense to sell. Check out this buy versus rent calculator to see if it makes sense to buy after you sell.
Relocating and You are Under Water.
- The rules for short sales have drastically changed. There has to be a legitimate distress in your life to qualify for a short sale. If you are under water and need to move for work, consider leasing your property until you have the proper equity. If you can rent the property and cover your expenses or make some money then that is the obvious choice for now. Revisit selling in another year or so. If the market continues to increase, you could gain another 4-5% in equity which could put you into a selling position.
All in all it is a very personal decision and being that it is most likely your largest investment, consider all the facts and alternatives before you list. Learn what the market value is (not through an online estimate!), discuss with your financial planner, and talk about tax implications with your CPA. The first step is learning the true price you can expect to earn for your home, contact us today to find out and get started on your search for a new home!