I just spoke with clients who are thinking about selling their investment property and it will take a little time to get it ready so they asked “when is a good time to sell?” That question is pretty simple but it does have many implications depending on what your position is. As a realtor everyday is a good time to sell since we do deals 365 days a year so let’s get it on the market and we will get it sold. That being said we can also talk about the days on market, and up times in the market, but selling a property is not a perfect science so just put it up on the market and it will sell.
When you take the point of view of a seller then you may want to sell in the high market to get top dollar and get it sold fast. However it may be better to wait until January 2020 to sell as the market does slow down into December so why put it up now? As an investment you may want to put it up now for the fact that investors look to buy before the year end to have the money invested and therefore not taxed in the year. Many investors find a surplus into the fourth quarter and want to have it invested before year end which in turn will make an investment property more appealing in the latter months of the year as opposed to the beginning of the year based on tax or investment issues.
Depending on your position and your property the time of the year will play differently for those looking for different outcomes.
Understanding this should play in the decision on when to enter the sales market. My clients’ property can go both ways, as an investment or a single family, and due to the location I would suggest it should be on the market now to be available for the year end buyer. If it does not sell then with a little change in the marketing we can make it look fresh for the January market to take full advantage of both the investing buyer and the single family buyer.
I sometimes forget that sellers are not aware of the historical market and future markets and that in the past January and September are usually the biggest months of the year for listing.
The thinking is that in January everyone has spenttheir Christmas holiday discussing their future and it is time to get out and buy a property. In September the kids are in school and everyone wants to make a move to get a new property before Christmas so the market takes an upswing. So depending on your goals you should be ready to list when the market takes an upswing but you should also take into account what type of property and who is looking to buy at what time of the year. V
Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at email@example.com.