Getting the best price possible when selling your property is not only determined by the overall state of the real estate market in your specific location, but timing can also play an important role. Research suggests that certain times of the year are better than others when it comes to maximizing potential offers.
This could be for a vast number of reasons, such as seasonal conditions, key tax rebate dates, or a movement in interest rates.
On a nationwide basis, the first couple of weeks in May are generally the best time to sell. More specifically, homes sell for $1,600 more than the average listing, and six days faster than the average closing time.
However, as the U.S. real estate space is so diverse, nationwide averages often won’t apply to your specific housing market. This isn’t just on a state-by-state basis, but regionally, too.
Here we explore five tips to consider when selling your home in August.
1. Have your home ready for sale before the school year restarts
One of the most important factors to consider when selling your home in August is the start of the new school year. Families prefer to start the home buying process well before August, as it gives them sufficient time to find a property, close the deal, and subsequently move-in with ample time to spare.
This isn’t always the case though, meaning that you might find that families are still looking to buy a property in August. If they are still looking then it is crucial that your property is ready to move in, in its current condition.
This means that you should resolve any potential issues with your property by making meaningful repairs and renovations. You’ll drastically increase your chances of landing a last-minute sale with family buyers if the home is ready to move into as it is.
2. Time the market
Timing the market can be a difficult task, not least because the best and worst times to sell will vary depending on where your property is located. The best way to try and unravel optimal listing times is to look at historical data that displays median home values, and median listing times before the property was sold.
For example, San Francisco, which is generally one of the strongest real estate markets in the U.S., often suffers from a dip in sales in the month of August. In contrast, certain areas within the state of Pennsylvania such as Hazleton, Scranton and Wilkes-Barre, experience an upsurge in sales in August.
Although you might be looking to sell your home in August, it might make sense to follow the market trend to ensure that you get the best price possible. This is where the experience of a local real estate agent will come in handy. They’ll be able to discuss the best time to sell a house, based on historical market conditions.
3. Weather conditions
Seasonal conditions can also dictate how much your home sells for, and how quickly you’re able to close. Buyers prefer to shop for houses when the weather is nice, but not too hot. If you live in an area that generally suffers from extreme heat in August, this could hinder your chances of getting your property in front of as many buyers as possible.
This once again supports the view that spring is generally the best time to list a property, as the weather is conducive for attending viewings. Once the nice weather starts to come to a close, most U.S. real estate markets experience a slow-down in sales. This is likely to have a direct impact on the amount you are offered for your property.
4. Keep an eye on interest rates
When the Federal Reserve adjusts interest rates, it usually has a direct impact on mortgage rates. When the rates set by the Fed go down, financial institutions are able to offer cheaper mortgages rates to buyers. On the other hand, when rates go up, you should expect your mortgage payments to rise.
This is also important for you as the seller, as high-interest rates can lead to a reduction in demand, as buyers are worried about the affordability of their new home. This is why you should keep an eye out for any potential rate hikes that the Fed might make. Fortunately, it appears that no more interest rate increases will be made for the remainder of 2019, so this benefits prospective buyers.
5. Avoid ‘iBuyers’ and “We Buy Houses for Cash” companies
If selling your home in August is an absolute must, you should avoid the temptation of using an “iBuyer” or “We Sell Houses for Cash” company. These entities promise to make you an instant offer on your property in return for cash, regardless of what state the house is in. However, although you will likely be able to reach your goal of selling your property in August, expect to lose a significant amount of equity.
“We Buy Houses for Cash” companies typically make a cash offer at just 80% of the property’s fair market value, although it has been known to be as low of 50%.
If you’re determined to sell your home in August, but don’t want to lose a big chunk of your home’s value, then we would suggest using an experienced real estate agent that has extensive knowledge of your local housing market.
All top-grade agents who have partnered with Clever have expertise in their respective housing market, meaning that regardless of seasonal trends, they’ll be able to find you a fast buyer at the best price possible.
You’ll also be able to save thousands of dollars on commission fees when going through Clever, as all Partner Agents have agreed to implement our industry-leading pricing structure.
This works at a flat listing fee of $3,000 or 1% if the home sells for more than $350,000. Although you’ll still need to cover the buyer's agent fees (which is industry standard), you’ll still make a considerable saving.
Provide guidance on how to time the market. Make recommendations on whether they might want to consider waiting to sell, emphasize that these trends can differ greatly from state to state, region to region (include a few examples, if possible). If they must sell in a less-than-ideal month/season, offer up tips on how they can get the best possible outcome despite the poor timing.
Recommend that homeowners looking to get the best possible price/outcome on their home sale partner with an experienced, local real estate agent for guidance and support.
Recommend that they reach out to Clever to get connected to a top-rated, full-service agent in their area who can help them get a great price and save thousands on commission, etc.