Waiting Until Spring to Sell Has Risks

This is the time of year we talk to potential sellers  who tell us they want to wait until spring to sell. This decision is normally driven by their understanding of the seasonality of the business or by escalating prices or both. If a seller is serious about selling, waiting six months may be a poor decision for a number of reasons.

Yes, fewer homes are sold over the fall and winter months and yes, average selling prices are rising. Buyer activity is still strong however and the momentum from the summer months is extending into the fall. A fresh listing coming to the market now will face less competition than in the summer months and the buyers this time of year are typically more serious. This buyer pool is about to begin shrinking however. Average mortgage interest rates have risen over a full percentage point from their lows and are expected to drift upward. Since most people borrow to buy a home, the increased cost of a mortgage reduces their buying power or may push them out of the market completely.

Much has been written in the national press about average selling prices rising at a healthy rate driven largely by the recovery of the excessively beaten down markets in the West and some potential sellers think that by waiting to sell their home it will appreciate in value. The recovery of prices here in greater Lansing has been above the historical norm of 3.8% but price increases vary greatly area to area with some even declining, Sellers need to analyze the carrying costs of mortgage payments, taxes, and maintenance and weigh those against what a small selling price increase would net a few months down the road. 

Our advice is that if you are serious about selling you should seriously consider listing now.