Some people say the right time to sell a house is during a particular season. While this is true, plenty of other factors help you decide. The most important one is housing market trends.
Let’s say you recently put your house on the market. You decide to price it slightly lower than the comps to get an edge and also because you have mostly done cosmetic repairs. A month goes by, and you don’t get any offers. It’s spring season, considered ideal for selling your house, but you haven’t received a single phone call for a showing. Why?
It’s because the mortgage rates are too high, and with too much inventory, there’s a lot of competition. The market has many buyers, but due to low affordability, now many people are browsing online listings.
The best time to sell your house is when inventory and interest rates are low, and buyer demand is high. This a great combination of factors that made 2021 a hot selling market.
Since the pandemic, things have been going downhill because of rising mortgage rates. The first three months of 2023 were a wild ride, but there’s been a small decline in recent weeks. According to Mortgage News Daily, the average rate for a fixed, 30-year mortgage is 6.16%.
The Fannie Mae Home Purchase Sentiment Index revealed that few people believe house prices will fall in the next months. However, they are not concerned about not being able to buy Orlando real estate because they have stable jobs.
Two Factors That Allow You to Sell Your House for a Profit
The one thing that entices buyers to start searching for a house is low-interest rates. This ensures that their monthly payments will be affordable. Of course, they will need a good credit score to convince the lender they are a reliable borrower, but that’s another story.
When interest rates are low, buyers enter into a bidding war. So, even if you have priced your house low or just right, you will likely make a huge profit. Buyers will try different tactics to ensure the seller picks them. This includes writing a personal letter to show their appreciation, agreeing to your terms, and not asking for any incentives.
When inventory is low, demand is high. For example, if there’s just one house “For Sale” on a block, you will get more offers, and buyers will be willing to pay whatever you quote. In fact, your house will sell faster.
Now that you know what helps you sell your house, and that too for a profit, start staging your house. Even if you are in a hurry, now is a better time to put your Orlando real estate on the market. The market is pretty volatile, and no one knows whether mortgage rates will rise or fall. Since the inventory is low, appraise your house to find its exact selling price so you can set the right asking price.