Today's housing market gives sellers a very clear upper hand. There's really no question about it. So, if you've been toying with the idea of listing your home, you may want to get moving sooner rather than later.
But is selling your home at this moment the best idea? While doing so could result in a nice profit, there's one scenario in which it could pay to wait.
The case to not delay
Right now, housing inventory is extremely sluggish, thereby creating a huge gap between buyer demand and available supply. That means if you have a home you're looking to sell, whether it's a property you live in yourself or one you own as a real estate investment, now's a good time to list it.
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Because there's such little inventory to choose from, home sellers are getting away with commanding sky-high prices for their properties. Plus, a lot of homes on the market today are landing in bidding wars, where one or more buyers duke it out over the same property, thereby driving its price upward.
Not only that, but some buyers are so desperate to purchase a home that they're willing to waive the right to a property inspection. To be clear, that's a very risky move. But it's one that could work to your benefit as a seller.
Imagine your home is older and you suspect it has underlying issues a buyer would want to be addressed before completing a sale. If your buyer waives their home inspection, that's not something you'll have to worry about -- or pay for.
Plus, there's a good chance mortgage rates will leap even higher over the course of the next year. Granted, right now, they're higher than they've been in over a decade. But borrowing rates have been rising steadily since the start of the year, and so far, home prices have held strong. If rates keep climbing, they might force buyers out of the market, thereby driving down demand and taking home prices down along the way.
The one reason it pays to wait
If you're looking to downsize your home or unload an income property, then selling now makes a lot more sense than waiting a year if your goal is to score a solid profit. But there's one scenario in which you may want to wait -- if you're looking to sell your home and upsize to a larger one.
Right now, any profit you make on the sale of your home is apt to be wiped out by the higher price you'll pay for buying a replacement home that's larger. But if you wait a year to sell and buy at the same time, you may find that the cost of higher-end homes comes down, especially if more inventory hits. And that situation might end up benefiting you more financially than selling today would.
What's the right call?
It's pretty easy to make the case that selling a home today is a smart move. But before you do, think about your objectives and whether you might be the exception to the rule.
