It’s easy to forget about the less exciting aspect of selling or buying a house. You need to prepare for moving 10 years worth of stuff to your new home if you plan to sell your house.
The following article will show you how to save significant money by timing your move correctly.
These unknowns and those that happen when you least expect it can create a dizzying array of starts and stops. Not being able time your move correctly can cause stress and even cost you money. As with many other things in life it can pay off to have the right timing for your move.
Without the right facts, it is impossible to time your home sale and the inevitable move. We’ve done all the research to help you. Now, synchronize your watches, and continue reading to find our top tips for timing your moves from start to finish like a pro.
How to crack the code of the best time to sell and purchase a home
Before you start packing the boxes and popping bubble wrap, it is important to determine when you want to sell your home. It is a well-known topic. Although there are many informative articles about the topic, this one we wrote focuses on one variable: Most home sellers are buyers.
According to the National Association of Realtors, only about one-third of 2017 homebuyers were first-time buyers. The majority of homebuyers face the challenging task of coordinating the sale of their home and the purchase of their next home. For most homebuyers, this means that they must also determine the best time for them to buy.
As you might have guessed, timing is not always in your favor. It is possible to sell or buy depending on where you live and how flexible you are with your move dates.
The conventional wisdom says that selling in the spring or summer is the best, before the first school bell rings of the season, and buying in winter is the best, because there is less competition.
The current real estate market is not conventional. It’s true that home sales activity is still dominated by the spring and summer months. However, inventory has been steadily declining over the past few years, which has closed the gap between what was once a widening gap between home buying and Selling House.
Remember that each market has its own home-buying season. The most active markets are those in warmer areas, like Phoenix and Las Vegas.
A simple and powerful way to determine the best buy/sell scenario for your business is to analyze demand using median market days and the inventory available. Based on data from Realtor.com the heat map below shows a selection market served by Selling House. It illustrates how the window to sell is getting wider over time and puts sellers in reach of the perfect buying season.
A good time to sell is when there are more listings every month in fast markets (the boxes that show the light grey and blue colors) These months are characterized by high buyer demand and fewer homes that have been on the market for a long time. This makes it more difficult for buyers to negotiate a price reduction.
You might consider buying in markets that have low levels of inventory, where homes have been sitting for months. This will increase your chances of getting a deal.
The chart below shows that October is a great month to sell, based on market trends for 2017. For example, in the Twin Cities the median days on the market for October 2017 was only about one week longer than the peak selling period of May 2017. Homes in Minneapolis-St. Paul kept turning at a rapid pace with 42% new listings in October.
The heat map shows that accepting an offer to sell your home in October and closing your deal in December is the best time to purchase in the Twin Cities. This is because the days on the market for 2017 increased by three weeks, and 73% had inventory older than 30 days by December.
Phoenix and Sacramento are warmer markets. The selling season extends through November. There is a sharp rise in median days on the market and an increase in stale inventory. This increases in December and January the next year.
This sell/buy scenario is also perfectly synchronized with the most cost-effective time for moving.
The best time for you to move is the best time for you to buy
According to the Current Population Survey, approximately 35 million Americans move each year.
MovingLabor.com states that peak season typically runs from April through September. Website MovingLabor.com created a heatmap that showed moving demand from “busy” up to “pandemonium”. It found that 20 days of June 2018 were likely to have pandemonium-level busyness. Every weekend between May and June 2018 was expected to see moving demand at “pandemonium”, with the last weekend consistently ranking among the most busy for moving companies.
These are not necessarily the most accurate and may vary from metro to metro. The demand for movers will be less intense in metros that have less severe winter weather. This is because the home-buying season and selling season are more diffused in these areas. Although it might seem possible that the supply-demand scenario could completely flip in certain areas due to extreme heat, the numbers show that the markets peak in the summer even though it is 115 degrees.
Many of these people are relocating college students, seasonal workers and renters. However, the main culprits are home-buyers. You can see the connection between real estate seasonality, moving company demand by comparing monthly home sales volumes with trends in U.S. Google search for “moving companies” as illustrated in the graph below. This graph is based upon data from the National Association of Realtors. Timing your move to avoid peak season is a good way to save money.
According to HomeAdvisor.com, the average cost of moving depends on distance, size, and level of service required. It can be as low as $200 up to almost $9,000 depending on your needs.
You can save more money if you do your own moving. The best way to save money on your move is to schedule it between Labor Day and St. Patrick’s day. This is basically where all the dark blue boxes are listed on the “Best Time To Sell” table.
Mymovingreviews.com estimates that moving companies will reduce their prices by up to 30% due to the drop in demand in the off-season. You can save even more by avoiding the end of the month when most leases expire and when home sales escrows close. Don’t forget about negotiating with movers. Prices are naturally lower in the off-season. However, the lack of demand increases competition among moving companies. This gives you more leverage to determine how low they will go.
Here are some more ways to save
Moving in the cooler months not only saves you money on moving costs but also allows you to save serious cash on remodeling and repair projects. Construction is susceptible to seasonal fluctuations in demand. Remodeling projects are a popular investment for homeowners who plan to sell their homes this summer. This will increase the value of their home and tie up the existing tight labor supply.
Because of the favorable weather, contractors are often in short supply in the spring and summer months. This is because the weather is ideal for long-term projects like new home construction. Housing starts have a clear seasonal pattern. They peak in June and July, and then bottom out in December, January and February. This leaves many contractors and construction workers hungry until Memorial Day.
According to a Consumer Reports study, this is a time when labor is more plentiful. You can also get better deals on major appliances. The average refrigerator price dropped by nearly $250 in November 2016 when compared to the peak price in May 2016. Consumer Reports also found significant discounts on the peak prices of TVs, ranges, and dishwashers during the fall.
Although it may sound too good to be true, almost every aspect of home buying and selling, moving, remodeling, and renovation is cheaper from October to February, according to our research. It is not surprising that most people move in the summer. It’s safe and sunny, the children are at school, and it’s not too stressful to move during holidays.
Most of these reasons can be attributed to personal preference. The most difficult task is to time the sale of your house and the purchase of the next one, which can be more complicated than weather or school schedules.
You might be able negotiate a leaseback with your buyer, or an extended escrow period. Sellers still have the upper hand in many markets across the country. These tactics can have negative consequences and cost you a lot of money if you decide to move later in the season.
There are many options available for buying and selling a home. This gives you the flexibility to move whenever and wherever you want.