Ideally you want to sell high and buy low, but unless you are an investor, this is not always practical. However it does help to be aware of the economy because changes within local and national markets can affect property prices and the cost of living in general. For example, when the economy is doing well and interest rates are low, demand for property is generally high and this in turn pushes prices up. By the same token, when inflation is low, investors may be more attracted to the stock market that could also lower the demand in the property market. Industry successes and failures can also have a knock-on effect – the closure of a factory could mean the loss of jobs and hence a dive in house prices in a particular region.
Traditionally, beginning of the year is supposed to be the best time to sell and end year is generally ok, but many other factors come into it. For example if you live in an area which attracts potential investors, the best time of year to put your house on the market may not be a concern anymore. Conversely, if in winter fewer houses are on the market in a location that is in demand, the prices may be higher than in another season when a larger number of houses are up for sale. This is where a good real estate agent who is familiar with your locality can be invaluable.
As the sale of your property is likely to be the biggest transaction you may ever make, don’t sell in haste! If you feel under pressure to make a sale on your property, it is far more likely you will accept a price lower than the true value of your home. Do your homework and find out what similar houses in your area have sold for in recent months (this information is now easily obtainable through Propertyguide’s sale history feature). Look at the economy to see whether the market is slowing down or speeding up. It can be tempting to rush the sale of your property because you have found the house of your dreams, but selling on a whim or without knowing what’s involved could lose you thousands in your asking price or even give you headaches with your newly purchased property if you have not taken the time to check everything out.