Should You Fix Your House Up or Sell Now?

If mortgage interest rates are low

Historically, sellers will find the greatest success when interest rates are low and more buyers are on the hunt. So, today’s higher rates will likely play a role in your decision of whether to sell your house now or wait.



As of mid-January 2023, average mortgage rates for a 30-year fixed loan stood at 6.48%, according to the Freddie Mac Primary Mortgage Market survey.

While the recent rate increases may seem significant, the current rate is actually still under the long-term average of just under 8%. 

If housing inventory is low

When supply is low and demand is high, selling your home can be more profitable.

The total inventory of for-sale homes in the U.S. remains relatively low. In November 2022, the housing inventory was estimated to be at 3.3 months of supply. A 6-months’ supply is representative of a balanced market.

But inventory levels appear to be shifting slowly. According to a Fall 2022 HomeLight survey of 1,000 top real estate agents across the country, 72% percent of agents say inventory is rising, a notable increase compared to 33% last quarter.



For instance, as recently as Q1 2022, 98% of real estate agents said that they were in a “seller’s market,” according to a HomeLight survey of over 1,000 top real estate agents in the U.S. For the past 12 months, more than 94% of agents have reported seller’s market conditions f their area. As of this writing, there are no serious shifts to report. (1)

If you need to relocate for a job or other life change

If the hand of change is knocking at your life’s front door, selling your home may be unavoidable. You may need to move for a job, a family medical crisis, or divorce.

If your home’s value has grown

If you have lived in your current home a long time, or if property values in your neighborhood have increased to the point where you have earned a significant amount of home equity, now might be a good time to look for sell my house fast Tacoma agents.

If you need to upsize

Perhaps you need more room because your family is growing. Or maybe an elderly relative or child must come to live with you. Maybe your employment changed and you need a home office. The need to upsize can play a big role in your decision to sell now.

If you can pay cash for your next home

Let’s say you’re relocating from Manhattan to a countryside cottage in rural Michigan. The proceeds from the sale of your previous home will enable you to pay cash for a residence in a less expensive market. The use of cash eliminates the concern of giving up your lower mortgage rate.

You can’t afford to keep your home

Because of changes in your income or other financial setbacks, selling your home now may be the only way you can avoid potential foreclosure.



If you’re in a bind of this kind, selling now may be wiser than waiting, given the economic uncertainty moving into 2023.

When to consider waiting to sell a home

Waiting to sell could be your best option depending on a variety of circumstances that can create unfavorable selling scenarios. The times to consider waiting might include:

If mortgage interest rates are going up

When interest rates go up, home values and offer prices can come down. That doesn’t necessarily mean it’s a bad time to sell; it just means you will want to carefully evaluate your selling objectives and consider if you might benefit from waiting.

If your move isn’t crucial

Yes, upsizing can be on both the “sell now” list and the “wait to sell” list. Is your desire to upsize based on a crucial need, or just because you think it would be nice to have the extra space? The cost to purchase a larger home now may become a burden, especially if other factors will add additional costs, such as higher interest rates or a lack of equity.

If you haven’t built much equity

Similar to evaluating your home equity when you’re considering trading up, you don’t want to move when your home is considered “upside down,” i.e., you owe more than the property is worth.

If housing inventory is rising

When supply is high and demand is low, selling your home may not be as profitable as you would like. Keep an eye on what’s happening in your market.

If you can’t afford to move

The recent rise in home prices can be a double-edged sword. It’s great when you’re on the sell side, but is it worth cashing out now if you’ll have to sacrifice those profits to buy high?

If you are not in a financial position to make your next home purchase, or if the cost of transitional housing is beyond your current reach, now may not be the best time to sell.

Conclusion

If everything in your life is lining up and you’re ready to make a move, then this is certainly not a bad time to sell your home.

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