This question comes up at least once a week: People always want to know when the optimal time is to sell their home.
The best time is when inventory is exceptionally low and demand is exceptionally high. It all goes back to supply and demand. When there is strong interest and very little to choose from, we have a seller’s market. When inventory is strong and demand is mild, we have a buyer’s market. It’s best to sell in a seller’s market.
The answer may differ slightly in parts of the country where climate has great significance. Weather conditions in Southern California are totally unpredictable, for example. It can be 85 degrees one day and cloudy with a chance of rain the next. It’s nice to show your house on a warm, sunny day, and it’s always better to show a house with a pool when the weather is consistently warm.
In many family neighborhoods, school becomes a factor. Wouldn’t it be better to sell your home when schools are out on vacation? Well, most people buying and selling don’t have children who would be affected by relocation; they either have children who are too young for school or they relocate when their children have graduated and moved on.
One of the market changes that causes inventory to sit and grow is when interest rates are on the rise. Buyers back off, and houses take longer to sell. When there is uncertainty—political or economic—buyers tend to back off, also causing inventory to grow. Try to stay ahead of changes in the market and negative financial/economic issues.
My Parents Never Did That for Us
“Who is buying these expensive homes, and where are they getting the money?” I’m asked this question more often these days. I see a reoccurring theme where parents are coming up with a huge down payment or, in many cases, paying all cash. This is happening on the Westside of Los Angeles, for example, with homes ranging in price from $1.5 million to $4 million. You heard me right. How is this possible? Will the parents do this for each of their kids?
This answer is likely yes! Where did the parents get the money? Often, they are business owners or have sold a business, or maybe they own a portfolio of free and clear real estate-generating income. I had a listing for $1.5 million that generated 14 offers in 10 days, more than half of which were from kids (not really kids) supported by their parents, offering 50 percent down and even cash. Most of the young people you see moving in didn’t get there by saving their pennies.
If you’ve got the money to help your kids, great. If you don’t, they may just need to wait until they inherit your property or buy that winning lottery ticket.
For more information, please call Ron Wynn at 310-963-9944, or email him at Ron@RonWynn.com. To find out more about Ron and read his past columns, please visit the Creators Syndicate webpage at Creators.com. Copyright 2021 Creators.com