For many people, selling a house is one of the biggest financial transactions they ever make. Whether it is your primary residence or a rental house, you want to make sure that you get the best deal possible. There are several factors to consider when it comes to getting a good deal, but one of the biggest is timing. Today, let’s explore how to capture the best returns on your investment.
Seasonal Variations in the Los Angeles Housing Market
The Los Angeles real estate market is booming at the moment, and you are likely to get a great price and sell your house fast, but there are definitely regional variations to keep in mind. The worst time to sell will depend on your unique situation, as different people have different priorities. For example, you may be interested in getting a high sale price and looking to maximize the amount of money you can get for your house; or, you may be more concerned about getting your listing sold quickly.
What’s more, there are regional differences both in terms of your area and your immediate neighborhood that will affect both the price and speed of sale. As a general rule, it’s also best to avoid any time that’s close to a public holiday, such as right before Christmas. The vast majority of potential buyers will be focused on other things at these times of year, so you are likely to get fewer inquiries.
Overall, the housing market is cyclical, with most sales happening between late spring and summer and the least sales occurring at the end of the year. Many buyers and listings in spring, which means a high turnover but also a lot of competition. In summer, there are fewer house sales but the buyers with children want to close quickly to start the school year in the new location. In fall and winter, the market is slower, but you may attract high-quality buyers who are serious about their offers.
Worst Times for Price
Predictably, the worst times to sell your home if you’re looking to get a good price is in January, February, and March. Very few people put their house on the market this early in the year, so buyers generally get an excellent deal, up to $70,000 better than they otherwise would. You are unlikely to get the best price for your property if you list at those times, so if you’re not able to sell before these months, it might be better to wait a little while longer.
On the other hand, it won’t hurt to contact your local real estate agent during these months, as they are less likely to be very busy and can get started planning your sale. Then your home can be one of the first out there when the buying season really begins. June tends to be the best month to sell in the Los Angeles housing market, and on average, sellers get over $36,000 more than they otherwise would if they sell in this month. This is in line with the California average. As mentioned, this is most likely because the volume is still high, but buyers with children want to close quickly so that they can settle into their new neighborhood before the school year starts.
Worst Times for Speed
It won’t come as a surprise that the winter season is also the slowest. While the average time on the market is 42 days in California, this rises to 48 in December and a staggering 56 in January and 53 in February. Listing your house in the worst months for speed means it is likely to be on the market for around three weeks longer than it would be had you listed it at a better time. This is both annoying and costly, so the three winter months are often better avoided to ensure a quick turnaround.
If you want to get your house sold as quickly as possible, aim for a May sale. This is the hottest month for Los Angeles real estate and there will be plenty of interested parties ready to make an offer. On average, homes in California sell 8 days faster in May than they would in other months. Because of the fierce competition among buyers, you are still likely to get a very competitive price for your real estate, even though this premium could rise if you waited until June.
Advantages of Slow Months
Although all the signs may be pointing at a May or June sale, this is not always the best choice for everyone. Remember that all of these figures are just averages, and your situation could be totally different. Some people enjoy a more relaxed experience with fewer, but more serious buyers. In such a case, a winter sale could be a good idea because the transactions tend to be easier and smoother. Everybody has plenty of time to make good decisions, and your real estate agent is likely to have more time to advise you and help make your sale stress-free.
If you are selling your primary residence, you’ll also be looking to buy a new property at the same time. In such a situation, choosing the slower months could also be advantageous. Even though you may get a slightly lower price for your listing, you will be able to take advantage of these lower costs when buying your new home. With this type of double transaction, it’s advisable to ask your real estate agent for guidance.
Consider Local Factors
A final consideration before deciding when to sell your home is the local factors. What looks like a great time to buy could be terrible for a specific location, for example, if the neighbors are taking advantage of springtime to do some building work or if a neighborhood’s streets are under construction. You want to show your property in the best light possible, so avoid choosing a time when you know there will be disruptions or issues in the surrounding area.
Remember that the timing matters, but there are many other important factors at play, such as the price you set, how you present the property at the viewing, and the marketing efforts you make. Your local real estate agent will know your neighborhood well and will be able to display your listing in a variety of different ways, allowing it to be seen by the maximum number of people. Although the month matters, hiring a competent professional to help you present all of the advantages of your home is even more important.
Selling your home is a big deal and you might want to avoid the slowest months in order to get the best and quickest deal possible. While the Los Angeles housing market is slow in the months between December and February, it speeds up considerably in the springtime, particularly in May and June, so you are likely to get the best deal in these two months.
Despite this, there may be regional variations or neighborhood conditions to consider. To ensure you have all the relevant information to make the best decision, contact Teresa Mack, your friendly and experienced Park View real estate agent. With her extensive local knowledge and professional service, you’ll be able to sell at the best price no matter what time of year it is.