There are good solid reasons to Sell your house in January rather than waiting until Spring/Summer.
Prices are still low for the next house you’ll buy. If you’re selling and buying, the timing really doesn’t matter that much as you’ll get about the same deal to sell as you will to buy. However there are a couple advantages to be had in January.
First, in January interest rates are still low each year from the Winter slowdown in sales. Interest rates are almost always at their annual highest in the Spring/Summer.
Second, if you are moving up to a bigger, better home then not waiting for the Spring bump in prices actually will help as when the whole market moves up something like 5%, the $300,000 house you’re selling moves up $15,000. However, when the $400,000 house you’re buying moves up $20,000 you’ll lose out on $5,000. So, you’ll likely save your family money by moving up in January rather than waiting for Spring/Summer. If you happen to be downsizing, then of course the opposite is true on the values but not the interest rates.
Third, in most years a higher percentage of the homes on the market sell in January each year than any other time of year. While certainly there are more homes sold in the Spring/Summer months, in January your house will be a big fish in a small pond!
Fourth, there are less buyers out there to compete with in January. Simple reality. The people out there willing to deal with the rain and early darkness reap the rewards of less competition on the houses on the market.
Well, there you have it… Play the real estate game to win!
