Having 4 decades of experience in the real estate industry, I think we should evaluate and discuss the data from ATTOM Data Solutions in which they concluded late spring is the best time to sell. Their data, which is ONLY based upon a 10 year review 2011-2021, indicates May is the best month to sell a house, with the conclusion that homes sold in May net a 12.6 percent seller premium.
It is important to note this 10 year analysis began AFTER the great recession of 2008 during a period of robust growth, and before the market flat lined for a period of time in 2022 at which point we saw Opendoor and other companies lose millions, and in some cases, billions of dollars and the stocks of big box real estate brokerages plummet. A more insightful analysis would have incorporated the last 20 years.
IMPORTANT FACTORS TO FOR A SELLER TO CONSIDER INCLUDE THE FOLLOWING:
- Marketability based on the number of units currently on market. In Ohio there are significantly LESS UNITS on market than were available this time last year. The less availability-the greater the demand-hence greater the price. This evidenced by the continuation of multiple offers with appraisal gap language and contracts being accepted and closing well above list price throughout the state.
- Example: I listed a property in Richfield Ohio on 01.12.2023 and closed it on 02.06.2023 for $33,000 ABOVE LIST PRICE. Clearly, this was NOT during spring market, however it provides a basis point for acknowledging that while most activity occurs during spring market, it is not necessarily accurate to assume the highest and best price will be obtained during that time period.
- Interest Rates. As interest rates continue to climb it may have an adverse effect on a Buyer’s ability to purchase, especially if the Buyer is already carrying an extraordinary amount of debt via an auto loan, credit cards, medical, student loans and more. However, it is important to acknowledge that over the decades the government has continued to increase the debt to income ratio allowance and recently they have required lenders to disregard certain debts carried by the Buyer. The loosening of restrictions allow for greater opportunities for the Buyer, however it should also be noted that said opportunities also carry greater risk of default. Additionally, many Buyers have additional cash set aside for generous downpayments, which is a motivating factor for a lender to consider when dealing with a Buyer that may not meet their standard criteria. Portfolio loans may prove ideal for a Buyer unable to qualify for traditional financing.
- Timeline. Time is Money and the Seller needs to set the timeline. Life events, career changes and more play a significant role in determining when a Seller will choose to place the home on market.
- Expense of marketing a home. Seller must also consider the costs associated with selling their home, the greatest of which is marketing. A For Sale By Owner Seller can SAVE THOUSANDS OF DOLLARS in real estate commissions with the Flat Fee MLS Listing options offered by Ohio Broker Direct.
A serious Buyer must remain in tune with the market at all times, if they wish to ensure they will not miss out on what may be the perfect opportunity to purchase the home of their dreams.
Joan Elflein, Broker / Ohio Broker Direct
Ohio Broker Direct & its Brokers or Associates assumes no responsibility or liability for any errors or omissions in this blog, we advise all participants in buying or selling real estate to enlist the services of a Real Estate Attorney.