Sellers if you’re pondering, “Should I sell my house now?” amidst market uncertainties, you’re not alone. This common query reflects the complexity of home selling. After all, selling your home is a big decision, and there’s a lot of uncertainty out there in the housing market. However, the fact that you’re asking questions means you’re thinking about your situation and determined to make an educated decision.

So, let’s dive into the considerations you should make when deciding whether to sell your home.

Houses are just like produce, bottled water, or anything else.  When strawberries are in season in Tennessee in May, you can get exceptional quality strawberries for a good deal; however, in December they are almost twice as expensive and the quality is worse.  This is due to the principle of supply and demand.  When supply increases, the demand will decrease and when demand decreases, so do prices.  This principle applies to real estate too, impacting the best season to sell a house. Just as concert-goers pay premium for food, buyers might pay more for homes when demand outstrips supply. When there’s not enough houses, people with money are willing to pay more to get one…and the prices have reflected that from 2021 to current day.

As of December 2022, the increase in homes for sale—by 244,000—highlights a shift in the market, offering insight into whether now is a good time to sell, marking a growth of 54.7%; however, even with this improvement, the number of homes available for sale is still a concern as it is over 30% lower than the average from 2017-2019. In East Tennessee, there has been a consistent rise in prices over the last 18 months. Unlike other parts of the country, prices in East Tennessee have not decreased, and they are currently higher than they were in the previous year. With the current low supply of homes, it is expected that the prices will continue to rise, as has been the trend.

As supply is increasing, the growth of house prices across the nation is much slower than in 2021, and as supply increases the market will balance out. Therefore, when it comes to the question of whether to sell your house now or wait, the answer may not be a straightforward answer. The current market conditions may be favorable for sellers, but your decision should also depend on your personal situation, because here in the Johnson City, TN area we have a severe shortage of housing and I have heard local estimates around 5 years behind in building.  So, this means that prices will likely continue increasing; however, it may not be as fast or as consistent as it has been for the last few years.

To navigate your decision on the optimal time to sell, consider these home selling tips, detailing seven critical factors which might help you decide if you should sell your house:

1. Understanding Home Equity: A pivotal selling property advice is assessing your home’s equity, having equity in your home is the main concern, and rightfully so!  This is what people are referring to when they use the term “being upside down” in their mortgage.  Simply put, if you owe more on your mortgage than you could sell your house for, you have no equity.  Alternatively, if you can sell your house for more than you owe on the mortgage, you likely have equity.

2. Your home no longer suits your needs: As your family grows or your lifestyle changes, your current home may no longer be suitable for your needs. Perhaps you need an additional bedroom, a bigger yard, or a more modern kitchen. If your home no longer meets your requirements, it may be time to sell and find a property that better fits your needs.

3. Financial Considerations: If managing mortgage payments becomes challenging, selling your home could offer relief, aligning with strategic home selling tips. If you’re struggling to keep up with mortgage payments, property taxes, or other expenses, home selling can provide a way to alleviate financial stress. Selling your home can help you free up equity to pay off debts or downsize to a more affordable property.

4. Your home needs significant repairs or renovations: If your home is in need of major repairs or renovations, selling may be a more practical option than investing in expensive upgrades. Buyers may be deterred by significant issues like a leaky roof or outdated plumbing, making it difficult to sell the property at a fair price.

5. You want to downsize: Many homeowners reach a point where they no longer need a large home and want to downsize. This can be a smart financial decision, as smaller homes generally have lower property taxes, insurance costs, and maintenance expenses. Downsizing can also provide an opportunity to declutter and simplify your life.

6. You’re relocating: If you’re moving to a new city for work or personal reasons, selling your home is likely a necessary step. Trying to manage a long-distance rental property can be difficult, and selling your home can provide you with the funds you need to purchase a new property in your new location.

7. Assessing Market Conditions: A critical aspect of selling property advice involves evaluating whether the current market dynamics favor sellers. It’s essential to assess the current state of the real estate market. If demand is high, and inventory is low, you may be able to sell your home quickly and for a higher price than you would have otherwise. Keeping an eye on market trends and speaking with a real estate professional can help you determine if it’s a good time to sell.

How much equity is enough before you sell your house? At the very least, you want to have enough equity to pay off your current mortgage, and cover closing costs bare minimum.  Obviously, more is more and in this case…more is better;  however, this will vary and depend on the totality of the situation.