When it comes to selling and buying a home a primary factor to consider is timing. The process of selling and buying a new home is a huge task that involves a lot of emotions. It can be fun and exciting. And, it can also be stressful and a bit scary. Indecision can also creep into the mix. But, there's no reason to second guess yourself if you ask the right questions.
So, when is it the right time to sell a home and buy a new home? The obvious answer to this question is that there is no right or wrong answer. It has to be right for you. Ask yourself why are you selling your home? Are you relocating, upsizing, downsizing, want to move into a master-planned community, build your forever home, or move into a new school district? Or, do you want to live in Austin, Texas, the #1 place to live in the U.S. according to U.S. News and World Report? These are all valid reasons why people move and go through the effort to do it. If you know why you are moving then it will be easier to go through the selling process and help you narrow the search when you look for a new home.
However, selling and buying a home is more than just hiring a realtor to put up a "For Sale" sign. Or, take you to listings and new home construction builders. Selling a home is a strategy that involves the element of time in a multiple of ways. The time of year, whether it is the right time financially, and how much time should you allow yourself to find another home are all factors to consider. So, let's take a closer look.
Financial timing and costs
Again, reflect back to why you are selling and buying a home? Can you afford to sell your home and buy a new home? Financially, the process can be expensive. There are both selling and buying costs that people tend to forget about. According to Zillow selling costs can range anywhere from $10,000 to $55,000 depending on what part of the country you live in. The bulk of the costs are realtor commissions, closing costs and legal fees. The going rate for realtor commissions is 6% but remember it is ok to negotiate. Other additional costs that can add up include loan payoff costs, title insurance fees, transferring and recording fees, unpaid homeowner association fees, and inspection fees. But, wait, there's more. To get the most money for your home ensuring it shows well is imperative. And, that means it needs to be in tip top shape. Hiring service professionals such as painters, landscapers, and carpet cleaners can payoff in the end yielding you more money in your pocket.
Now, buying a home. The first thing that comes to mind when buying a home for most people is finding the right mortgage. The strategy here is knowing what you can afford. Keep in mind you don't have to spend what you can afford either. As with selling a home, there are multiple costs involved when buying one. Buying costs can vary depending on if you are purchasing an existing home versus buying a new construction home. Costs involved in buying a home include fees for homeowners insurance, title insurance, appraisals, escrow and survey fees and more. Knowing and budgeting for these fees are essential before buying a home.
When is it the best time to list your home?
The best time to list your home is when it is the right time for you. Having your ducks in a row matters more than trying to list a home when you aren't ready. But, knowing more about the Austin housing market wouldn't hurt either. The Austin Board of Realtors publishes a detailed monthly report outlining the Austin market that may help you with your strategy. However, warm weather, and school schedules tend to drive housing sales in the Austin area. The best months to list a home in Austin is in May and June. The month of May ranks #1 as the month that yields the best results. But, it is Austin and the temperatures here are moderate most of the time. So, if there are reasons why you need to list your home at another time of the year, don't wait just because the "right" month isn't cooperating with your timeline.
Timing the selling of your existing home and the purchasing of your next new home
There are two questions to consider here. One, should you purchase your next home first and then sell your current home? Or, two, should you sell your current home then purchase your next home? If you are living in an area where it's a buyer's market, mortgage companies strongly suggest selling your home first. On the flip side, if you are living in an area where it's a seller's market you should buy a home first. And, since we are talking about Austin, the 6th hottest jobs market in the country, then by all means, purchase your next home and then sell. If you are building a home, then of course, there's a lot more to consider, and again, it comes down to timing. The average time it takes to build a new house is 10 months. So, map out a strategy of when you want to be in your new home and go backwards from there.
Looking to buy your next home?
The master planned community of Travisso offers something for everyone including a wide range of home sizes in multiple price ranges to accommodate all lifestyles. Homes range in size from 2,000-5,000+ square feet with price ranges from the $350s to over $1 million. Travisso is a place to explore; a place to relax; a place to call home. With over-the-top amenities, fabulous home designs, natural beauty, and the backdrop of the Texas Hill Country, what's not to love? Visit Travisso for more details or contact our information center at 512-243-8583.