Knowing the best times to buy or sell a house gives you a chance to get the best deal. Housing prices vary by state, but they are rising across the country. Factors causing house prices to rise include low supply and rising demand.
Factors To Consider When Buying A House
Real estate experts will tell you that the best time to buy a house is when you’re financially ready to do so. If you can afford a home, it’s a good time to buy. There are various factors you need to take into account if you need a mortgage:
- Down Payment – The amount you must pay upfront to offset the amount you need to borrow. You usually have to put down at least 20% to avoid paying private mortgage insurance.
- Lender – The choice of the lender can influence the interest you will pay.
- Debt-to-income Ratio – The percentage of your income that goes towards covering debt each month. You can work this out by dividing your total monthly debt payments by income.
- Credit Score – If your credit score is below 620, it could be challenging to find a lender.
- Closing Costs – On average, closing costs run from two to five percent of the purchase price.
Housing Market Conditions
The best time to purchase a home doesn’t always depend on the seasons. The local housing market conditions play an important role. For example, the market you are interested in may not have any homes in the location you want or in your price range. It is cheaper to own than to rent in some markets, while in others, renting is justifiable. It all depends on the current state of the market you’re interested in.
Location Of The House
A house in a good location will be an asset even if the real estate market goes up and down. You can do a lot to change a house but you can’t change the location. If you want to live in the house, it should offer easy access to the places you go to the most, such as work, school, shops, etc.
If you want to rent it out to tenants, you must consider what sort of tenants you’re looking for. For example, if you want to rent to families, the location should have good schools and little crime.
When buying a house, you need to find out about the basic infrastructure in the area. Find out about roadways, trains etc. See if there’s sufficient water supply. Check out whether there’s good street lighting and internet connectivity.
The Size Of The House
The size of the house will have an impact on its potential and how you intend to use it. You need to carefully consider factors like the number of bedrooms and bathrooms. If you intend to rent to single people, you won’t need as many bedrooms as when you rent to families.
For finding verified tenants and getting the maximum rent, you can hire professionals who have experience in your area, for example in managing properties in Colorado Spring, Denver or Fort Collins. Property managers offer you the best renting solution and also provide maintenance services, no matter what the size or the purpose of your property is.
The Age Of The House
An older house may have appeal but it will also require more upgrades and maintenance. Make sure you consider building codes when buying an older house and have the time and budget to renovate it.
Best Time To Sell A House & What To Consider
The late spring and early summer are usually considered the best time to sell a house. The weather is good, and families want to buy their next home before school starts. Fall and winter are the worst times to sell.
Prices On The Local Housing Market
It’s important to consider the prices comparable houses are selling for on the local market. You shouldn’t inflate your asking price to a point far above what comparable houses are selling for. It will mean your house will probably stay on the market for an extended period of time.
Advertise The House On Relevant Platforms
Advertising a house on the relevant platforms is essential for it to reach all prospective buyers. A strong marketing campaign is likely to include a mix of social media and other types of marketing. Professional photos are a must when selling your house.
Estimate The Potential Profit
When you want to sell your house, you need to have a good idea of what it’s worth. It can be a big mistake to sell and overextend yourself to get into a more expensive property.
Consider The Current Tax Laws
When you sell your house, the IRS and state tax authority may take a chunk of your profit, especially if you don’t understand the tax laws and how to make them work for you. When you sell your primary residence, you are exempt from capital gains taxes on the first $250,000
Buying and selling a house depends on more than just the seasons. It also depends on factors such as local markets, your personal readiness to buy and much more.