Should I Sell My House Now or Wait?

When to sell a home (9 common scenarios)

Typically, you should consider selling now if the circumstances provide favorable selling scenarios. Each scenario in our list below can count as a positive point toward your decision to sell. The right situations might include:

1. If mortgage interest rates are low

Historically, sellers will find the greatest success when interest rates are low and more buyers are on the hunt. So, today’s higher rates will likely play a role in your decision of whether to sell your house now or wait.

As of late May 2024, average mortgage rates for a 30-year fixed loan stood at 7.03%, according to the Freddie Mac Primary Mortgage Market survey.

While the rates may seem high compared to the pandemic-era historic lows we witnessed, the current rate is still under the long-term average of 7.74%, and far below the rates observed in October 1981, which peaked at 18.63%, according to Freddie Mac records going back to 1971.

2. If housing inventory is low

When supply is low and demand is high, selling your home can be more profitable. The total inventory of for-sale homes in the U.S. remains relatively low. As of April 2024, the housing inventory was estimated to be at 3.5 months of supply. For context, 6 months of supply is representative of a balanced market.

National Association of Realtors data shows that the total housing inventory is about 16% higher compared to a year ago. If the Federal Reserve does cut interest rates later this year, Yun believes it will lead to even more supply. If your primary goal is to maximize your home-selling profits, you might consider listing your house sooner rather than later.

3. If you need to relocate for a job or other life change

If the hand of change is knocking at your life’s front door, selling your home may be unavoidable. You may need to move for a job, a family medical crisis, or divorce.

“We’re finding that the people that are selling right now need to sell more than they want to sell,” says Jose Roberto Samano, a top real estate agent in Orange County, California, who works with over 65% more single-family homes than the average area agent. “The family situation is probably the biggest reason. Job relocation too.”

4. If your home’s value has grown

If you have lived in your current home a long time, or if property values in your neighborhood have increased to the point where you have earned a significant amount of home equity, now might be a good time to sell and cash out.

“You’re up on chips right now,” Samano says. “It’s a great time to walk away from the table and reinvest your money back in. Getting back into the purchase market would be ideal because you can take advantage of buying cash or buying with a large down payment, which puts you in a different situation.”

5. If you are ready to downsize

For many older homeowners, downsizing may be more than a desire; it may be a necessity, either for financial, mobility, or other health reasons. If maintaining your home has become difficult, now might be a good time to sell.

6. If you need to upsize

Perhaps you need more room because your family is growing. Or maybe an elderly relative or child must come to live with you. Maybe your employment changed and you need a home office. The need to upsize can play a big role in your decision to sell now.

7. If you’re selling a second or inherited home

Now may be an optimal window to be a seller who isn’t also trying to buy a home.

“A lot of people are getting rid of their second property, their investment property that they had, or maybe they inherited a home or something like that,” Samano says. “Obviously, they don’t really need it and so they’re kind of offloading their properties.”

8. If you can pay cash for your next home

Let’s say you’re relocating from Manhattan to a countryside cottage in rural Michigan. The proceeds from the sale of your previous home will enable you to pay cash for a residence in a less expensive market. The use of cash eliminates the concern of giving up your lower mortgage rate.

9. You can’t afford to keep your home

Because of changes in your income or other financial setbacks, selling your home now may be the only way you can avoid potential foreclosure. If you’re in a bind of this kind, selling now may be wiser than waiting, given the economic uncertainty many consumers are feeling.

When to consider waiting to sell a home (11 scenarios)

Waiting to sell could be your best option depending on a variety of circumstances that can create unfavorable selling scenarios. The times to consider waiting might include:

1. If mortgage interest rates are going up

Traditionally, rising interest rates lead to a decrease in home values and offer prices. However, the current market defies this trend. Many homeowners, reluctant to give up their ultra-low mortgage rates, are staying put, creating a restricted housing supply and keeping prices high.

That being said, with home sales down nationwide, your property could potentially sit on the market longer. In April, the median number of days on market was 26, up from 22 a year earlier. Today’s high mortgage rate environment isn’t necessarily bad for sellers. To decide if waiting might be beneficial, carefully evaluate your local market conditions and your selling goals.

2. If your move isn’t crucial

Yes, upsizing can be on both the “sell now” list and the “wait to sell” list. Is your desire to upsize based on a crucial need, or just because you think it would be nice to have the extra space? The cost of purchasing a larger home now may become a burden, especially if other factors will add additional costs, such as higher interest rates or a lack of equity.

3. If you haven’t built much equity

Similar to evaluating your home equity when you’re considering trading up, you don’t want to move when your home is considered “upside down,” i.e., you owe more than the property is worth.

For example, if your home’s value is $300,000 and you owe $320,000, you may want to wait to sell or rent it out until you’ve built up some more equity.

Because the bulk of your monthly mortgage payment goes toward interest at the outset, it usually takes about four to five years for your home to build enough equity to make it worth selling. In addition, you’ll need to make sure your profits from the sale will cover all of your selling fees, which account for roughly 9% to 10% of the sale price.

4. If housing inventory is rising

When supply is high and demand is low, selling your home may not be as profitable as you would like. Keep an eye on what’s happening in your market.

In many areas of the country, high housing inventory may not be an immediate concern. Nationwide, it’s only at a 3.5-month supply, and a 6-month supply is considered a balanced market. The current U.S. supply is relatively low, and many people still desire home ownership.

“There’s still a lot of buyers out there,” Samano says.

5. If your home has unfinished major repairs or renovations

A home that needs a lot of work can turn away potential buyers looking for a turnkey property.

Typically, to get top dollar, you are better off completing any remodeling projects before placing your house on the market.

Whereas during the pandemic housing boom, most buyers were willing to take whatever they could get and waive many seller concessions due to the highly competitive market, many buyers are now more critical regarding the condition of the homes they’re looking at.

“Buyers smell blood,” Samano says. “They know there’s blood in the water.”

6. If you’re happy with your current home

If you are content with your existing home, and it fits your needs and budget, waiting to sell might be the best decision.

“If your home is comfortable and you are locked into a low interest rate, then you might not want to sell,” says Nathan Butcher, a top agent in Los Angeles with 24 years of experience.

Homeownership is a natural hedge against inflation. While rents continue to go up at an unusually fast rate (up by almost 30% since before the pandemic), you can rest easy knowing that your mortgage payments will remain predictable.

7. If you recently refinanced your home

Because mortgage rates hit record lows between 2020 and 2021, many people opted to refinance their higher mortgage rates instead of opting to buy a new home.

According to Freddie Mac, refinancing activity in 2020 reached its highest annual total since 2003, climbing to $772 billion inflation-adjusted dollars in single-family refinances. Now, as mortgage rates are higher, if you’re one of the many homeowners who refinanced in 2020, you will likely want to hold off on selling for now.

“Many homeowners have recently refinanced their property, locking in a great rate,” says Liz Hulz, real estate investor and co-owner of a house buying company in Washington, D.C. “If you have taken advantage of the historically low mortgage rates to refinance and ease financial hardship, now is not the time to sell.”

8. If you can’t afford to move

The recent rise in home prices can be a double-edged sword. It’s great when you’re on the sell side, but is it worth cashing out now if you’ll have to sacrifice those profits to buy high?

If you are not in a financial position to make your next home purchase, or if the cost of transitional housing is beyond your current reach, now may not be the best time to sell.

“With my clients, we take a look at the equity position that they have,” says Todd Schroth, a top-selling agent and relocation specialist in Wekiwa Springs, Florida. “Do they have enough money to sell it and have a nice down payment for the next property, or can they sell it, walk away even, and get similar financing on the next home? We’re not looking at $400,000 houses when they can only afford $350,000.”

9. If you will face steep capital gains taxes

Capital gains taxes are another consideration. You may be able to avoid paying capital gains taxes on your home sale, but you’ll need to have owned the home and lived there as your primary residence for at least two of the five years leading up to the sale.

As long as you meet these criteria, you can exclude up to $250,000 (or $500,000 if you’re married and filing jointly) of “capital gain” on your main home. In other words, if you just bought your primary residence, it may be in your best interest not to sell it for at least two years. If you need help determining how much you would owe in taxes, reach out to a tax advisor for assistance.

10. If you have no clear game plan or objective

Moving is a big decision. It’s even bigger when it involves selling what is likely the largest financial asset you have.

To avoid seller’s remorse, you’ll want to map out exactly what you’re going to do as soon as the home is sold; whether that’s immediately buying a new home, moving into a family member’s casita, or committing to full-time RV living.

11. You aren’t mentally ready to sell

Even if you keep pace with up-to-date information about the housing market and your equity situation, deciding whether to sell now or wait often comes down to a battle between your heart and mind.

When in doubt, talk with a top real estate agent who knows your local market inside and out to help you weigh both your personal and financial motivations.

7 tips to help sell your home

If you’ve decided that it makes sense to sell your home now rather than wait, here are some tips for navigating the market and ensuring a successful transaction:

1. Deep clean and declutter

As the market cools down, it becomes increasingly important to focus on the appearance of your home.

“That’s really kind of how people generally make a decision,” Samano says. “People fall in love with their eyes.”

Spend a few weekends getting organized. Take down personal photos and clear clutter from surfaces and floors. Schedule a cleaning service if you don’t have the time or energy to get the house sparkling. Rent a dumpster and plan for donation pickups if your home is overflowing with belongings you don’t plan to take with you.

Even how your property smells can influence a potential buyer’s decision, Samano says. “Make sure you don’t cook any fish during the week and stuff like that.”

2. Price your home right

“Your pricing strategy is important,” Samano says. “You don’t want to chase the market; you want to catch the market. What I mean by that is you want to price at a great advertising price so you can drive the price to its highest point possible.”

In other words, when a property is priced correctly, it welcomes enough people in the door who are serious about buying and sets the stage for a potential bidding war.

When pricing your home, it’s important to watch market trends. Due to the ongoing lack of inventory, CoreLogic forecasts home prices to climb 3.7% year-over-year between March 2024 and March 2025.

To get a ballpark idea of what your home is worth right now, you can use an automated valuation model (AVM) tool like HomeLight’s free Home Value Estimator. AVMs use publicly available data and recent sales records to generate a value range based on the current market conditions.

3. Work with a high-performing agent

“The best thing a seller can do is to seek out the top 1% of agents, instead of just going with a friend or family member,” says Butcher. “You need an expert in your area with great reviews. Interview two or three agents. Ask to see the properties they’ve sold in the last 60 months and ask about their networking contacts.”

Samano says to also look at the way agents market their listings.

“You want more of a digital agent rather than an analog agent,” he says. “You’re not going to sell your house to your neighbor. Nobody sells or buys houses through the penny saver or the newspaper anymore.”

A 15-minute preliminary phone interview can help you learn a lot about an agent. In addition, HomeLight can connect you with top agents in your area who have experience selling homes like yours.

4. Stage a home office

A USA Today report, citing an online survey of 1,000 American white-collar workers conducted with OnePoll, reveals that 33% of respondents work from home, while another 33% adhere to a hybrid work schedule.

Buyers today are looking for homes with an office and sometimes multiple offices. It’s worth it to stage a bonus room, bedroom, or area of the basement as a space that would support working from home. Keep it simple with a chair, desk, and lamp if you don’t already have an office setup. According to a recent HomeLight survey of top real estate agents across the country, a professionally staged home can sell for up to 13% more than an unstaged home.

5. Increase your home’s curb appeal

The National Association of Realtors reports that 92% of realtors recommend improving curb appeal before listing a home for sale. The most commonly suggested outdoor projects include landscaping maintenance (74%), standard lawn care (53%), and tree care (44%). Not only does enhanced curb appeal get more eyeballs on a home in a shorter amount of time, but it also yields nearly $12,000 in estimated resale value.

6. Focus on repairs before renovations

Opt to repair the roof before you refresh a dated but perfectly functional bathroom.

“Today’s homebuyers are looking for functionality and practicality instead of appeal and grandeur,” says Anthony Minniti, a seasoned real estate investor and owner of Texas Land and Home. “They want the most bang for their buck.”

Samano suggests focusing your repair efforts on parts of the home that are used all the time, such as the water pressure, door knobs, sliding doors, windows, and lighting fixtures.

“It’s that attention to detail that really makes a difference,” he says. “I try to tell my sellers everything just has to be on point in today’s market. Don’t give a buyer an excuse to say, ‘Hey, I couldn’t open the door, so now I’m going to discount the property $15,000.’”

7. Consider leveraging programs

The home-selling process can be daunting, especially when your finances are tight.

Samano says there are several ways to alleviate the stress using various leveraging programs.

For instance, companies like Curbio and Revive can be hired to do pre-sale repairs and renovations with zero payment due until closing. If you are working with an experienced agent in your market, ask them for recommendations about leveraging programs that might help your home sale.

Examples of other buy before you sell programs include Knock Bridge Loan, Orchard, Flyhomes, and Homeward. Watch the short video below to learn more about HomeLight Buy Before You Sell.

Samano says combining this type of program is “probably the most ideal situation, just because you’re able to unlock your equity, and really sell your property vacant and staged.”

Bottom line: Should I sell my house now?

If everything in your life is lining up, and you’re ready to make a move, then this is certainly not a bad time to sell your home.

That said, the traditional selling season every year is summertime, Samano says.

“If you’re just trying to time the market at its highest point, you want to sell in the summer and buy in the winter. That’s always kind of the idea,” he says.

You can check the best time to sell a house in your market with HomeLight’s Best Time To Sell calculator. This free tool uses housing market data for your area to learn the best and worst months to sell your home.

A sure way of knowing what to do in your particular situation is to partner with a top agent who can guide you through the moving waters of a changing housing market — whether you’re buying or selling. HomeLight can connect you with the best agent in your area that suits your needs.

Writers Melissa Rudy, Valerie Kalfrin, and Melissa Holtje contributed to this article.

Header Image Source: (todd kent/ Unsplash)