Should you follow your heart or your head when moving house?
Trying to time your house sale to align with the market to ensure the maximum possible sale price? Moving home is an emotional decision - should you follow your heart, or the economy? Find out here...
The housing market changes all the time. It's in a constant state of flux. Sometimes there are more buyers than properties available to sell, often described as a seller's market, where prices can rise due to the high volume of buyers. And at other times, there are tonnes of properties available for only a handful of buyers to choose from - a buyer's market, where they have the flexibility to take their time in finding a home, knowing that there may be a bargain to be had. However, even in a buyer's market, you can still make a good sale if you price your property realistically and present it well.
Fluctuations in the economy, the availability of mortgage finance and interest rates can all have an impact on the property market. If the economy is strong, buyers will feel confident to spend. This will be assisted by the availability of mortgage financing, enabling those newly confident buyers to pay for the property. However, if the economy is struggling, or at least the pubic perceives the economy to be a little rocky, buyers may feel less confident in taking on mortgage debt or spending their savings to purchase a home.
When the market slows, buyers do not look to buy a property because they want to; there are real reasons behind their move. They may need more space for a growing family, or less space as children move out. They may be looking for a change of location due to a new job or for better schools.
But when the market is buoyant, like the market we saw post-COVID, many buyers will consider buying a property for more minor reasons. Perhaps they would like a bigger garden or a nicer kitchen. Often, in these markets, some buyers are moving just 'because'. Jumping on the bandwagon of a buoyant market, as everyone seems to be moving, rather than only those buyers who are moving because they have to.
With these differences in the market, it might seem sensible to try to time your move with one of those swings where there are lots of buyers, fewer properties to compete with and a good economy. Selling your home when it is a seller's market makes sense, right? You have a higher chance of selling your property when there are lots of potential buyers, and you might just achieve that aspirational price for your home as prices begin to rise.
But, is this the right thing to do? Possibly not.
Selling your home - the money, the stress, the upheaval - is not something that should be taken lightly. We understand that this is a significant decision, often driven by personal reasons, and not just a financial transaction. If you have reasons that you need to move, those reasons are likely to be there all the time, not just timed perfectly for a good selling market.
For most sellers, whatever market you sell in, you will be buying in too. If the value of your home has increased, and you are lucky enough to have multiple offers on your property, the chances are that homes you might like to buy will also have increased in value. And you are likely to find yourself in a bidding war with other offerors, meaning there is a chance you could set your heart on your next family home and miss out to someone else who can or is willing to offer more.
Ultimately, selling your home and moving to somewhere new is an emotional decision. People sell homes because they need to move, and if your need to move is great enough, then you will have to make compromises until the market picks up if you try to time it just right. This can have a negative impact on your home life. Your family having to travel more because you live in the wrong area, or squeezing yourself into a property that is just too small for you now, just because you are waiting for the market to pick up.
And buyers can tell, too, that you have fallen out of love with your property. When the time comes for you to put your property on the market, they can smell that your property just doesn't work for you. This can give a bad vibe. If you and your family don't fit in the property anymore, will they? If you are selling because you don't like the area, why should they like it? If you feel the garden is just too small, maybe they will find it too small and consider looking elsewhere?
So, to a certain extent, ignore your head. Ignore those thoughts that perhaps you should wait until things pick up. A seller's market is great, if you are selling - of course it is. But you are likely to become a buyer in that market too, which could mean a struggle to find another suitable property, bidding wars, and even the risk of gazumping, where you might lose the property you had set your heart on and pay more than you initially planned.
Instead, follow your heart, your emotional brain. Sell your home when you need to. When the time is right for you and your family, not when the headlines tell you that the market is good.
As estate agents, we sell homes all year round, not just when the sun is shining or the interest rates are favourable. Don't let your life be dictated to by economists - if you need to move, then move. And we can help you with that.
Our team is here to guide you through the process and ensure a smooth transition to a home that works better for you and your family.