5 Questions to ask yourself to decide if now’s a good time to sell your property

Selling your property for a reasonable price may seem impossible at present with reports on how the property prices are on the way down. 

Few, if any, sectors of the economy are operating on a "business as usual" basis, least of all the real-estate industry. 

In most states, open houses are starting to take place with restrictions, buyers and sellers are jittery about showings, and economic uncertainty has everyone who's in the market to either buy or sell a home wondering if the timing's right. 

There's no easy answer to this question, and much depends on the specific market. From the seller's perspective, here are a few considerations to mull over when you're deciding whether or not to put your home on the market:

1. Do your personal circumstances necessitate a sale? 

Maybe you've lost a job and can no longer afford your mortgage, or maybe you need to relocate for a new job. If you absolutely must sell your house within the next few months, experts agree that you should get it on the market as soon as possible. 

Serious buyers and serious sellers are making deals. First time buyers as well as up-graders are also often hoping to purchase as the market declines and get settled into a new home for a bargain. 

Getting your house on the market quickly might be a particularly good idea if you think the prospects for your local state economy is poor for the foreseeable future and you don't think you can hold out till the property markets start to recover.

2. Is your property empty? 

If your tenant has moved out and your investment property is empty, if you are unable to maintain a home and investment mortgage you may not have the option of waiting to put it on the market.

The good news is you'll be spared the stress of having to provide entry notice to your tenant and coming to an agreement on inspection time. Some agents have however successfully moved to virtual inspections, though most buyers want to visit the property at least once before making an offer.

On the upside, with talk of declining prices, many sellers took their property off the market. This has led to reduced sales listing, but lower inventory means more competition among buyers, and that may be good news for sellers who keep their houses on the market. 

3. Is the market in your area relatively stable?

While many markets have experienced around a 30% drop in listings along with dramatic price cuts during the peak of Covid_19, others have been surprisingly stable.

With real estate agents focusing on ‘off market’ sales to customers on their database to connect seller with buyers. And where properties are fairly priced, they get sold pretty quickly.

4. Ability for buyer to get home loan approved

COVID_19 has changed the lending environment. Some banks are demanding that mortgage applicants show stability in employment and income status in-order to approve loans.

Banks are tightening their guidelines to ensure that the quality of loans on their books is not impacted by higher arrears in the coming months, years because they lend to someone who ended up with reduced earnings.

5. Are you prepared to have realistic expectations regarding price?  

Anybody who expects to get boom time prices for their property right now is likely to be disappointed. Buyers have been beat up for a decade and have been waiting for a shift in the marketplace, and now they have it.

Property owner who wanted to sell at the height of the market may have missed that opportunity, and will now have to settle for potentially lower than expected sales prices.

Those who have owned their homes for decades should still realise some gains, but sellers who have only owned their property for a few years, unless desperate to sell, should wait for market to stabilise if they possibly can. 

The bottom line, sellers should be talking to a local realtor, getting a sense of what they think the market is likely to be for their particular property. 

Enjoyed this article? Take our mortgage shredder challenge and discover how much you can save on your home and investment loans by using loansHub technology as your personal mortgage manager. To read more insightful articles, click here.

This article via Business Insider does not constitute advice; readers should seek independent and personalised counsel from a trusted adviser that specialises in property, a tax accountant and property design specialist.