The Best Time to Sell a House in NJ?

The Best Time to Sell a House in NJ? 6 Signs You Should List Your Home

The reasons for selling a home can be as layered as the selling process. Whether a life event, market conditions, or financial circumstances motivate the sale, timing it correctly can impact the outcome. This article explores the top 6 reasons for listing a home and things to consider for each specialty.

1. Time of Year

The time of year plays a crucial role in determining the success of your home sale. Spring and early summer are traditionally the most active seasons for real estate across the U.S., and New Jersey is no exception. According to Zillow, homes listed in May sell six days faster than those listed at other times of the year and often for higher prices. The warmer months attract buyers motivated by favorable weather and deadlines to relocate before the new school year or start a new job.

Conversely, fall and winter tend to see slower market activity, but that doesn’t mean homes won’t sell. Sellers during these months often face less competition, which can be advantageous. Serious buyers are still in the market, and data shows that properties listed in October often attract highly motivated buyers who are ready to close quickly. Timing your sale around these seasonal trends can help you position your home strategically and maximize your results.

RightWay Realtor® Tip: Time is more important to consider than price. When selling, start by thinking about when you want the home sold instead of how much you want to make. 

2. Too Big or Too Small

Victor and Jamie were outgrowing their starter home with baby number two on the way. The converted office was now a nursery; one bathroom wasn’t enough for their family or sanity. One county over, Monica lived alone in an empty four-bedroom Dutch colonial after her mother passed away. She had more space than she could manage. 

Size matters when it comes to housing. Consider the additional costs of higher property taxes, utilities, and insurance when going bigger. If you’re going smaller, take an early inventory of your belongings and make a plan for getting rid of them. Whether your family has grown or your life has evolved, selling your current house can be the best path to your next.

3. Nothing on Sale in the Area

In early 2020, many homeowners in Maplewood were on the fence about selling their homes. When COVID-19 drove city-dwellers to the suburbs, boosting her property value by nearly 20%. When a housing market experiences high demand with little inventory, it’s considered a seller’s market. These scenarios present an opportunity for sellers.  

If there aren’t many active listings in an area, this indicates low inventory. Low inventory drives housing demand, leading to multiple offers and high sale prices. While opportunity can be found in a seller’s market, be realistic about pricing and negotiations. 

RightWay Realtor® Tip: Past results don’t dictate future outcomes. A Realtor will give you local and active market trends and behavior insights. 

4. High Equity

Robert paid his mortgage consistently over his twenty years of ownership. As his mortgage went down, the value of his house and his equity increased. Equity is the difference between a home’s value and the debt owed on it. For Robert, more equity meant more options in the buying process and a better net result when selling. 

Equity represents the gross profit a seller will receive at closing. New Jersey residents have seen their equity increase by an average of $55,000 over the past five years. Homeowners with enough equity can use it to take out bridge loans, short-term loans between selling their current home and purchasing a new one. On the other hand, owners with little to no equity may not be motivated to sell until values rise or they’ve paid more of their mortgage.

RightWay Realtor® Tip: With enough equity, you can use a bridge loan as a down payment on your next home before you sell. Use our property analysis tool to estimate your value. 

5. Low Interest Rates

A slight decrease can save buyers thousands of dollars on a mortgage, and they are equally essential when considering selling a home. Lower interest rates increase affordability and bring more buyers to market. This significantly stimulates areas like Edison and Middlesex Boro, NJ, where buyers are more discerning. When selling, this is to your advantage.

If you wait to sell until interest rates drop to save when you buy, keep in mind that you’ll also enter a more crowded buyer market due to increased affordability. Seek the advice of a Realtor® and lender when determining how interest rates will impact your decision to sell and then buy.

6. Physical or Financial Distress

Martin’s two-family townhouse in Jersey City was filled with cockroaches and non-paying tenants who didn’t pay rent. There was extensive damage to the units, and Martin was behind on his mortgage. Facing preforeclosure and extensive repairs, he decided that selling was his best option. 

Physical distress requires extra disclosure and proper marketing. A pre-listing inspection ensures buyers have more full disclosure, speeding up the closing process. Cost is the most significant consideration in dealing with physical distress, and time is the main factor in resolving financial distress. Foreclosures and short sales require quick action to avoid losing a house. 

RightWay Realtor® Tip: Cash offers aren’t suited for all situations. To learn how they work and see if you qualify, read our article The Truth About How Cash Offers Work.

Additional Signs

Death & Divorce: Selling a home due to inheritance or divorce often involves unique challenges. Understanding the probate process for inherited properties and navigating delicate negotiations during a divorce is critical to ensuring a smooth and timely sale.

Tired Landlord: You love collecting rent, but when frequent repairs, tenant turnovers, and evictions turn the venture into a hassle, you may consider selling. 

The Bottom Line

Homeowners often wonder, “When is the best time to sell my house.” The answer is often a blend of personal and market factors. The reason a home is being sold often impacts the strategy used to sell it.  

Are you thinking about selling? Contact us to discuss your specific goals. At RightWay, we build strategies tailored to every client situation.