When is the best time to sell your property?
Selling a house is no doubt a huge financial and life decision.
It is no wonder the question of “When is the best time to sell my house?” forms one of the top questions, I get from clients.
The truth is, the “best time” differs for every seller for a variety of reasons.
Some sellers want to max out the peak property price, others just want to sell an under-performing asset and move on to the next and better opportunity.
Can you see the difference in each person’s objectives?
Adding on to that, in real estate, if you are selling in an “upmarket” trend, you are also likely to be buying in an “upmarket” trend. So, the common concern about whether the market is up or down is usually not that critical when selling for lifestyle reasons.
As such, instead of focusing on the “best timing” (since I will need to assess each and individual situation), I will focus instead on some key questions that you can ask yourself.
Table of Contents
Changing Life Priorities
This is more common than you expect. Parents selling their houses to get new ones nearer to their children’s primary schools, working adults selling their homes for ones nearer to their workplace, and more…
Is there an urgency to sell in these situations?
For schools, Yes! Most of the time there is. So, it is about planning ahead, if you do not want to be caught in a fix of trying to sell your property with a looming deadline.
It will be good to give yourself at least 1 – 2 years to explore potential opportunities before your child attends the school.
For workplaces, the urgency is typically not crucial, so you may afford slightly more time to explore various options available – and wait out for a better price if required.
Depreciating Home Value
This is something that many homeowners are shockingly unaware of. Many expect their property prices to continuously appreciate over time but get a bad surprise when they realize prices can and do dip over time.
Yes, the values of new properties tend to appreciate over time.
The sudden surge in supply and overall aging of the property contributes to the decline in prices.
So, if you are not intending to make your BTO your forever home, it might be good to start planning ahead for selling prior to MOP.
That leads up to our next point: Want to move from an HDB to a Condo? If you are looking to upgrade your lifestyle, selling your current property will be within your consideration. So, when is the best time to do so?
From understanding your eligibility to ensuring all necessary finances check-box are ticked, to advising whether the property will be better as a new home or as an investment etc., our checklist [ Upgrading from HDB to Condo article] will be helpful in your planning, when you should and can sell.
In contrast, there are also points in your life where you could be looking to de-risk and reduce commitment in properties. That could be a factor to consider selling your properties on hand.
From down-sizing to planning for retirement, there are many reasons you might want to consider reducing your commitment.
Depending on my clients’ ages, current life stage and finances, I could advise a variety of ways to go about selling the property and also what could be a meaningful next step.
An Underperforming Asset
Property investors will be familiar with this term as this is more relevant for them than typical homeowners.
Should you sell in such a situation? It depends. If you are looking for future capital gains, and there are no further development plans that could indicate such growth, then selling is probably a good idea.
Re-channeling the funds to another better performing property will benefit you in the long run.
Understanding Growth Plans For Singapore Investment Property
Property Wealth Progression
How? You may ask.
Well, a series of step-by-step action plan will be developed and executed over time.
In summary, it is to sell the current property and finance 2 or more properties with the potential of better opportunity and returns in the next 5 to 8 years.
Why? Many home-owners do not know that they are actually sitting on gold mines. Meaning that the cash and CPF that are “hidden” in the current property can potentially be unlocked for greater beneficial returns.
What can we do with the funds?
More often than not, the “Sell One Buy Two” concept can be applied in such situation or by choosing from one my list of proven methods to gain home investment traction.
Nevertheless, please note that this does not apply in ALL situations and an in-depth Property Wealth Progression analysis is required to gain a better view for your personal needs.
Food for Thoughts
- Do you know the value of your current property? When is the last time you did a property value-assessment?
- Will you be keen to go the extra step and further understand successful concepts practiced by home-owners to make the change today, for a better tomorrow!
- What is holding you back from approaching a professional, who may be able to help you progress and upgrade your lifestyle without the hassle?
- Did you know that Financial Freedom and a comfortable retirement is possible, for those who knows how?
Other Time Factors to Consider When Selling
Apart from situation-specific factors as discussed above that could influence your timing to sell, there are a variety of other time factors you should look out for as well.
So, is it the Best time to sell your property?
Unlike buying properties [What does it mean to Buy Property at the Right Time?], it is not nearly as straightforward for selling properties. I wish I could cover in more details, but that would be an endlessly long article.
Nonetheless, I hope the short analysis above has helped to shed some insights into your selling situation.
Bonus for my readers
I have successfully helped hundreds of homeowners just like you since 2010
Have you learned something New Today? Please help to share.
Rick Huang, Associate Deputy Group Director of OrangeTee & Tie, has been in the Real Estate industry for a decade.
He is driven, committed and is enthusiastic about real estate investments.
Today, he leads Team Youhome.sg, and together, he aims to provide his clients with the best experience in their property journey.
The team focuses on understanding the client’s finances and needs and is determined about delivering the best solutions and results for them.
Amidst the hustle and bustle, Rick enjoys quiet time and indulge himself in the intricate art of tea-brewing and teapot appreciation.
He would also take this chance to energize himself and reflect on his personal development and areas of improvement.
He is also a proud fur daddy to 2 rescue kitties and loves spending his free time with his wife and furbabies.
Ever wonder if you are suitable for Sell one buy two investment concept? – Read more (Sell one buy two)
Is buying new launch or resale condo have better returns? – Read more (New Launch vs Resale condo)
Looking to upgrade from Hdb to condo? – Read more (Sell Hdb buy condo)
What to take note when selling Hdb resale flat? – Read more (Hdb Resale Process)
Buying another Hdb flat, and using the fund from current home? – Read more (Hdb contra)
Why do some Hdb flat price depreciate so much? – Read more (Hdb depreciation curve)
What is one of the most common reason for property negative sales? – Read more (Cpf accrued interest)
Financial calculation for selling a Hdb flat? – Read more (Hdb resale calculator)
Buying EC before selling your HDB? – Read more (Upgrade to EC before selling your HDB)
Should you sell your EC after 5 years? – Read more (Selling EC)