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 underperforming 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.
And perhaps while going through this list, you might just realize that now is a great opportunity to sell.
“It was a pleasure working with Rick throughout my selling and upgrading journey.
His recommendations and knowledge of financial calculations and preparations are impressive – even factoring in risk management specific to us, for the next 5 to 8 years.
He has shown his expertise in real estate and guided us step by step all the way, making transactions effortless for us.
Well done Rick!
Shawn
Buyer - Riverfront residences
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
Price comparison between The Tennery and District 23.
The Tennery is a development situated in District 23.
The Tennery depreciated 1.3% from 2013 to 2023, while the average of District 23 resale Condo went up 28.63% during the same time.
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.
However, we also observe common dips in value when properties are still considered new. .
The sudden surge in supply and overall aging of the property contributes to the decline in prices.
So, if you do not intend to make your New Home your forever home, it might be good to start planning ahead for selling at some time.
Upgrading Lifestyle
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?
We have helped many clients successfully upgrade from their HDB to a Condo, and hence came up with a useful checklist to go through before you proceed.
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.
Reducing Commitment
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 downsizing 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, Underperforming Asset, as this is more relevant for them than typical homeowners.
Lets look at the chart above.
Double Bay TOP in 2012
Tropical Spring TOP in 1997
Looking at the above price trends for the past 10 years. Double Bay appreciates slightly lower than Tropical Spring.
An under-performing asset is generally a property located in a good location, with decent rental yield, yet stagnant price.
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.
Property Wealth Progression
Property Wealth Progression is a concept used by many home-owners who uses their current property as a leverage to increase their wealth or be well-prepared for their retirement.
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 homeowners 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 situations or by choosing from one of 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 of your personal needs.
Rick service has a very personal touch. He was extremely patient and professional and does not rush us into making any decisions he provided us with sound advice whenever we have questions and was always ready to provide help with regards to any matter. What impress us the most was the extra step he went by assisting us with the purchase of our new home, even though this was in no way his responsibility to do so. Thank you for the hassle free experience Rick. Highly recommended
Mark
Seller - Woodlands
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 it in more detail, 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
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Who should apply?
- Homeowners who are thinking about selling their property and want to know the best time to do so in order to maximize their profits.
- Real estate investors who want to stay up-to-date on market trends and timing in order to make informed decisions.
- Real estate agents or brokers who are looking for insights to share with their clients.
- Anyone interested in the real estate market who wants to learn more about the factors that influence property prices and exit strategy.
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Self Introduction
Rick Long, Associate Division Director of Huttons Asia Pte Ltd, has been in the Real Estate industry for more than 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.
Well-equipped with expertise in residential properties, Rick often impressed his clients with knowledge of market trends, advising on timelines, financial calculations and best options for his clients.
Amidst the hustle and bustle, Rick enjoys quiet time and indulges 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.
Related Articles:
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)
The Best Time to Buy is to get the right moment, good entry price, and discounts, and before the market start to shoot up .
Thank you for the tips on best time to sell. It is indeed very informative.
Thanks for reading my article and sharing your views.