When is the best time to sell the house?

Index

• Can the seasons of the year influence the sale of a home?
• What studies say about the best time of year to sell your home
• Regional factors that influence the best selling period
• Sell your home faster or for the highest price ?
• And will 2021 be a good year to buy or sell a house?
• Other factors impacting the promotion of the sale of a home

Can the seasons of the year influence the sale of a home?

Yes, and the studies only confirm what an experienced real estate consultant already knew. Depending on the time of year and the respective season, the sales probabilities increase or decrease. Here are some of the reasons:

• Spring is the best time of year to sell your home. This is probably due to the fact that people are more absent during the summer holidays, or more busy during the Christmas celebrations. Another positive thing about spring is that the houses are more inviting thanks to the gardens and the outdoor environment in bloom . In addition, the period of sun exposure increases , benefiting the interior light of the houses and increases the number of working hours to schedule visits. Finally, buyers with school-age children will prefer to buy a home before the summer, as if they have to change their children's school they will not do so after the start of the school year.

• Summer has never been the best time to sell a home. Many people choose this period to enjoy their holidays and on the other hand the "family" type buyers will be busier managing their care time for the younger ones, because of the school holidays and after, as well as at the end of the summer. because of the school start .
• Autumn can be a good time to sell a home. The climate still facilitates the visits. The number of buyers tends to decrease after October and therefore, the sales opportunities that may appear should be taken advantage of. On the other hand , in the autumn, the number of houses for sale tends to be lower , thanks to the high productivity of the 1st semester, which is why the houses that are put up for sale in this period, as long as the sale price respects the average market prices, tend to to have greater visibility and therefore greater demand .
• Winter can be the hardest time to sell, especially before Christmas.If you're not ready to put your home on the market before December, it's probably worth waiting until January , when people are more receptive to planning what to do during the new year.

What studies say about the best time of year to sell your home

What is the best time of year to sell a home? This is a question that many owners and brokers have asked themselves and of course, everyone has their own opinion. But this subject is treated more rigorously when it comes to companies linked to the real estate market, such as the Zillow Group (the largest online real estate ad company).

For Zillow, and after a study on properties published on the group's websites (which mainly operates in the US) it is in the first half of May that the pressure of supply increases the most , with a positive impact on sales volume. Those who advertise in this magical period can sell their house 18.5 days faster than outside this time window. In any case, the period that covers the months of March to June is the most suitable to be able to sell your house, that is, during the spring .

Regarding the day of the week, the study states that Saturday is the best day to start promoting and placing sales ads . Statistics from the Zillow portal point to a 20% greater volume of visitors on that day than for other homes advertised during the beginning of the week.

According to the all-powerful HomeOwners Alliance, based in Great Britain and representing 17 million homeowners and 5 million aspiring homeowners, the seasons have a different impact on home sales, having confirmed that Spring is effectively the most suitable season to put your property for sale.

In Portugal, this pattern repeats itself and we can observe through Google data that the demand for the 3 largest real estate portals starts strong at the beginning of the year, preceding the period of greater real estate activity in the spring and decreases throughout the rest of the year. of the year:

Regional factors that influence the best selling period

However, in each country or region there are local factors that influence and even contradict the trends described. eg in Portugal:

• Summer is the season when the number of emigrants visiting our country grows the most. However, the market for investors and buyers belonging to this segment has been increasing in recent years. In 2016 and in Portugal, for every 5 people who looked for a house, one lived outside the country.
• The purchase of a house under the Golden Visas and special tax plans for non-resident citizens has been a success, contributing significantly to attract investors, even outside the magical spring period mentioned above.But, with the recent changes in the scope of the OE 2020, it is foreseeable that this market will decrease in importance in Lisbon and Porto, and may stimulate other regions in the interior of Portugal.
• The Local Lease market has been, in recent years, one of the main drivers in boosting the real estate market in Portugal. Leading Lisbon and Porto, but also all over the country, LA licenses are here to stay and have contributed to the recovery of degraded or abandoned properties and are responsible for a substantial share of the sales volume in the residential market. But with the recent containment measures that many municipalities and certain parishes have been implementing in order to limit the number of properties to a maximum rate of 20%, the purchase or sale of your property should take this reality into account.
• Finally, the number of houses available for sale, in the neighborhood or parish where your house is located, is a very important factor to take into account, especially for apartments or villas with the same typology, age and characteristics.Many homeowners first wait for a given property in the neighborhood to sell before putting theirs up for sale. This is if the price is a disadvantage in comparative terms. The law of demand and supply tells us that when there is a shortage of product, prices rise, otherwise they will stagnate or even fall .

Sell your home faster or for the highest price?

The time factor is not always the most important, at least for all owners. There are those who prefer to sell the house for the highest price, favoring the sale value to the detriment of the speed of sale.

Well, what these studies also suggest is that, as the year progresses, after the period of greater offer of advertisements for the sale of houses, the offer tends to become scarce, making the properties for sale more attractive and susceptible to competing purchase proposals. This can help to achieve good sales in terms of the final price.

And will 2021 be a good year to buy or sell a house?

2021 will be an atypical year not only because of the Covid-19 pandemic, but also because of the economic consequences that it will inevitably entail.

When we talk about the ideal year to sell or buy your property, there is a condition that comes to mind: what is the state of the home loan market ? In 2021, as in 2020, interest rates and bank spreads have remained at exceptionally low levels and it is not foreseeable that they will rise in the coming years, not least because the economic crisis associated with the Corona virus pandemic is just around the corner. door. However, cheaper financing, associated with a rental market with a scarcity of properties and at reasonable prices, are factors that stimulate the purchase of a house for own housing.

Another factor that shapes the dynamics of the real estate market is the relationship between demand and supply. As long as the supply of real estate is lower than the demand, prices will remain high, which is less good for buying real estate.

On the other hand, even considering some negative factors that crises always bring (tourism will be one of the activities most affected by the Covid-19 pandemic) Portugal has been asserting itself in recent years as one of the most attractive countries in Europe for seeks to live and work in an increasingly global world where borders between countries are losing strength.

Despite this, throughout 2020 Portugal has registered a downward correction in prices in the residential market for used homes , and this trend is expected to continue in 2021. In other words, there are many factors that advise a more conservative choice of sale price from your home , including:

• The increase in the supply of new construction homes, which is a more attractive option for the buyer than buying a used home;
• The legislative limitations imposed on the Golden Visa scheduled for 2022, but which in 2021 may still attract some buyers to Lisbon and Porto, "before the door closes";
• The foreseeable changes to the tax exemption program for buyers from the Schengen Area (there is talk of creating an IRS rate of around 10%). This program has attracted many buyers from this European area, who benefit from tax exemptions in exchange for buying a house in Portugal;
• The limitations imposed on some areas of Lisbon and Porto with regard to the issuance of new permits for Local Accommodation;

For those who buy it is good, for those who sell it is less good. But these are the dynamics that support a healthy housing market.

Other factors impacting the promotion of the sale of a home

In the end, what these studies reveal is that demand and supply , in this as in other commercial areas, have a notable influence on sales success . The moment you decide to announce the sale of your home is important but not decisive, as you should also take into account other issues, such as:

• It is important to know how to choose the most appropriate sale price, as the interested customer, when faced with the price of other properties for sale in the neighborhood, may neglect his own.
• Advertise on as many specialized sites as possible, increasing the visibility window of your property. This issue is very important, however you should not make the mistake of "banalizing your property", since "selling without exclusivity contract" is often half way for your home to suffer from this devaluation.
• Publishing advertisements for the sale of your home using quality photos/videos and good descriptions that focus in detail on the features and advantages of your home (describing the services, schools, transport, etc. that exist nearby) is also very important.
• Without wanting to " pull the fire on my sardine " resorting to a top furniture consultant is a smart option. A good professional will help you choose the right price using their experience and knowledge of market prices and will give you advice to value your property:
  • producing a good commercial advertising campaign for your home;
  • investing in Digital Marketing channels, advertising, paid highlights, etc.
  • advising on improvements to your property that may prevent you from selling your home at the best price;
  • help you choose the best selling price and the best time to put your home up for sale.

My name is Ana Mação and I am a top consultant at KW Portugal, if you are interested in getting my help you can fill out this form , send me a message to: ana.macao@kwportugal.pt or contact me by phone: (351) 934 200 400.