I’m a Real Estate Agent: 5 Reasons You Shouldn’t Sell a House in the Spring
Written by
Martin Dasko
Edited by
Rebekah Evans
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According to a report from Zillow, homes listed in the last two weeks of May 2024 sold for 1.6% more than at other times of the year. While this translates to an additional $5,600 on a typical home, the same report also noted that it’s uncertain if this year’s spring market will be similar. Many of the patterns have been disrupted by the changes in the real estate market dynamics over the last five years or so.
Orphe Divounguy, Zillow senior economist, pointed out that mortgage rate fluctuations have impacted the traditional spring home shopping season. Potential buyers who are on the verge of qualifying for a mortgage will make their decisions based on interest rate fluctuations. Even though the spring has traditionally been a good time to sell a house, other factors this year may not make this the case. These are five reasons why selling your house in the spring might not be a good idea.
If you are set on selling, here three tips to sell your house this spring.
Many Areas Are in a Buyer’s Market
“A reason it might not be worthwhile to sell your house this spring is that many areas are in a buyer’s market right now,” said Rebecca Hidalgo Rains, a real estate agent and the CEO of the real estate firm Integrity All Stars Realty in Chandler, Arizona. “Higher interest rates and increased supply in many cities are driving down prices and giving buyers significant leverage this spring.”
When your community is in a buyer’s market, sellers don’t have as much leverage when it comes to the transaction. With more buyers, you may not have the same control as during previous periods regarding the price and how you approach marketing.
There Are More People Selling in the Spring
Walter Johnson, a real estate agent, investor, and founder of Sonos Capital, stated, “I think the first thing I would be worried about is just the fact that most people sell in spring. This means that you’re likely trying to sell your home in a buyer’s market. As a result, buyers are likely to have a ton of options, making them picky and difficult to close.”
Experts have pointed out, which CNBC reported, that spring is usually when the real estate market sees the most activity, as homeowners want to close on a property transaction before the summer. However, with more people selling simultaneously, issues could arise due to competition.
You May Have To Make More Concessions
“If you’re a seller, you’ll likely need to make concessions to buyers and adjust your price expectations,” Hidalgo Rains said. “Waiting out the market and not selling your home this spring might be the best option for many sellers.”
While concessions won’t inherently have to be negative, there are many situations where they could become expensive if buyers know that they have options. For example, the buyer may request multiple inspections or ask you to cover the costs of expensive repairs before closing the transaction. As a seller, you may even be asked to cover certain expenses, like appraisal costs or a portion of the closing costs. Even though you may not want to be stuck with these fees, certain concessions may be unavoidable during a buyer’s market.
It May Take Longer To Close a Home
“Since demand in spring can be very high, you may realize that it takes relatively longer to close due to backlogs,” Johnson said. Another issue with selling in the spring is that your realtor could be swamped or take longer to close the transactions due to the activity. There’s plenty that goes into purchasing or selling a home, from organizing the home inspection to finalizing the financing with your lender. All of these parties could be much busier, which can cause significant delays.
“Besides, your agent may be too busy and engaged to give you the proper attention you need to not only sell quickly but to actually get the best deal possible,” Johnson explained. If your realtor doesn’t have the time to give your home the proper attention for adequate marketing and research, you may end up accepting a lower offer than anticipated.
You May Get a Lower Price
The realtors agreed that spring is a popular time to sell a home because there are more buyers on the market, but it may not be the best time to list if you’re looking to maximize profits. While having plenty of options is a positive for buyers, it could also mean that sellers end up with a lower offer than what they could’ve received if they had waited for the summer months.
The Zillow report also mentioned that timing a home sale based on mortgage rates, local market dynamics, and the season can be challenging. We recommend that you work with a local realtor who knows the market so that you can make an informed decision on when to list your place. It’s also challenging to predict what impact interest rates will have on the real estate market in 2025 as experts await announcements from the Fed on the direction of rates.
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