Spring is historically the most popular time to list a home, followed by summer. Peak buying season is April through June, with home sales reaching their highest point in June. But if you’re looking to sell and you’ve missed that boat, you may wonder whether listing your home in the fall is a smart move.
The reality is that selling a home during the fall can be a mixed bag. Here are some of the benefits and drawbacks to consider.
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Pro #1: There May Be Less Competition
High interest rates are keeping a lot of people from listing their homes. Many homeowners refinanced their mortgages in 2020 or 2021 when interest rates plunged to record lows. Selling right now would mean giving up those competitive rates and swapping them for mortgages with much higher interest rates, which is why a lot of homeowners are opting to stay put.
That makes this fall in particular a good time to sell a home. When there’s less competition, you may be more likely to get your asking price. Or, better yet, your home could end up in a bidding war that drives up its sale price if it’s among few available properties in your area.
Pending home sales in July fell 5.5% from June, with all four regions of the U.S. posting monthly losses in transactions, according to the National Association of Realtors. Year-over-year, pending transactions were down 8.5% as the Northeast rose while the Midwest, South and West registered declines.
Beyond these circumstances, Jake Leicht, real estate investor and founder of The Flip Secrets, a real estate mentoring program, says fall is a good time to sell a home in general due to less competition.
“Many agents plan with their clients to sell homes during the summer,” he says. In the fall, “you have decreased competition with other houses being listed for sale because people are back in school.”
Pro #2: Buyers May Be More Easily Able to Focus
Parents of school-aged kids often find it advantageous to buy a home in the summer. But many buyers are busy during the summer with travel plans and other activities. And then, as the December holidays near, it can also be difficult to focus on house hunting.
Fall hits that sweet spot where buyers can buckle down and take the time to search for homes, according to Jose Berlanga, a real estate investor and developer in Houston.
“Historically, over the last few decades, fall has been one of the most consistent and predictable seasons of the year,” he says. “There are a number of reasons for this, including fewer people on vacation or preoccupied with other business and personal issues. Traditionally, there is more calm during this season to shop for a home.”
Pro #3: The Weather Could Be on Your Side
Nothing boosts a home’s curb appeal like trees brimming with brightly colored leaves and festive fall decor. Plus, the fact that the weather is generally cooperative could work to your benefit.
“In most places around the nation, weather during the fall is quite pleasant, making it easier and more fun to drive around, get in and out of the car to visit homes,” Berlanga says. “It makes it a nice activity, as opposed to doing so during winter or summer months when it’s often hot or cold.”
Not every market experiences a slowdown in fall and winter. In the warmer southern states, like Florida, these are more like the peak spring/summer season. Southern weather at this time of year isn’t as hot, humid or rainy. It’s a great time to get your property on the market when there is less inventory. More listings pop up in the winter, which gives buyers more options and room for negotiation.
If you list before the peak of fall, you can often get a better sale price for your home, especially if it’s in good condition and staged well.
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Con #1: It Could Take Longer For Your Home to Sell
The fact that fall isn’t a particularly popular time to buy a home could also work against you.
As Leicht says, “Typically in the summer, a lot of families have their kids out of school. They’re willing to relocate in between the school years, so they don’t pull their kids out in the middle of a school year and put them into a new location or a new school. A lot of times people plan for the summertime. So when we sell homes during the summer, typically there’s a lot of buyers.”
When you sell in the fall, he explains, “You’re not going to get offers as quickly. So you have to be much more patient.”
Another thing to consider is that buyers who didn’t find a home in the spring or summer may be more inclined to wait until the end of the year for financial reasons. As Berlanga points out, “Some buyers may be waiting for that Christmas bonus to assist with the down payment and moving expenses.”
Con #2: You May Have to Settle for a Lower Price
Having to wait longer for your home to sell doesn’t just mean living in limbo. It could also mean having to settle for a lower sale price.
In some cases, the longer a home sits on the market, the more bargaining power buyers gain. They might assume that if your listing is 45 days old and your home hasn’t been scooped up, that there’s something wrong with it. That could lead to a lowball offer.
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Con #3: You May Not Get to Completely Show Off Your Curb Appeal
Depending on the timing of your listing, fall could be an optimal time to show off your home’s exterior. But depending on where you live and what stage of the season you list, you could have the opposite experience.
“Landscaping and curb appeal are incredibly important when selling, and during the fall, plants and grass can start to die,” says Seamus Nally, CEO of TurboTenant. “Plus there’s more cleanup with leaves falling, so that can result in a lot more work on your end.”
If you’re going to list your home in the fall, you may want to favor the earlier half of the season. Otherwise, that could mean doing more leaf and branch removal to keep your lawn free of debris, and keeping daily messes inside the home at bay. Just as it’s important to keep the inside of your home neat and clutter-free while buyers are scoping it out, your exterior should also be well-maintained.
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Pros and Cons of Selling Your Home in the Fall originally appeared on usnews.com
Update 09/16/24: This story was published at an earlier date and has been updated with new information.
