Should I Sell My House Now? How to Make the RIGHT Decision in 2022

By Amy Beardsley

Posted on July 8th, 2022

Selling Your Home in 2022 | When to Sell | When to Wait | Seller’s Market Definition | Buyer’s Market Definition | Best Seasons to Sell | Tips to Sell in 2022

Should I sell my house?

Is 2022 a good time to sell a house? Many homeowners are grappling with this question, particularly after home prices increased so rapidly in 2021 and interest rates are on the rise for the first time since 2019.

When you’re unsure about the market, it can be tempting to postpone selling for another year or two. But you don’t want to miss out on what could be the best time to sell your home.

Here’s what we know about selling your home in 2022 and how you can better judge your local market for yourself.

If you’re still unsure after reading this, the best decision is to speak directly with a local real estate agent. A qualified real estate agent can tell you how your local market is trending — and whether you should sell now or wait.

Fortunately, our friends at Clever Real Estate have done the research for you. Clever is a free service that vets the best agents in your city, then provides personalized introductions to agents who are a strong fit for your specific goals. Clever matches you with partner agents from trusted brokerages such as Keller Williams and Coldwell Banker, and RE/MAX.

And with pre-negotiated listing fees of just 1%, the average seller saves $9,000 with Clever!

🤝 Match with local agents for free, with no obligation!

Should I Sell My House in 2022?

Selling your home in 2022 could yield a large profit, and it would make for a fast sale in most areas. However, if you expect to take on a new mortgage right away, you may face a competitive market and higher mortgage interest rates.

Pro: Home Prices (and Profits) Are Still High

Since 2018, home values in most areas have increased by 36% according to St. Louis Fed. In 2021, the typical home sale profit nationwide was $94,092 with a 45.3% return on investment.

Rising prices translate to increased homeowner equity, putting more money in your pocket if you decide to sell – even with closing costs and other fees involved in selling.

While some markets are starting to see price increases level off, and experts expect the market to simmer down a little bit this year, it’s still a good time to turn a profit on a house.

» Read More: The True Cost of Seller Closing Costs (And How to Save!)

Pro: Inventory Is Low, and Homes Are Selling Fast

Right now, you likely won’t have an issue selling your home, as most of the country is a seller's market. The low supply of homes creates a sense of urgency in buyers, causing houses to sell faster and for more money.

While inventory is slowly trending upward after months of deep decline, it’s still only half the amount of available homes in 2019.

Houses were on the market for a short median of 32 days in June 2022; by contrast, homes were on the market for 69 days at this time in 2020.

In a hot market like this, you’re likely to get multiple competitive offers on your home if you price your home correctly and market it well.

Con: Buying Another House Could Be Trickier

A seller’s market is ideal for sellers, but for buyers – not so much. If you plan to buy another house just before or after selling yours, you’ll face more challenges.

As of June 2022, the average 30-year mortgage interest rate was 5.7% – almost double what it was a year ago. While 5.7% is still relatively low on a long-term historic timeline, it’s something to consider if you’ll need to finance a new home.

You’ll also come up against hot competition with other buyers. Depending on where you buy, you may need to offer over asking price to get a shot at the home of your dreams.

Whatever you do, have a plan in place for what you’ll do after you sell, and know what to expect from your local market as a buyer.

Buying and selling a home at the same time can be tricky to navigate. An experienced, local realtor can help.

Whether it’s deciding when to put your home on the market, or finding temporary housing between selling and buying, local realtors have the resources you need.

Skip the internet research by connecting with our friends at Clever Real Estate! After a brief questionnaire, they’ll match you with top agents in your area who meet your preferences. You can interview as many as you like – for free, with no obligation to work with one.

Best of all, Clever’s partner agents can earn you more on your sale by saving you money in commissions. You'll pay just 1% — which translates to $8,000 in savings for a $400,000 home!

📨 Get agent matches delivered straight to your inbox!

Should I Sell My House Now or Wait?

National trends are important to consider when timing your home sale, but your specific market conditions might be even more telling. Ultimately, your personal life circumstances matter most.

Consider these situations to help you decide for yourself.

It's a Good Time to Sell If…

  • You’re selling a second or inherited house. If you don’t need to live in the home, and don’t plan to keep it, selling it now is best. Holding onto it means flushing money down the drain for taxes, insurance, utilities and other homeowner expenses.

  • Your current home no longer meets your needs. Selling your home now could be beneficial if your family has outgrown it, it requires an extremely long commute, or you need to downsize for economic reasons.

  • Your house needs a lot of work. If you don’t have the time and money to update or fix it, or you can’t take out a loan to cover the work, selling now could keep it from falling into further disrepair.

  • You live in a hot market and plan to move to a cooler market. If you can get a lot for your home quickly and your new home will cost less, selling now might be best.

When Is It Better to Wait?

  • You’re happy where you are. There’s no need to sell just for the sake of selling. Stay put if you’re happy.

  • You recently refinanced. If refinancing improved your interest rate, selling now may undo all the work and cost you just went through.

  • You can’t afford current home prices. Keep your home if it’s too expensive to buy another one in your desired area.

  • You don’t have much equity. Selling without much equity may result in losing money to realtor commissions, closing costs, and moving expenses.

  • You’ll have high capital gains taxes. If you’ve lived in your home for less than two years, keeping your home means you can avoid paying capital gains until the house sells.

  • You aren’t in the mindset to sell yet. Selling your home requires a lot of mental and physical energy. It's okay to keep your home if you don't want to go through the trouble of selling it.

[object Object]

What Is a Seller’s Market?

A seller's market happens when there are more home buyers than homes for sale.

In a seller's market, buyers may make offers on homes as soon as they’re listed — sometimes sight unseen. Sellers often receive their asking price or higher, and buyers making cash offers can encourage sellers to close faster than usual.

For example, suppose a four-bedroom home comes on the market because the family is moving to another area. The owners may receive multiple offers within only a day or two, despite the fact that the house has an outdated kitchen and needs a new roof and water heater.

Many buyers are so desperate to buy a home, they are willing to overlook drawbacks when a home requires significant repairs or updating.

In a seller’s market, sellers can dictate their asking prices and closing terms, giving them a significant advantage over homebuyers.

» Read More: Experts Tell: How to Sell a House (Quickly) in a Seller’s Market

What Is a Buyer’s Market?

A buyer's market means there are more homes for sale than there are potential buyers. Sellers must compete for buyers' attention and money. Buyers have the upper hand because there is always another house available if a deal falls through.

As a result, sellers in a buyer’s market may need to be more willing to negotiate reduced prices, offer more flexible terms and cover closing costs to attract buyers.

For example, suppose a buyer wants to live in a specific neighborhood for convenience or access to local schools. If a seller is unwilling to negotiate, the buyer can pressure the seller to agree to their terms by considering other homes in the neighborhood — and jeopardizing the sale.

In a buyer’s market, focus on repairs, minor improvements and home staging to show a property in the best perspective possible without sinking more money into it.

» Read More: What is a Buyer’s Market in Real Estate? How to Tell and Avoid Mistakes

8 Tips to Sell Your Home

If you’re ready to put your home up for sale, here are some tips to help you get the most bang for your buck.

  1. Deep clean. Clean floors, walls, bathrooms and the kitchen professionally. Dirty homes turn off buyers.

  2. Declutter. Make your home feel bigger by removing at least half of your personal property, including family photos, boxes, unused kitchen supplies, toys, and furniture.

  3. Consider staging. Professional staging makes rooms more attractive and helps buyers imagine themselves in the home instead of being distracted by clutter and decor.

  4. Prioritize repairs over renovations. Repairs cost less and can keep buyers from being distracted. If the repairs are required for inspection, you’ll speed up closing if you address them ahead of time.

  5. Pick the right price. Competitive pricing sells homes faster.

  6. Boost curb appeal. Declutter your yard of trees, shrubs, and belongings that make it difficult to see the home. Fresh paint or new flowerbeds can also brighten up the home from the outside.

  7. Work with a local real estate agent. Local agents know exactly what buyers are looking for – and what they’re willing to pay. Having one on your side will help you sell faster and for top dollar.

Don’t have an agent yet? Start by connecting with our partners at Clever Real Estate. Their licensed concierge team can introduce you to pre-vetted agents near you from major brokerages like Keller Williams, RE/MAX, and more. Best of all, you'll save thousands, thanks to Clever's affordable 1% listing fees.

[object Object]

Recommended Reading

FAQs

Should I sell my house in 2022?

The answer depends on your local market and personal situation. In general, 2022 is a great year to sell and make a profit. However, if you plan to buy a home in a hot market after selling, you may face more challenges than you expect. Learn more about the real estate market in 2022.

When should I sell my house?

You should sell your house when it makes sense for your finances and your lifestyle. Ideal times to sell your house include: when you’re selling a second or inherited house; when your current home no longer meets your needs or requires a lot of work; or when you live in a hot market and plan to move to a cooler market. Learn more about when to sell and when to wait.

Interested in buying or selling?

We've improved the traditional real estate model with modern technology to cut costs, not quality.

Get started today

Posted in Preparing to Sell Your Home, Selling a House