Like any financial investment, the success of a real estate transaction can often be tracked back to timing. In fact, you could argue a lot of what goes into the ups and downs of life is timing. Whether it’s being in the right bar at the right time to meet your future spouse, joining a new company right before the stock takes off, or having your ski vacation coincide with a fresh dump of powder, timing really is everything.
Looking for some more real estate truths? Listen to our podcast, The Last Honest Realtor – available anywhere you get your podcasts!
Timing Your Home Sale is Something You Can Control
With regards to Real Estate, it’s no different. I am frequently asked about the timing of a transaction, and when the is the best time to transact. In general, people seem more often focused about the timing of their sale, and I believe that’s because that’s the side of the buy/sell ledger of which they feel they have more control. You can decide when a house hits the market, but you can’t necessarily control when the dream house becomes available. As such, often discussion are framed around when the worst times to sell a house are.
Looking for more home-selling resources? Here are a few more posts you might enjoy:
- What are the Signs Your House Will Sell Fast?
- Should I Price My Home Below Market Value?
- What’s Negotiable When Selling Your Home in Ontario
The Two Worst Times to Sell a House
If the choice to sell is under your control, there are two times of the year which are best to avoid.
Most notably, the summer is a historically very slow time in Toronto real estate, where listings have a longer number of days on the market and average prices tend to dip. Avoiding listing between the time which school is let out for the summer and Labour Day is a good rule of thumb if you want to maximize your exposure to the market and increase your chances of selling quickly and for the highest price.
Further to that, it’s best to avoid the weeks leading up to Christmas, as well as the weeks after Christmas. If you can avoid listing in December and January that’s ideal. While the first week of December and the last week of January won’t necessarily be a death knell for a listing, it’s best to aim to list before the end of November or in February if possible.
What Makes it the Worst Time to Sell a House?
The reasons these two times don’t work is twofold. One, the success of a listing depends largely on the amount of interest or demand in the listing, and in this city people tend to spend their summers enjoying leisure time in and out of the city and typically won’t allocate those valuable summer months to the time spent to transact real estate. Similarly, the holidays are busy and stressful at the best of times, and if possible, people will also avoid adding another item to their docket such as looking for a new home wherever possible.
Here at TRG, we’re not afraid to answer the difficult questions! For more home selling answers, here are a few posts that answer the questions you might be afraid to ask:
- Why Hiring Your Friend to Sell Your Home Might Be a Bad Idea
- Can You Fire Your Realtor if it’s Not Working Out
- Why Your Home Isn’t Selling
Consider the School Year
In addition to that, much of the market is driven by families with children, and the gravitational pull of those buyers and sellers is so large that it impacts the market in its entirety. If you can imagine having children, it’s suboptimal to have them switching schools in the middle of a semester. Buying a home in the spring and moving over the summer is the least disruptive to your children, and as a Plan B, buying a home in the fall and switching schools over the winter break is a solid alternative. Transacting during the summer or around Christmas means the move will happen 60-90 days later on average, and will have the kids switching schools in the middle of a semester, making transacting during those times less than desirable.
What About Selling Your Home During a Stat Holiday?
Another consideration for listing is the presence of Statutory Holidays immediately following the listing. Wherever possible, it’s best to avoid listing the week preceding a long weekend. This is particularly important if you are listing with an offer night strategy, as that strategy is contingent on maximizing eyeballs and showings of the property, translating to multiple offers. If your prime weekend for the listing is a long weekend listing, you risk losing interested parties simply because they are out of the city or have lots of plans to take advantage of the holiday weekend.
When Does Timing Matter During a Home Sale?
Timing of a transaction is most important however when it’s either your first purchase into a market, or when it’s your final sale and you are exiting the market. That’s because as long as you are buying/selling in the same market, you’re likely to be conversely advantaged or disadvantaged on either side of the transaction, depending on where the balance of power in the market is at that given time. If you’re getting a ton of demand as a seller, you’re likely going to be competing with lots of buyers when it’s your time to purchase, resulting in a higher sale price on both the buy and the sell. Conversely, in a buyer’s market, while you may not be getting as much as you might expect when you sell your property, you’re likely to get a proportional discount on the purchase of your next property.
We have written extensively about the ins and outs of selling real estate in Toronto. If you still have unanswered questions, here are a few more posts to check out next:
- Are Discount Agents Worth It?
- Should I Get a Pre-Listing Home Inspection?
- Should I Renovate My Home Before Selling It?
Accept that Some Things You Cannot Control
While all that is well and good, the fact is that many people cannot control the timing when it comes to transacting real estate. Because of changing life circumstances, you may not have the option to time your sale. Working with an established and professional agent who understands the market and can effectively and honestly explain the current market conditions is crucial, and together you can analyze your circumstances and formulate a strategy to most effectively address your needs. While many agents will rush properties to the market to begin the sale cycle, a capable agent will explain the pros and cons of listing timings, and work with you to determine what the best time to sell is. We at Toronto Realty Group pride ourselves in effectively communicating the market situation, and determining a plan that works towards a timing which gives our sellers the best chance to succeed against their needs.
If you want to discuss the timing of selling your house, please feel free to reach out. We’re always happy to chat, and would love to hear from you!
Get in touch directly by filling out the form on this page, calling us at 416.642.2660, or emailing admin@torontorealtygroup.com.
Ready to Get Started?
It all starts with a conversation. Whether buying or selling, TRG can help you achieve your real estate goals. Get in touch with our team today to start the process.
