For sellers who are contemplating whether they should sell their Austin home<\/a> or wait, there\u2019s no one-size-fits-all answer as there are many factors to weigh. We\u2019ve researched the essential points to consider to determine if now is a good time for you to sell your Austin home, or if you might benefit from waiting.<\/p>\n\n\n\n\n\n It takes just two minutes to match you with the top-performing real estate agents in Austin. Our data shows that the top 5% of agents in the U.S. sell homes quicker and for as much as 10% more than the average agent.<\/p>\n \n Typically, you should consider selling your Austin house now if the circumstances provide favorable selling scenarios. The right situations might include:<\/p>\n Historically, sellers will find the greatest success when interest rates are low and more buyers are on the hunt. Although rates have risen significantly this year, they\u2019re still far from historical high levels of past decades<\/a>. Still, the elevated rates have reduced buyers\u2019 purchasing power, sending some to the market sidelines. This means more competition among sellers who now must market their homes to a smaller pool of buyers.<\/p>\n No one can predict what will happen with rates long-term, but sellers can monitor rate trends and U.S. Federal Reserve announcements to get a better indication of the trajectory. Additionally, a falling consumer price index<\/a> (CPI) could be an indication of declining rates in the future.<\/p>\n When supply is low and demand is high, selling your home can be far more profitable. However, according to Leonard, the inventory can vary greatly even from neighborhood to neighborhood.<\/p>\n \u201cI would definitely say it\u2019s hyperlocal,\u201d says Leonard, who works with over 68% more single-family homes than the average Austin agent. \u201cSellers need to look at their specific area to see what\u2019s on the market.\u201d<\/p>\n Variation in inventory affects the supply and demand dynamic in a particular area. Even though the Austin market has cooled overall, Leonard says she\u2019s still encountering situations in specific areas where sellers are getting multiple offers due to the low inventory in the vicinity. On the flip side, if a neighborhood has an influx of listings, it could make it more challenging to sell a home in that area.<\/p>\n Sometimes personal reasons will dictate if it\u2019s the right time to sell, versus market conditions. If the hand of change is knocking at your life\u2019s front door, selling your home may be unavoidable. You may need to move for a job, a family medical crisis, or divorce. In this case, market conditions take a backseat to more pressing personal priorities.<\/p>\n One of the high points of the homeownership experience is witnessing your property increase in market value. Not only does it give you more equity<\/a>, but it also positions you for a profitable sale. If you have lived in your current Austin home a long time, or if property values in your neighborhood have increased to the point where you have earned a significant amount of home equity, now might be a good time to sell your Austin home<\/a> and cash out.<\/p>\n Use HomeLight\u2019s free Home Value Estimator<\/a> to get a preliminary snapshot of your home\u2019s current value.<\/p>\n For many older Austinite homeowners, downsizing<\/a> may be more than a desire, it may be a necessity, either for financial, mobility, or other health reasons. If maintaining your home has become difficult, now might be a good time to sell.<\/p>\n Perhaps you need more room<\/a> because your family is growing. Or maybe an elderly relative or child must come to live with you in Austin. Maybe your employment changed, and you need a home office. The need to upsize can play a big role in your decision to sell now.<\/p>\n Sometimes homeownership can occur unexpectedly. If a family member passes and you inherit a property that you\u2019d rather not keep, market conditions won\u2019t be as significant of a factor when determining the best time to sell.<\/p>\n Assuming you haven\u2019t invested much in the property, the best time to sell is whenever you\u2019d like to be free of the responsibilities that come with owning the home.<\/p>\n If you have a second home that\u2019s underutilized, selling it now will mean no longer paying property taxes and maintenance expenses. Now may be an optimal window to be a seller who isn\u2019t also trying to buy a home.<\/p>\n Let\u2019s say you\u2019re relocating from Austin\u2019s Hyde Park neighborhood to a craftsman home in the North Loop neighborhood, and you have the financial means to pay cash for your next home. This means that you\u2019re less likely to incur financial losses from the sale.<\/p>\n Because of changes in your income or other financial setbacks, selling your Austin home now may be the only way you can avoid potential foreclosure.<\/p>\n Now that we\u2019ve covered some of the top ways to identify a good time to sell, we\u2019ll next go through circumstances that mean it\u2019s likely wise to wait to sell a home in Austin<\/a>.<\/p>\n Waiting to sell your Austin home could be your best option depending on a variety of circumstances that can create unfavorable selling scenarios. The times to consider waiting might include:<\/p>\n When interest rates go up, home values and offer prices can come down. That doesn’t necessarily mean it\u2019s a bad time to sell, it just means you will want to carefully evaluate your selling objectives and consider if you might benefit from waiting.<\/p>\n Yes, upsizing<\/a> can be on both the Austin \u201csell now\u201d and the \u201cwait to sell\u201d lists. Is your desire to upsize based on a crucial need, or just because you think it would be nice to have the extra space? Unless there is a pressing immediate need, the cost to purchase a larger home now may become a burden, especially if other factors will add additional costs, such as higher interest rates or a lack of equity. Waiting until better selling conditions arise might be a wiser long-term financial decision.<\/p>\n If you haven\u2019t lived in your home long<\/a> and haven\u2019t built up significant equity, you might risk selling it at a loss if you list it during neutral or buyer-favorable market conditions. Unless you have to sell for personal reasons, it\u2019s likely best to stay put and focus on building more equity. Waiting might also give you the opportunity to sell during market conditions more favorable for sellers.<\/p>\n When supply is high and demand is low, selling your home may not be as profitable<\/a> as you would like. This is because buyers have a lot of options, which means you\u2019re competing with more sellers. However, the caveat to this is that if you\u2019re buying as well as selling<\/a>, you\u2019ll also benefit from the increased inventory as a buyer.<\/p>\n \u201cIf you sell for less now, that also means you\u2019ll be spending less if you\u2019re moving and buying,\u201d says Leonard. \u201cIt obviously depends if you\u2019re moving to a house in the same area or moving to a different market. If a seller wants to stay in the Austin market, then they\u2019ll have negotiating power in their new home purchase. You really have to look at the overall situation.\u201d<\/p>\n A home that needs a lot of work can turn away potential buyers looking for a turnkey property<\/a>. Typically, to get top dollar for your Austin home, you are better off completing any remodeling projects before placing your house on the market. If your home is in poor condition or has incomplete renovations, then you may get offers below the value of similar homes in your area.<\/p>\n However, sellers in this situation should be selective about the improvements they make to their property. Apart from obviously necessary repairs like fixing a leaky roof or plumbing issues that could be flagged during an inspection, and improving curb appeal, making unnecessary upgrades that don\u2019t yield a favorable ROI<\/a>, could amount to financial losses.<\/p>\n \u201cI don\u2019t necessarily suggest a lot of remodeling because the buyer may not like what the seller does,\u201d says Leonard. \u201cA lot of it depends on the competition in the area and the sale price they\u2019re trying to achieve. Interior paint can go a long way, and making sure that the front landscaping makes a good first impression is important.\u201d<\/p>\n If you are content with your existing Austin home, and it fits your current needs and budget, waiting to sell might be the best decision. It\u2019s difficult to time the market, but selling a house you love when interest rates and inventory are higher likely won\u2019t yield the best outcome. It is better to wait until you have a desire to sell and then reassess market conditions.<\/p>\n When mortgage rates hit record lows between 2020 and 2021, many people seized the opportunity to refinance their mortgage rates instead of opting to buy a new home. Since then, mortgage rates have increased substantially over the past year. Selling now would mean losing the refinanced rate and incurring current higher rates, which would mean more of your monthly mortgage payment will go toward interest rather than principal.<\/p>\n The recent rise in home prices can be a double-edged sword. It\u2019s great when you\u2019re on the sell side but if you are not in a financial position to make your next home purchase, or if the cost of transitional housing is beyond your current reach, now may not be the best time to sell your Austin home. Keep in mind that when buying a home with a mortgage you\u2019ll be subject to current interest rates and will likely need funds for a down payment and closing costs<\/a>, agent fees, plus any maintenance or staging costs that you may need.<\/p>\n Capital gains taxes<\/a> are another consideration. Although the state of Texas doesn\u2019t have a capital gains tax, the federal government does. You may be exempt from paying taxes on your sale proceeds for as much as up to $250,000 for single filers or $500,000 for joint filers if you owned the home for a total of at least two years in the five-year period before the home sale, and you used the home as your primary residence for a total of at least two years in that same five-year period.<\/p>\n Buying and selling a home are some of the biggest financial decisions of your life. For many people, their home is their largest financial asset, and so the decision to sell must be considered thoroughly. Although renters have more freedom to move on a whim, homeowners could incur financial losses if they don\u2019t plan their home sale carefully, which includes thinking about the best time to put their home on the market. If you don\u2019t have a well-thought-out plan but are sure you want to sell, an experienced real estate agent<\/a> can help you come up with a clear game plan.<\/p>\n Even if you keep pace with up-to-date information about the housing market and your equity situation, deciding whether to sell your Austin home now or wait often comes down to a battle between your heart and mind. Selling a home is a lot of work even with an agent\u2019s help. If you\u2019re busy, preoccupied with other things going on in your life, or ambivalent about the decision to sell, chances are that it might be best to wait.<\/p>\n\n\n\n\n\n Get a near-instant real estate house price estimate from HomeLight for free. Our tool analyzes the records of recently sold homes near you, your home’s last sale price, and other market trends to provide a preliminary range of value in under two minutes.<\/p>\n \n ![\"homelight](\"https:\/\/www.homelight.com\/blog\/wp-content\/themes\/ccprototypev5\/images\/logo-small-cta.png\"){kind=logo}
\n <\/div>\n \n Partner With a Top-performing Austin Agent<\/h3>\n
When to sell your Austin home<\/h2>\n
If mortgage interest rates are low<\/h3>\n
If Austin\u2019s housing inventory is low<\/h3>\n
If you need to relocate from Austin for a job or other life change<\/h3>\n
If your Austin property value has significantly increased<\/h3>\n
If you are ready to downsize your Austin home<\/h3>\n
If you need to upsize your Austin home<\/h3>\n
You\u2019re selling a second or inherited home in Austin<\/h3>\n
You can pay cash for your next home<\/h3>\n
You can\u2019t afford to keep your Austin home<\/h3>\n
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If you sell for less now, that also means you\u2019ll be spending less if you\u2019re moving and buying. It obviously depends if you\u2019re moving to a house in the same area or moving to a different market. If a seller wants to stay in the Austin market, then they\u2019ll have negotiating power in their new home purchase. You really have to look at the overall situation.<\/q>\n
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When to consider waiting to sell your Austin home<\/h2>\n
If mortgage interest rates are going up<\/h3>\n
If you\u2019re upsizing for non-crucial reasons<\/h3>\n
If your Austin home hasn\u2019t built much equity<\/h3>\n
If Austin\u2019s housing inventory is high<\/h3>\n
If your Austin home has unfinished major repairs or renovations<\/h3>\n
If you\u2019re happy with your current Austin home<\/h3>\n
If you recently refinanced your Austin home<\/h3>\n
If you can\u2019t afford to move<\/h3>\n
If you will face steep capital gains taxes<\/h3>\n
If you have no clear game plan or objective<\/h3>\n
You aren\u2019t mentally ready to sell your Austin home<\/h3>\n
\n <\/div>\n \n What's Your Austin Home Worth?<\/h3>\n