INSURING YOUR HOME
Is it a good time to sell my house?
Deciding when to sell your house can be difficult. From timing the property cycle to emerging from the post-COVID chaos, you might be wondering whether it’s a good time to sell. Here are some things to consider when making the decision.
What are some good reasons to sell my house?
The best time to sell your house can depend on your personal circumstances. Some common reasons people decide to sell their homes include:
- downsizing or upsizing
- unlocking capital
- realising profit from your investment, and
- funding your retirement.
Remember, it may not be best not to sell during a turbulent time in your life, or if you’re unable to showcase your home in the best possible light for some other reason.
Does the time of year matter when selling my home?
Typically, spring is thought to be the best time to sell. This is because gardens tend to thrive during spring, and buyers often hope to move into a new home by Christmas. However, this might also mean there’s more houses on the market, which can make it harder for you to capture the attention of buyers.
Autumn is the next biggest season for sales, likely due to the temperate weather and the fact some buyers may have missed out properties during spring.
Winter and summer are generally quieter selling periods, but this might be an advantage if you’re looking to sell in a less competitive market.
How does the property cycle work?
There are four property cycles to be aware of:
- value, during which prices are flat, and
- growth, when prices begin to rise
- peak, when prices rapidly reach high levels, and
- correction, when prices become moderate again.
To figure out which cycle your area is in, try speaking to a real estate agent. You can also look at recent sales in your area and compare it to historical data, which can easily be found online.
No matter which phase the market is in, it’s also smart to consider the following factors before putting your house up for sale:
- your personal long and short term financial goals
- general economic outlook
- any notable infrastructure projects in your area, and
- the overall price growth or decline.
How can I gauge demand before selling my house?
Use online tools to keep an eye on sales and auctions in your area. They might reveal how many buyers are showing up to auctions, giving you an idea of demand.
In the wake of the COVID-19 pandemic, some areas have also seen fewer properties being listed, which may lead to increased demand. At the same time, it’s important to get a sense of people’s willingness to attend in-person auctions and inspections in your area.
What should I know about selling in the aftermath of the COVID-19 pandemic?
Depending on where you live, you might find that there are fewer property listings today than before the pandemic. If so, buyers may have fewer properties to choose from, which can generate greater competition for quality homes. At the same time, it is important to gauge buyer sentiment in your area.
What do I need to know about insurance when selling my house?
One thing that sellers sometimes overlook is insurance. Consider maintaining your insurance, even if you’re not living in the house when selling or you’re still waiting on settlement.
It’s simply too risky to have ambiguity during the selling process. What if a pipe bursts after you’ve accepted an offer, but before you’ve handed over the keys? Or what if a prospective buyer has an accident while inspecting your property?
By the same token, you should also mitigate any hazards at your home. This might include child-proofing your pool or taking your dog to a friend’s place when you have showings.
Finally, bear in mind that insurance obligations might differ from state to state, so always stay on top of your unique situation.
How to sell your house with confidence
While there’s no perfect time to sell your house, the above tips may help you make an informed and empowered decision. Be mentally, emotionally and financially prepared for challenges along the way, like the house sitting on the market for longer than expected.
- Things that could void your Home & Contents Insurance
- How to calculate your home insurance
- Do I need to insure my new home before settlement?
Underinsurance is when you have insufficient insurance to cover the full amount needed to replace or repair your home and/or contents, in the event of needing to make a claim. If you need to claim and you’re underinsured, you could be left with pretty hefty out-of-pocket costs.
On the other hand, over-insuring is paying for too much cover. Unfortunately, premiums you pay for over-insuring can’t be refunded. So, it’s important to work out how much cover you need.
Insurance issued by AAI Limited ABN 48 005 297 807 trading as GIO. Consider the Product Disclosure Statement before buying this insurance.
This advice has been prepared without taking into account your particular objectives, financial situations or needs, so you should consider whether it is appropriate for you before acting on it.