Selling your beloved home will be one of the most significant decisions you will ever make. It does not only involve financial considerations but emotional and practical reasons also play a role in selling the property. You could be thinking of selling your home for several reasons – a lifestyle change, seeking to capitalize on the current market, or maybe you found a better home. However, knowing if you are doing the right thing is important. This article gives you a clear idea of what factors to consider when selling your home, signs that you are ready, etc. We’ve made it easier for you to clearly understand all aspects of selling a property – the prerequisites, tax calculations, the best time to sell your home, and much more. Let’s dive deeper into the concept and know if selling your home is the right choice for you or not.
Common signs that you are ready to sell your home
Are you not sure if this is the right time for you to consider selling? You are feeling similar to hundreds and thousands of others who are yet to identify if they are making the right choice. When looked at closely by the experts, they found some common signs of a perfect time to sell a property. Homeowners who are ready to sell their property will quickly relate to these signs. If so, consider these as a hint that you might just be thinking right.
The seller’s market is thriving
Everyone willing to sell their property has a common goal of making a profit. If the market conditions are favorable, you should take it as a green light to put your home on sale. How would you know though that the market is right? Start by doing some research on your level and by talking to a trustworthy real estate agent.Â
Signs that the market is booming can include an increase in the price per square foot of real estate in your area. The best indication of all is if your neighbors have recently sold their property and got a great deal.
Your house is too smallÂ
Is your home too small for you now? There could be several reasons for that – you have had children, sudden change of lifestyle, etc. If you are working from home and need a home office, you should consider selling your home for a more comfortable and spacious home. Hence, if for any reason, your home seems too small to be comfortable to live, you can think of selling it.
Your house is too big
The contrary is also true. It is possible that you could be living in a much bigger home than you need. While some may disagree on moving into a smaller home, it could turn out to be more beneficial for your finances. You could be saving on higher maintenance, and homeowner costs in general. You could use the profit you made and the savings you will make for investing in other mediums.
You are financially stable
If your finances are in order, you are good to sell your property, and if not, just drop the idea. This is as simple as that. It is even more important when you are looking to buy a bigger home. A bigger home equals bigger expenses and you should be able to comfortably manage them. If you don’t have any debt on you or have enough emergency funds, it could be a sign that you are ready to sell your home.
You are emotionally prepared for the selling process
Selling your home is no joke. It is an emotional journey that you must be ready to take on. You will be putting in a lot of time and energy to prepare your home for selling. Finding the right person can also be daunting. You will also have to leave behind all the memories your family made there. Ensure You are ready for the process when deciding to sell.
After losing a loved one
The death of a loved one such as parents/siblings can cause major changes in the family. This incident can be a reason for selling a home. Apart from the emotional reason behind selling, a spacious house that once accommodated more members may not be suitable for the remaining family members. Additionally, if the house belonged to the deceased, the successor may want to sell the home for financial or personal reasons
Current property trends and economic factors influencing the decision to sell
Property trends in major indian cities
- Delhi-NCR: In Q3 2024, Delhi-NCR experienced the highest annual increase in housing prices among major Indian cities, with a 32% year-on-year rise. This surge is driven by strong demand in residential and commercial sectors and infrastructure developments.
- Bengaluru: Bengaluru saw a significant increase in housing prices, contributing to the overall 11% year-on-year rise across India’s top eight cities. The city’s booming IT sector, improved connectivity, and influx of professionals continue to fuel real estate demand.
- Mumbai Metropolitan Region (MMR): MMR recorded a 6% increase in housing prices, reaching ₹20,275 per square foot from ₹19,111 per square foot. Limited land availability, redevelopment projects, and luxury housing demand have supported consistent price growth.
Impact of interest rates, government policies, and economic factors
- Interest rates: The Reserve Bank of India (RBI) has maintained the repo rate at 6.50% for eleven consecutive policy meetings as of December 2024. A reduction in the cash reserve ratio (CRR) by 50 basis points to 4% was implemented to inject liquidity into the banking system, potentially lowering borrowing costs and encouraging home buying activity.
- Government policies: The 2025-26 budget introduced personal income tax cuts to increase middle-class disposable income. This move is expected to boost consumer spending and stimulate demand in the residential housing sector. Additionally, government incentives for affordable housing and infrastructure projects continue to positively impact real estate trends.
- Inflation: Elevated inflation rates contribute to higher construction costs, often passed on to buyers through increased property prices. Inflation also affects household budgets, influencing affordability and property purchasing decisions. In high-inflation environments, some sellers may expedite property sales to capitalise on peak prices before potential market corrections.
Why is now the best time to sell your home
Homeowners often shrug off the idea of selling their home thinking that maybe the timing is not right. They can not be blamed totally. Our economy hasn’t been very predictable and home selling isn’t a breeze either.Â
However, as per the property experts and continuous upward trends seen in the real estate industry pan India, this could be the perfect time to sell a property if you are thinking about it. Have a look at why this is the right time:
Housing sales are estimated to rise
Housing sales across India’s top 7 cities are expected to witness double-digit growth in FY25. The total area sold in the Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Bangalore, Hyderabad, Pune, Kolkata, and Chennai is likely to increase 10-12% to 785-800 million sq ft. this year itself.
Average housing prices increased
Housing prices across major Indian cities have seen notable growth. Delhi-NCR recorded a 32% year-on-year rise in Q3 2024, the highest among top cities. Bengaluru witnessed an 11% annual increase, while the Mumbai Metropolitan Region (MMR) experienced a 6% rise, reaching ₹20,275 per square foot. This trend reflects strong demand, robust infrastructure development, and favourable economic conditions.
Continued an upward trend
Prices are expected to continue on an upward trajectory in the coming years. We are witnessing this trend after remaining stagnant for years. Housing prices have appreciated by an average of 14%.
Stable economic conditions, positive buyer sentiments
Stable economic conditions and positive buyer sentiment is helping the Indian residential property market thrive. We have witnessed the highest residential sales to date in the first quarter itself.
Indian residential real estate sector experienced remarkable growth
Over the past few decades, the Indian real estate sector has seen remarkable growth. A higher GDP is also impacting the market positively with an increase in demand for residential, commercial, and industrial spaces.
Upcoming festive season
The most active season in India for selling property is the festive season, which usually starts in September and goes on till December end. During this time, buyers are actively looking to buy, and hence, you could bag a great deal for your property during this time.
Main reasons why you should sell your house
There are many reasons why you should sell your house. We’ve already discussed the common signs earlier. Whereas, these are some key factors that might further influence your decision to put your home on the market. Now, take a mental note and tick off each of these key factors that resonate with you to see how they might influence your decision to put your home on the market.
Earning a profit
If your homes value has increased dramatically, selling it can be an excellent way to get good returns on your investment. By selling at the proper time, you can earn a healthy return to fulfil other life goals.
Your family is growing
If you are expecting a child or planning for more space as your children have grown, you can consider selling your home for a larger property.
You are not happy with your location
You may find your neighborhood not so suitable in the long run. Increased traffic, noise, or fewer amenities around the area can make selling your home a wise choiceÂ
You are nearing retirement
As you approach retirement, you may want to upsize or downsize as per your conditions at the time. Selling your old home could be a wise choice if you are looking for a retirement-friendly community or a place that matches your retirement plans.
The Market is favorable
When the market is booming, it can be a reason to sell your home for a profit.
Financial needs
Job loss, medical expenses, or the need to reduce debt can make selling your home necessary. Using your property, you may be able to address your financial needs.
Reasons why you should not sell your home
While selling your home might be an exciting opportunity for some, it is also important to know the reasons why you should drop the idea. These reasons further help you weigh your options more carefully.
Earning a quick profit: If you are thinking about selling your home just for the sake of a quick profit, it’s better to not. Have a chat with a professional real estate agent to understand current market conditions and then make an informed decision.
Minor home repairs needed: Selling just for the sake of avoiding manageable repairs and fixtures is not always a good idea.
Boredom with the space: If you are bored of your home’s appearance, consider redecorating your space instead of selling it.Â
Pressure from friends or family: Do not get influenced by your friends and family if the market conditions and your personal needs do not match. Selling your home under pressure can lead to regret.
Fear of future market decline: Selling out of fear that the housing market might decline can be premature. Market conditions fluctuate, and long-term value often outweighs short-term concerns. Market conditions don’t remain stable for long and you should not sell your home only based on your fear about the future market conditions.
Sell or renovate your home: which is better?
Both selling and upgrading your home have their advantages and disadvantages. You might need to compare the two before making your decision. Knowing the right answer to what will best fit your situation and long-term plans can be very advantageous for you.Â
| Consideration | Sell your home | Renovate your home |
| Financial gain | Potential for immediate profit, especially in a favorable market. | May increase property value, offering long-term financial gains. |
| Current market conditions | Sell if the market is strong to maximize returns. | Renovate if the market is weak or unstable; hold off on selling. |
| Emotional attachment | Harder to part with a home filled with memories. | Maintain sentimental value by staying and improving the space. |
| Lifestyle needs | Offers a chance to move to a location or home that better fits current needs. | Tailor your existing space to better suit your lifestyle without moving. |
| Cost and effort | Selling involves costs like agent fees, closing costs, and moving expenses. | Renovating can be costly but may be cheaper than buying a new home, and avoids moving. |
| Time commitment | Typically quicker to sell and buy a new home than to complete a renovation. | Renovations can be time-consuming and disruptive to daily life. |
| Long-term plans | Selling might be better if you plan to relocate or significantly downsize/upsize. | Renovate if you plan to stay in your home for many years and want to improve it. |
| The desire for a fresh start | Selling offers a clean slate and the opportunity for new beginnings. | Renovating allows you to refresh your space without the upheaval of moving. |
Should you sell your house or rent instead?
Financial goals, market conditions, and personal circumstances, all impact the decision to sell or rent your home. While selling in a profitable market can be advantageous, renting could also turn profitable for some as it generates a steady income stream and allows you to retain ownership. Now, what to choose will depend on various factors. Let us observe critical factors to consider for both selling and renting.
Selling your home: Selling offers instant access to the money blocked in your property, that you can use to purchase a better home. Selling also cuts down the hassle of managing a rented home such as repairs and damages, dealing with tenants, etc. Hence, if the market seems favorable and you can get a significant benefit, selling may be a better option for you.
Renting out: Renting on the other hand can be more suitable for people who are planning to return to the area in the future or if they want to keep it to build long-term wealth. It can also be lucrative if you are only in need of a steady income. However, you have to take into account the expenses of maintaining the property and dealing with the responsibilities of a landlord.Â
It is suggested to do an in-depth study of the market and have a clear understanding of your financial situation and long-term goals to understand if you should sell or rent your home.
How to sell your home fast in 2024?
It’s a good idea to know the current real estate values in your area before listing your house. Recognize the dynamics between supply and demand for real estate in your community. Also, it is preferable to maintain competitive pricing if there are many options available to the buyer in your neighborhood, as much negotiation will not be possible.
Avoid selling the house too quickly and then regretting that you sold it for less money. Additionally, carefully assess the state of your house. Are there any distinguishing features that can help you fetch a competitive price? If the home is well-located, has excellent connectivity, and has excellent internal and external infrastructure, buyers are willing to spend a good price. The state of the property is another important factor. Make sure the property is painted and dented before listing it for sale.
The size of your property is important when selling. Comparatively speaking, 2BHK apartments rent out and sell out more quickly than 3BHK apartments.
Housing.com POV
Selling your house can be a strategic decision to unlock home equity, especially in a favorable market. It allows you to capitalize on property appreciation, address changing lifestyle needs, or relocate for personal or professional reasons. Additionally, selling can simplify finances if You are looking to downsize or access funds for new investments. It’s a practical option when staying no longer aligns with your goals or financial plans.
FAQs
What are the main reasons to consider selling your home?
While there can be many reasons to consider before selling your home, you should at least consider the current market conditions, your financial situation, and your long-term goals.
How long should you live in your home before selling?
As per the Indian real estate standards, you should at least stay in a property for at least 5-7 years before selling.
Should you sell or rent out your property?
Both selling and renting your property can have its benefits and drawbacks. While selling can provide an instant cash flow for financial needs or to buy a new home, renting is more suitable for those who want a steady source of income and if the market conditions are not favorable.
What are the tax implications of selling a property in India?
Properties held for more than 24 months are subject to long-term capital gains tax. You can choose to be taxed at 12.5% without indexation or 20% with indexation benefits.
When is the best time to sell your house in India?
In India, the best time to sell a house is considered to be around the festive season (September - December). During this time, the demand for properties is high and hence, you have a better chance of getting good returns on your real estate investment.
What are the benefits of holding onto your property instead of selling it?
Holding onto your property can yield long-term financial gains, provide rental income, and preserve personal and emotional value while avoiding selling costs and market risks.
