You're looking to buy a house. How do you know when it's the right time?

Charlie Munger once said "the time to buy a house is when your wife tells you to". Google price-to-rent ratio over decades to understand market trends. Over a 30-year span you'll be fine; it doesn't matter when you buy. Real estate should be viewed as an investment. Could your money be better utilized elsewhere? Despite owning multiple properties, I choose to rent, focusing my finances on further investments. To evaluate a property's investment potential, calculate its yearly net income (if rented) after Principal, Interest, Taxes, and Insurance, maintenance, and other expenses relative to the down payment, that's your return over investment.

Understanding the pros and cons of a seller's market is the first step to determine if now is the time to sell your home. More info on my profile - quick read.

Our first recommendation is always to know what you´re looking for, what would be your ideal home, and then to think if you can afford with your current budget. There are other options...but, before that you, first, need to know your needs and what your ideal home (location, size, style...) would be.

Assuming you are already a homeowner and want to sell your house & then buy another house, the 1st key is to make more than the average increase. According to Zoopla house sales in 2022 made an additional +£67,000. The difference between what was paid and what it sold for. Beating the average is always a good sign. This obviously depends on the size of your house. The average house in the UK is valued at £285k, so you want to buy it at £285k and sell it at a minimum of £352k. You can track your house price by signing up to Zoopla who will send you valuations every month. The average stamp duty is £12.5k, so a good time to sell is when you can make a clear £50k. Less stamp duty, estate agents, etc. aim for when your house has made +£75k.

Whether an issue is right or wrong can be subjective depending on the context. However, determining the optimal timing for a home purchase requires clarity on several key aspects. Specifically, the individual must have a well-defined sense of their desired outcome as well as the financial bandwidth to both acquire and sustain the property. Considering both aspirations and means in a rigorous fashion is integral to making a decision that will stand the test of time from a practical perspective. With due diligence applied to understanding requirements and capabilities, one can confidently assess whether the current environment affords a suitable timing or necessitates waiting for more favorable conditions.

It´s always possible to research the market in the main online or offline sources or to visit real estate agencies. Outside of that we always recommend to research the market even if you think that you know it...surprises may appear. Whoever fails to prepare needs to be prepared to fail.

Time is described as "everything"...we would say that time is not only "everything" but another factor. If someone is pressed to sell, the negotiation power would be lower and the price would normally be lower. On the other hand, if someone is not pressed at all and can easily move in to another house without having to sell the previous one, the negotiation power would be clearly higher. Timing is another negotiation factor and it can play in your favor.

Knowing what your limits are is essential, completely important before making an offer. You wouldn´t be the first one making an offer that cannot be maintained and losing the retainer fees or first installment. Before making an offer be sure that you can assume the risk and the final payment. Of course, paying cash up front or being able to make a quick transfer without the need of a mortgage would help the potential buyer in getting a better price. Having the money ready to be invested is another negotiation factor.

The one who fails to prepare needs to be prepared to fail. If you go to a negotiation without knowing what you want, your limits, the market price, and, at the meeting with the seller you don´t get to know the limits, price asking, reasons to sell, and some other important aspects...you deserve to fail. Information is a key element at a negotiation. Flexibility on date, repairs, renovation, furniture...and some other elements can help you get the negotiation to you on better terms. There are other options if you cannot or are unwilling to negotiate, hire a professional. (Real estate agent, attorney, tax advisor...and some other professionals could help you).

Assess your own skills and knowledge realistically. What can you actually check on your own during the purchase and where do you lack the specialist knowledge? It is worth spending money on a competent consultant and specialist at this point of the buying process, because if you make mistakes, it can be much more expensive later on. Do you already have experience in negotiating a purchase contract? If not, then there may be considerable risks in the draft of the contract that you cannot recognize on your own. In addition to legal issues, you should not underestimate the technical aspects. The condition of the house is a decisive value-forming factor that can only be judged by a construction expert.

The right time to buy a house is generally between about 8.30am and 5.30pm, otherwise you are likely to find that the estate agent, solicitors and banks required for the purchase have gone home already.

The right time to buy a home is when you are ready to do so. When you have the financing nailed down, you know what you can and cannot afford, and your family is ready to move up to a larger home or you are a first-time purchaser. No one can time the market. No one knows for sure where it's going. In the last forty to fifty years, you could have bought at any time and realize a gain as long as you held the home for twenty years and kept up with the maintenance. My main points here are to know you won't be moving anytime soon, and you can afford the purchase. I have a different perspective on second homes and investment properties.

Steve raises an excellent point. To take this further, as lawyers and bankers are prone to boozy lunches, you might want to start by 10am, lest a claret-soaked brain makes a slip causing delays or disputes.

This is practical advice. However, I cannot agree entirely. By 5:30pm there is a significant risk that the transaction will not be concluded by close of business. This could lead to gazumping, or other unfortunate scenarios. In the case of houses, I would recommend commencing the commencing by 3pm at the latest. This could be extended to 3:30pm for apartments.

The right time is also when you have to money to buy it. If not then the deal will not go through or you will be guilty of squatting.