The 'Whys' and 'Whens' of Selling your home
Homeowners
face a double quandary when faced with the prospect of selling their
homes: how does one make sure the decision to sell is the right one;
and once the choice is made, when is the right time to sell?
Traditionally, there have been four major reasons why and when people
sell their homes: financial and market conditions, employment changes,
family matters and lifestyle changes. In today's economy, one
additional issue has emerged which has great bearing: low interest
rates.
All these will not only affect your fundamental decision to sell, but will greatly impact your options regarding when to sell.
Financial and market conditions
Almost every aspect of real estate involves market conditions and
financial issues--for the seller they are of the utmost importance.
After all, it's the seller who is putting property, equity and
sometimes, years of hard work on the line.
With so much at stake, it's imperative that sellers contact a real
estate professional. Only Realtors have the hands-on experience and
intimate knowledge of the real estate industry needed to get the best
possible price for your property.
We've all heard of "buyer's" and "seller's" markets. These terms refer
to the proportion of people wanting to buy versus the number of homes
on the market. If the number of homes for sale outstrips potential
buyers, then it's a buyer's market. If there are not enough homes to
satisfy demand, then it's a seller's market.
If you're selling for financial gain, you'll obviously want to do so in
a seller's market. But, if you plan to purchase another home after
sale, there isn't as big a difference as you would first think.
In a seller's market, you may sell your home more quickly and for a
better price, but you'll be facing the opposite challenges when
purchasing. In a buyer's market, you may have to wait longer to get a
fair price, but you'll have more selection and pricing options when
looking for your new property.
Right now, interest rates are near their lowest in decades. This has
lead to unprecedented opportunities for those wishing to buy. Often,
mortgage payments will be less than rent on an apartment or townhome.
Therefore, a large number of consumers are considering ownership, many
for the first time. For sellers, this holds the potential for a huge
boom.
"Seasonality" is a term that Realtors use to gauge when home sales are
expected to climb. Although this is only one factor to be considered
when selling, in Ontario, springtime tends to be a time of higher
activity. Buyers with children especially prefer to look in the spring
in order to settle in a new home before school begins in the fall.
Employment changes
Employment changes can affect a decision to sell. There's the obvious
matter of relocation if a new job or promotion takes you to a different
city. In this case, selling most often becomes a necessity unless the
homeowner wishes to retain a property for investment or other purposes.
Moving to a smaller urban centre may also allow you to purchase either
a similar home for less money or a bigger one for the same outlay. Even
if a new job does not require you to move a great distance, you should
use the opportunity to assess your home ownership needs and move up if
you can.
The reality is that with interest rates as attractive as they are, it's
more possible than ever to make a major move without lowering your
family's standard of living.
Family issues
The family issue homeowners cite more than any other when deciding to
sell is children. Most often, people want a bigger home to accommodate
a newborn, or may find their family has simply outgrown the home.
If this is the case, you're in a perfect position relative to today's
marketplace. First and foremost, you can afford to put in enough time
to sell at the right price and then find a home that suits your
requirements. Contacting your Realtor well in advance of the date you
wish to move will virtually guarantee you'll find a good home at a good
price.
Lifestyle changes
The two most common lifestyle changes that motivate sellers are
retirement. For those planning to retire, truly enjoying your latter
years may involve a "cashing in" of assets. Again, it's a wise to look
far enough ahead in order to use the market to your advantage and sell
at a good price.
Changes in lifestyle can include things such as buying a condominium to
ease the workload involved with maintenance and upkeep; city dwellers
who want to live in a more rural environment, or even those who want to
set up a home business.
Source: Ontario Real Estate Association
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