If the time has come, that your home is just too large, too much room, too much work, then start to prepare in case it is time to downsize. A lot of emotion can be tied up in selling a home, where you raised your children, and grandchildren, had family gatherings, and various get…Details
The prospect of selling or buying a home is twofold; if the decision to sell or buy is the right one; and once the choice is made, when is the right time?
There are essentially four major reasons why and when people sell or buy: financial and market conditions, employment changes, family matters and lifestyle changes. Any one of these could affect your fundamental decision to sell or buy, it can also greatly impact your options regarding when.
Financial and market conditions
Every aspect of real estate involves market conditions and financial issues–for Seller and Buyers alike . The seller who is putting property, equity and sometimes, years of hard work on the line and the buyer who often are signing on for years of payment .
With so much at stake, it’s imperative that Sellers and Buyers contact a real estate professional. Only experienced Realtors have the hands-on intimate knowledge of the real estate industry needed to get a fair price and protect your interests.
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 and of course if you’re buying then you’ll want to buy in a buyer’s market. For those looking to do both this is where the aid of a Realtor is extremely important.
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.
With interest rates right now at their lowest in decades. This has lead to unprecedented opportunities for those wishing to buy. Often, mortgage payments will be less than rent on a similar type of property that people are currently renting. 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/fall. Although this is only one factor to be considered when selling/buying. In Ontario, spring/summertime tends to be a time of higher activity as Buyers with children especially prefer to look in this time in order to settle in a new home before school begins in the fall and the opposite for fall/wintertime as previously explained. This can cause different types of markets during the same calendar year, a seller’s market in the spring/summer and a buyer’s one in the fall/winter.
Employment changes can affect a decision to sell/buy. There’s the obvious matter of relocation if a new job or promotion takes you to a different city. In this case, selling/buying most often becomes a necessity.
Moving to a smaller urban centre may allow you to purchase either a similar home for less money or a bigger one for a similar amount. 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. Likewise if moving to a larger urban centre may cause you to move to a smaller space for similar or even more money and is imperative to consider before taking a new job or promotion.
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.
The family issue seller’s and buyer’s cite more than any other when deciding to move 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.
Although we don’t like to think about it, divorce or separation is another large family issue we see involving homes. Some issues that arise when this happens, neither party has the ability to pay for the home on their own, neither wants the reminder of their previous relationship in the home, one party “buys out” the other party or both are just looking for a fresh start. Divorce is not a simple process, know that whatever outcome there is with the sale of home, your Realtor is working on behalf of both parties.
The most common lifestyle change that motivate sellers is retirement. For those planning to retire, truly enjoying your latter years may involve a move. It’s wise to look far enough ahead in order to use the market to your advantage to either sell or buy at a good price. Looking at trends and demographics is only the starting point. Arranging to speak with an experienced Realtor to aid you through this process is always a great place to start.
Another common lifestyle change is marriage, which sometimes sees a lot of real estate transactions in a short time. If each side of the happy couple already owns their own property, they may each be selling, as well as buying a new matrimonial home. Whatever the case, help from a real estate professional is not far away. If you need help with any real estate needs, contact The Price Real Estate Team at 519.663.9411.