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.
Ontario
Real Estate Association