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.
© 2003 RE/MAX International, Inc. All rights reserved.
Allan
Todd, REALTOR®
416-640-0734
|
|
Re/Max
Professionals Inc., Brokerage
1645 Dundas Street West
Mississauga, Ontario
L5C 1E3
Phone:
905-270-8840 or 416-640-0734
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