Thinking of selling your home but not sure if now is the right
time? Talk to a REALTOR for sound advice on when to sell your home in
the least amount of time for the best possible price.
First a REALTOR will help you examine your reasons for wanting
to sell. The most common reasons why people decide to sell their
homes include changes to their financial status, an employment
transfer, a growing family or retirement. Todays low interest
rates have also made it attractive for many homeowners to move up to
a larger home.
Whatever your reason, selling a house is a complicated procedure so
its imperative to have a qualified real estate professional on your
side. Because selling a home involves large sums of money and
complicated legal documents, a REALTORs expertise can help a homeowner
avoid costly mistakes.
Real estate cycles
Buying your home was probably
the best investment you ever made. Thats because over the long
term, real estate has proven to be a sound investment while at the same
time offering you and your family shelter and a feeling of pride of
However, real estate is subject to the law of supply and demand
which creates cycles in the market. A shortage of homes generally
means prices rise. This cycle is commonly known as a sellers
market. Alternately, a surplus of homes can result in a slow down
in home sales or even a reduction in prices and is often referred to as
a buyers market.
One of the most important services a REALTOR provides is market
analysis. Most people don't have the time it takes to conduct the
comprehensive market research required to accurately price a
home. A REALTOR can give you up-to-date information on what
economic and other factors are impacting current market conditions.
Which market is best?
Obviously, you will want to sell
your home quickly and for the highest possible price. In a
sellers market, you often see many buyers competing for the same
house resulting in top prices - sometimes even over the original list
price. However, if you are planning to purchase another home after the
sale, chances are you will be competing in the same sellers market
faced with higher prices.
In a buyers market you may find you have to wait longer to sell
your home for a fair price. The upside to selling your home in a
buyers market is youll have more selection and pricing options when
you go looking for your new property.
Although the current market cycle should influence your decision to
sell, remember there are trade-offs to selling in either a buyers or
sellers market. Some people are concerned that if they trade up to a
larger home in a buyers market they will lose some of their homes
equity in the sale. But, while you may sell your home at a discount,
its likely you will purchase your larger home at an even greater
discount. The advantage is you then own a larger asset with even
greater potential for appreciation.
In Ontario, changing seasons and the
weather can affect buyer demand. For example, fewer buyers may be out
looking at homes during the cold and snowy winter months, but as a
seller you will be competing with fewer homes on the
market. Spring tends to be an attractive time for real estate
sales as gardens start to look nice again and people come out of
hibernation. Buyers with school-aged children like to purchase in
the spring so they can move in over the summer. However, homes
sell throughout the year so think of the season as only one factor in
deciding when to sell your home.
There are many important issues that come into play when deciding to
sell your home. A REALTOR can help you to determine if now is the
best time for you.