face a double quandary when 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?
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.
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.
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.
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
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.
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 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.
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
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.
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.
| Live | Work
| Play | Study