Yorkregionmls-Sellers Tool Box-Resources for home sellers in York Region

When Is The Best Time To Sell?

When is the Best Time to Sell Your Home? Everyone seems to have specific ideas on when the right time is to sell. Some base their theories on the overall economy, while others will tell you that there are key buying months that you'll want to capitalize on. If you're not buying and selling strategically or for investment, the best time to sell is really when you feel your existing home will not meet your future needs. The best reason to purchase a new home is to take advantage of your family and lifestyle changes. Do you wish to be closer to a school? Are you switching jobs? Do you have an aging parent to care for? In Canada, weather and holidays do play a factor. Almost no one goes house hunting around Christmas, and few give up their summer vacations. Of course, those with school-aged children are less likely to move during the school year and summer is an ideal time. In some areas, there is a definite "spring cycle" -- perhaps it's a bit of spring fever and a wish to break out of the bonds of winter. Some gamblers look for winter bargains and then try to sell their homes during the spring cycle. But overall, that could be more tension and aggravation than you wish. And the monetary results may be disappointing. Another key factor to consider is the economy. Are interest rates higher or lower in comparison to your current mortgage? If they are higher, you may want to stick with your current home, as your new mortgage payments could be uncomfortable. If rates are lower, you might be able to trade up to a more expensive home without a significant increase in your monthly mortgage obligation. What's more, if it's a buyers' market, you may be in a strong position to purchase a new home, especially if you have accumulated some equity in your current property.

The Window Of Opportunity

Price Right… From The Start

When a home first goes on the market, there is an initial surge of interest that should be maximized. Therefore, your home should be priced realistically from the start.

This chart illustrates that most sales are made in the first two or three weeks a home is listed. Because all this activity happens so soon after a home is listed, it is a mistake to assume you can ‘test the waters’ with an extremely high price and then later reduce it. Homes should be priced correctly, right from the start.

Understanding Market Conditions

Understand Market Conditions The real estate market is in constant flux, not only as a whole but in particular areas as well. Knowing what is going on in the overall and local real estate markets will help you understand how these conditions can affect the sale of your home. We've designed the following chart to help give you an overview of the three significant market positions. When you meet with your agent, ask about the current state of the market.

1. Buyers' Market: The supply of homes on the market exceeds demand. Characteristics: High inventory of homes. Few buyers compared to availability. Homes usually stay on the market longer. Prices are stable or perhaps dropping. Implications: Buyers spend more time looking for a home, and when they negotiate, they usually have more leverage.

2. Sellers' Market: The number of potential buyers exceeds the supply of homes on the market. Characteristics: There is a smaller inventory of homes with many buyers. Homes sell quickly. Prices usually increase. Implications: Prices may be higher or perhaps climbing. Buying decisions must be made quickly. Conditional offers may be rejected.

3. Balanced Market: The number of homes on the market is roughly equal to the demand. Characteristics: Demand equals supply. Sellers accept reasonable offers. Homes sell within a reasonable time period. Prices generally remain stable. Implications: There is less tension among buyers and sellers. There is a reasonable number of homes to choose from.

Negotiating Your Offer

Negotiate the Best Terms Possible After many discussions, your agent will know the minimum conditions, acceptable closing dates, and lowest price you'll accept from a potential purchaser. Make certain that your agent also has some leveraging power with chattel you're willing to agree to in the offer. By knowing your parameters, your agent can work with the potential purchaser's agent to create an offer that will be acceptable to you. After all, it comes down to bargaining and persuasion, and your ROYAL LEPAGE agent is one of the top in this field. The Offer from the Seller's Viewpoint Interested buyers will submit an offer to your real estate agent through their agent. Your agent will take you through the offer to ensure that you understand all aspects of it. Before you accept or sign back the offer, you may wish to take the offer to a lawyer and make certain that ever detail is legally accurate and in your best interest. Your offer will contain: The names of the potential purchaser. Your name. A description of the property. The conditions they wish to attach to the purchase: - price - closing date - chattels - survey - home inspection An irrevocable date (you have until this date to accept, or sign back a counter offer). It may also contain mortgage details (for instance, the purchaser may wish to assume your mortgage or may wish you to discharge it). Very often, the first thing vendors look at is the offer's purchase price. Remember that it is not all yours. You'll have to pay your: - lawyer - real estate agent - bank (for the balance of your mortgage and for any prepayment or discharge penalties) - taxes (if there are any outstanding) On the bright side, you'll probably have pre-paid a number of things like utilities, and taxes, so you'll be getting additional funds as well. Your Lawyer Here's what your lawyer will do to assist you in making the sale of your home hassle-free: Do a complete review of the purchase agreement. Provide answers to the purchaser's lawyer regarding title. Prepare transfer of title documents. Review any mortgage transactions. Close the transaction. Pay the appropriate commissions. Pay any outstanding claims against your property. Pay off your mortgage (if necessary). Forward the balance of the money from the sale to you. Provide a complete statement reporting all transactions Evaluating the Offer Before the first offer even comes in, you should have in mind, how low you'll go on price, what conditions you'll accept and what terms would be agreeable. Then, when an offer comes in, you have a set of criteria by which to evaluate it. Scrutinize all of the details, chattels, closing date, conditions, address and description of your property, provisions and deposit. You and your agent will thoroughly go over every detail. If there's anything you don't understand, ask! Accepting the Offer Once you're satisfied that offer has met your criteria, you'll want to accept it. To ensure that your purchaser won't get cold feet, you'll want a deposit. The deposit will be held by your ROYAL LEPAGE agent and when the deal is closed it will be applied to the commission owed.