Selling your home is not only a big decision financially, but also emotionally. Your home is no longer the bricks, drywall and hardwood floors you fell in love with when you bought it. You have tackled some of life’s many milestones and made memories in the house you now call “home.” Whether you have simply grown out of the house, are choosing to downsize, or are looking for a new location, there are many factors that may influence your decision to sell your house.
It is not a decision you can be cavalier about, so you will need to perform your due diligence, research the market, and speak with a real estate agent.
Check Your Finances
Is it time to cash out and tap into your home’s equity? Do you want to downgrade and use the proceeds to pay down your debt? Is your current home creating too much of a financial headache for you and your household? Remember, home prices continue to remain sky-high across the Canadian real estate market, and much of the appreciation for the last few years has remained intact. As a result, you can use this to your advantage and sell your home to downsize your living arrangements and overall lifestyle.
Do some research to determine the payoff amount of your loan so you can determine what your sales proceeds will be after you have paid off all the costs associated with selling. The closer you are to the end of your mortgage term, the less additional expenses you will incur.
Do Some Comparisons
Doing your homework is always important! Do some research on the current condition of the real estate market, and look into some comparable properties that have recently sold in your neighbourhood. You may want to consider selling when it is a seller’s market.
Is Your Home Ready to Sell?
We have all heard of the many ways you can improve your home to get the biggest return on your investment when selling. While you may not want to make any major improvements, it’s important to ask yourself if your home is in its best condition to sell. At the very least, you need to ensure you have the time to give your home a good deep clean and de-clutter to ensure it is prepared for showings when the time comes. Take into consideration the length of time it will take to do this to determine a time frame for when you can realistically list your home.
Four Questions to Ask Yourself
Take a second to think about your answer to these four very important questions. If you’re happy with your answers, you may be ready to sell, and if not, it may be worth it to continue weighing the pros and cons of your decision to sell or speak further with a real estate agent to get their opinion.
- After selling this home, where will you move?
- Are you still emotionally attached to your current home?
- Are you financially ready?
- Are you willing to make changes to paint colours, or upgrades to the home?
When is the Best Time to Sell a House?
Most real estate professionals will tell you that the best time to sell would be the spring, followed by the fall. Spring is desirable for many sellers as it is a great time to showcase your home’s best features, and many buyers want the transaction to be completed before the summer months. It’s important to remember that since it is the busiest time of the year, you will face more competition, increasing the importance of making sure your home shows at its best.
Lower Interest Rates
The Bank of Canada (BoC) is on a rate-cutting crusade as it is now attempting to give the Canadian economy a boost. Like the Federal Reserve to the south, the central bank believes that inflation is heading sustainably toward the two per cent target while the labour market cools off. Why does this matter for buyers and sellers? Homeowners could now list their houses for sale, possibly move up to a large home, and take advantage of lower mortgage rates. Additionally, lower mortgage rates could spur demand, fuelling competition for your unit and garnering above-asking prices.
According to the Canada Mortgage and Housing Corporation (CMHC), the average rate for a conventional five-year fixed mortgage is below six per cent.
Fewer Listings
While industry experts anticipate higher sales activity heading into 2025, supply has yet to catch up to demand. New housing construction trends have been solid this year, but inventories are still below long-term averages. According to the Canada Real Estate Association (CREA), there were 183,450 homes for sale at the end of July. This was up nearly 23 per cent from a year ago, but they were ten per cent below historical averages of roughly 200,000 for this time of the year.
“While it wasn’t apparent in the July housing data from across Canada, the stage is increasingly being set for the return of a more active housing market,” said James Mabey, Chair of CREA, in a report. “At this point, many markets have a healthier amount of choice for buyers than has been the case in recent years, but the days of the slower and more relaxed house hunting experience may be somewhat numbered.”
School-Aged Children
You and your significant other moved into your home because you needed the extra space for your newborn baby – or babies. Now that they are nearing school age, you might want to consider your elementary school options. Indeed, not all schools are created equal; the school in your neighbourhood might be overcrowded or not the best. And, of course, it may not be possible to enrol your children in a school outside of your district. Therefore, if you wish to have your children attend a better school, you may need to relocate to a better part of the city or province.
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