If you’re thinking about selling your house, it’s important that you establish your objectives with your Realtor early on in the process. To help you decide on your objectives, ask yourself these questions:
1. Why am I selling?
2. When is the best time to sell?
3. How much money do I expect to receive?
4. What other goals do I hope to achieve by selling?
Why should I sell?
There are many reasons why someone might sell their house. Perhaps you have a new job. Maybe you have a new child and need more room. Here are some of the most common reasons one might choose to sell and what to do if you find yourself in these scenarios:
If you have been offered a new position in your company and you have to relocate, ask your employer if they are willing to help. Ask them if they would be willing to pay the real estate commission on the sale of your house. Perhaps they would be willing to cover your moving costs. Some employers may be very generous and offer to buy your house from you so you can have your equity from the house to use as a down payment on your next house. If you do go this route, just make sure to check with your Realtor about the current fair market value of your home. If you just received a pay raise or promotion, you may be able to afford a larger home or move to a better neighbourhood. Selling your house and trading up will enhance the long term benefits of owning a house. Retiring from your job may also be a reason for selling. You might want to travel or buy a retirement property and would benefit from the equity in your home. Of course, the downside might be that you have lost your job and your income. If you’re faced with this situation, talk to your lender and your Realtor to come up with the best solution.
Family changes are the most common reasons for selling. If you are getting married or having children you might be thinking of a larger home or moving to a neighbourhood near schools. When your kids leave for college or university, you might find that you don’t want to stay in a large house anymore.
3. Financial Position
If you are a homeowner, you might want to sell for financial gain during a strong sellers’ market. Or you might sell if you think the market will shift to a buyers’ market so you can keep some of that equity you have worked hard to build. Low mortgage rates could be signaling a time to sell because the market gets stimulated during this time.
Sometimes, owning a house can be tedious. You may feel that the condo lifestyle would be a better fit for you. Maybe you live in a condo and want to have the privacy of a house. Perhaps you want to leave the city entirely and find some peace and quiet in the country.
When should I sell?
So far, we’ve looked at why you might sell your house, but the more important question to ask is when you should sell your house. When you have decided to sell, you might want to get it done as soon as possible, especially if you have a job in another city to get to. Most of the time, you have some flexibility when selling. In this case, you might want to consider selling during a sellers’ market so you can get the highest possible price for your house.
Over time, your house is one of the best investments you can make, but there are cycles in the market that might affect your decision to sell. These cycles can create a shortage of homes which will usually push up property prices. On the flip side, there could be a surplus of houses, which usually slows down rising house prices.
The economy is the driving force behind these cycles. During times of growth, people are confident in their financial futures and are therefore ready to invest in real estate. If there is a downturn, this might increase the amount of houses up for sale because of unemployment. It can get a bit complicated if you’re not an economist thinking about these fluctuations every day. If you don’t have time to keep track of the economy, your Realtor is the best resource for gaining knowledge of the current market.