When is the Right Time to Sell?
Are you thinking about capitalizing on the real estate market but not sure if the timing is right?
Well that depends.
What’s your next move?
If You’re Trading Up
Most people think they should sell when the market is at its peak to get the most for their home. When in reality, it’s less expensive to trade up in a market when values are not skyrocketing 25% year over year.
Trading up is just that…trading your current situation for a better one. One that will improve your quality of life, get your kids into a better school district, that will impact your future wealth building, and allow you to live the future you have been envisioning. Many people underestimate the impact their home has on them; if you’re ready to make changes but are holding back, make sure those reasons have a larger impact on your livelihood than what you would gain by making your next move.
In our experience, we’ve helped move the door frame with the kid’s growth charts to make that transition easier!
If You’re Downsizing
A majority of homeowners who are downsizing typically own a home at a higher price point than average priced homes (which have a bigger market and greater demand), so they tend to be less sensitive to market fluctuations. The sale price can therefore be far more influenced by a specific buyer.
Downsizing is also regarded as a move motivated by significant life changes and lifestyle goals. Assuming there are no major corrections in market, the timing should be based on your goals and when the time is right for you to move on.
Not quite ready? Consider leveraging your equity and investing in your next property now – rent it out until it’s time to leave…you’ll be selling in future dollars but moving at present day value.
Think Hyper Local
Media headlines that the sky is falling in the real estate market can drive some homeowners to retreat and forget about their goals.
What is happening across Canada – even what is happening on the other side of the DVP – can be dramatically different than what is happening in your specific neighbourhood. As a general rule, Toronto’s Eastside (think Riverside, Leslieville, the Beach) have proven to be resilient and insulated from much of the value fluctuations – particularly when values drop in other markets.
The only way you can understand your home’s true value is from a thorough Comparative Market Analysis. This should be conducted by a full-time, professional agent in your market who knows comparable homes and market conditions cold. Check out our established best practices for this process.
It should be noted; macro-economic conditions must be considered in relation to your financial position and security. This ensures your next move is pushing your personal wealth forward in the long term.
How Can You Maximize Your Sale Price?
There are a few key factors that will affect the value of your home and the sale price you achieve.
Clearly this is one thing you can’t change, but a proper comparative market analysis will ensure the right pricing strategy to drive the best offers.
This you can control. In fact, we are such believers in this, we have built our entire approach around client care and providing that extra step – through advice on renovations, providing staging, etc. – to help clients achieve more for their home.
Strategy & Negotiation
Your home is typically your largest financial asset. Working with a trusted, proven professional does make a difference. How an agent prices the home, how they run offers, their relationship and strength in dealing with other agents, their knowledge of the market will ALL make a significant difference…to the tune of tens of thousands of dollars.
What’s your Why?
Finally, have a good long think about your reasons…is the agent logical, emotional? We’ve guided many clients through this conversation and sometimes the answer is to stay in their home. It’s truly about your goals, priorities and comfort level.