Oh No! I Sold My Home!

ce4a9f30cb42bf341ab2aa815aed136a_real-estate-sold-sign-lindsay-house-sold-sign-clipart_1000-750Are you afraid to sell your home in case you can’t find one to buy?

This seems to be the impasse  many potential sellers are stuck at. The market right now has such a low inventory of homes to buy, many people are putting off selling, even though they have many reasons that now would be a good time to sell.

If you are in this position, you have a lot of things to consider.

By not moving, are you putting off plans that would be better for your family?
Financially, is now a good time to sell?
If you haven’t sold your home, can you buy your dream home if it came on the market tomorrow?
If you can’t find your dream home, are you willing to rent a property until you find the right one?
Are you tired of carrying the household costs on large home that is more than you need?
Can you afford to own two homes?

If you are being held back by one of these concerns, or another not mentioned, take some time and determine whether there is a answer should you sell your home and become “homeless”.

Are you fortunate enough to have a second home where you could live temporarily while waiting for the right home to come on the market?
Are you prepared to rent accommodation while looking for the right house?
You might be able to negotiate a long closing on your current home, to allow you time to find the right home.
Do you have family members with extra space for you to stay with if the need arises?
Is there another solution which would enable to you move now?

Not everyone is prepared to put their home on the market without knowing where they are going next, but maybe you are.

Being homeless is not as bad as you might think. I sold my home last summer, and am currently renting a home while I look for just the right property. Is it perfect?, no, but it provides the freedom to be in control when I do find the right property. As a buyer with no home to sell, and the ability to match most any closing date a seller might request, I am in a good negotiating position.

So, are you ready to put your home on the market? Be sure to call one of our Coldwell Banker Community Professionals to discuss what your options are.

Is Now a Good Time to Buy a Home?

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There is no “one size fits all” answer to this question. It is not always a good time to buy depending on your stage in life and your future plans.

The recent changes in the mortgage qualification rules have either taken some buyers out of the market entirely, or reduced the price of the property they are qualified to buy. This has prompted some buyers to become creative, whether by having family or a friend go on title of their new property, and be included in the mortgage calculation, or by borrowing money to increase the downpayment to over 20% to avoid the higher threshold of qualification. Both of these approaches have their risks, and should be carefully considered before using one of them to buy a home. It is possible that now is not the time for you to buy. Perhaps taking more time to increase your downpayment, or time to consider what you really need in your new home is the right approach. It is possible that a lower price home may be the right fit for you right now.

Some ‘experts’ are predicting that home prices will ‘adjust’ (as in decrease) due to the new mortgage rules, as fewer buyers will be able to qualify at the current price levels. We have not seen this happening in the market as of yet, but it is possible. We are seeing less competition for homes compared to the frenzy we saw through the spring and summer.

If you are fortunate to not be subject to the rules for less than 20% down, now may very well be a great time to buy a home. If you are at the stage in life of downsizing, you can maximize your sale price on what is likely your biggest asset, and reinvest in a lower price home. If you are upsizing, it is hard to beat the current mortgage rates that are being offered. One of the big banks just increased their mortgage lending rate, but we have not seen any others as of yet. The Bank of Canada has indicated that they may even decrease the bank rate, which might result in lower still mortgage rates (hard to imagine!)

If you are an investor, with mortgage rates where they are, and the number of people in the rental market, now is a great time to buy that duplex/triplex etc.

As you can see that answer to the question I posed is perhaps. There are many things to consider. How long do you intend to live in the home you are buying? Are you starting a family? Are you retiring soon. These are just some of the questions to ask yourself. The best way to find out what is the right answer for you is to call one of our Coldwell Banker Community Professionals and discuss your current wants and needs, and perhaps even more important discuss your future plans. They will help you determine what you can afford to buy, and if it is right for you. It costs you nothing, but may very well save you a lot of heartache in the future.

Time to Renovate? or Time to Sell?

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Did you know that in our community, renovating is becoming one of the largest sectors of discretionary spending?

The discussion around renovating your home, often becomes a discussion of whether you should renovate and sell, or maybe renovate and stay. Often when families start to discuss moving, it is to correct problems they see in their current home. Sometimes these issues can be fixed by a simple renovation, such as a bathroom that needs a facelift, or refinishing a floor. Other problems such as not enough room, or needing one floor living when you own a two storey home can be more complex. When you begin to consider building additions, or repurposing main floor living spaces, it pays to fully consider your options. The cost of renovation may well out pace the value of the renovated home.

Another time families discuss renovating is when they have decided to move. Many times families downsize, or decide they want to enjoy condo living instead of maintaining a property, or perhaps just a change of area. In these cases, much thought should be given to renovating to place your home on the market. Studies show that some renovations will result in you increasing the value of your property by the amount you invested. Two examples of this are kitchens and bathrooms. You should always keep in mind that this is not always the case.

You should always consult with a professional when you are considering spending money on your home before selling.  Often buyers have entirely a different idea on how they would renovate your home if they were to buy it.  A larger percentage of home renovations are completed by people after they buy a home – ususally within the first 12 month of living there….

If you have questions, or are considering a move, call one of our real estate professionals.  They know their community and can help guide you in the right direction.

Buy First? Sell First? Which is the Best Way to Go?

Like the chicken and the egg, there is much discussion whether you should sell your home before you buy the next, or vice versa.

Our local real estate market, where homes are selling fast, and there is not a lot of housing inventory, has made some people question whether there is a right way to move on… a one size fits all solution.

There are benefits (and negatives) to both buying first and selling first. Let’s consider the options:

Buy First, Sell After

• You can take your time to find just the house you want
• You can take advantage of low interest rates – take the uncertainty out of the equation
• You can have time to do renovations/improvements to the new home before moving in, limiting the disruption to your routine.
• This approach does require you to have the willingness and the ability to potentially carrying the costs of both homes for a period of time.

Sell First, Buy After

• You know exactly how much money you have to invest in the next property
• You will not take the chance on being pressured to sell your home in order to finalize your move
• You do not have the costs of bridge financing your purchase

There are other considerations also when looking at these choices:

• Do you have somewhere to live should your home sell before you find the perfect one to buy?
• Do you have somewhere to store your personal items should you need to?
• Can you handle the financial pressure of owning two homes?
• Does your current mortgage (if you were moving it to the new property) have any penalties if there is a time lapse between property ownership?
• Have there been any properties available that meet your requirements recently? Is it likely that if you sell first you will quickly find what you are looking for?
• Do you know exactly what you are looking for?

If you are wondering how you should handle your move, call one of our qualified sales professionals. They will be able to sit down with you and discuss all the advantages and disadvantages of the two approaches, and help you make the right decision for your move.