Common Selling Mistakes
Sellers Frequently Asked Questions
Whether homeowners are selling their home, cottage, land or business in Stokes Bay, Pike Bay or Tobermory they often come to us with similar questions.
What Your Home Isn’t Worth
Many homeowners find it confusing that there are various numbers floating around that indicate their home value. Here are a few:
- Property tax assessment. Each area uses a formula to establish home values for a tax assessment, but this price rarely correlates with the market value of your home. Your tax assessment can be higher or lower than the current market value.
- Homeowners insurance value. Insurance estimates are based on the cost of replacing your home without the land, so this value is is not market value.
- Mortgage balance. Your mortgage balance simply reflects your home loan. The difference between your loan payoff and the market value of your home is your equity.
- Neighbor’s home value. Even if your neighbor’s home is similar to yours, it’s not likely to be identical. A REALTOR® can help you evaluate your home’s worth in the context of other nearby properties. Every home is different in some way
- Cost when you purchased the home. Regardless of how long ago you purchased your property, the value can have gone up or down. The Current Market Data will tell us
- Desired value. You can always try to put your home on the market for your desired price, but if you’ve over- or under-priced it, you’re shortchanging yourself. because you’re either selling too low or your house could sit on the market and eventually sell for less than if you priced it correctly in the beginning
1. 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.
2. Are There Costs Involved in Selling?
Unfortunately, the answer is yes. Even if you think your home is perfect, you may have to do some minor repairs or upgrades to make your home more attractive to potential purchasers.
- A professional home inspection may be a condition of the offer. If the inspection points to problems, your purchaser may ask that you make the necessary repairs or choose not to close the deal.
- Closing costs, such as lawyers’ fees or unpaid taxes, will also have to be paid.
- Mortgage discharge fees may be levied by your lending institution.
- Sales commissions must be paid as defined by your listing agreement
3. Buy or Sell First?
That’s tricky. After all, if you find a purchaser for your existing home, before you’ve found a new one, you may find yourself living out of a suitcase if convenient closing dates can not be negotiated. On the other hand, if you find your dream home before you’ve unloaded your old one, you may be faced with carrying two mortgages for a time.
So how do you manage? Easy. Do your homework and have a good idea about the neighborhood and type of home you’re looking for. Do an honest evaluation of your family’s needs and budget.
Speak to your RE/MAX agent and start your new home search as soon as your existing home hits the market. ( know wher you want to be)
If you’ve found a home, before you’ve sold your existing one, use “sale of your existing home” as a condition on your offer. If you don’t sell your house within a fixed period of time, you can choose not to go through with the offer. This, however, is a difficult condition for many vendors to agree upon and you may find that you have to forgo your price negotiating power.
Purchasing a home before you sell could be a risky strategy if you’re counting on the proceeds from the sale.
If you’ve found a purchaser before you’ve found your next home, use “purchase of a new home” as a condition when you sign back the agreement. Again, it will only be for a fixed time. Even if you have not found the ideal next house by the time the deal closes, you may still wish to proceed with the offer. As a buyer with a “sold house” you will be in a better position to negotiate price.
4. Understand the Agreement of Purchase and Sale!
It is important to understand the Agreement (the Offer). Take a look at this explanatory form & discuss it with your Realtor!
If you are looking to sell your Hepworth, Miller Lake, or Owen Sound cottage / home, we can help answer all of your questions throughout the entire process!