What does a "Seller's Market" mean for a Seller?
If you’ve been following the real estate market over the last few years you have likely noticed some crazy increases in both the prices of, and demand for, properties in Norfolk County. Sounds like a dream for anyone selling that purchased before 2017 right? Well that depends on if you are trying to buy in the same market.
How can you be ready to sell?
Know your numbers - Where are you at in your mortgage? If you’re in a closed mortgage then the penalty to break it can be steep. How does this affect you? Let’s say you decide to pay off your mortgage completely, want to change financial institutions or downsize financially, it could cost you many thousands of dollars. Be sure to remember expenses for selling such as staging, small repairs and/or renovations to prepare to sell, real estate fees and storage rental. Buying costs include land transfer tax, inspections, legal fees (for both selling and buying), moving and possibly a short term rental if dates don’t line up.
Get pre-approved - This isn’t just for buyers, you have to know what you can afford for your next place. Has your job changed for better or worse? How is your credit and debt load? Are you employed in a permanent, full time (not on probation) position? With the current climate, it is SO important that your income is secure between sale and purchase dates or there’s a possibility that the mortgage approval may be revoked.
Choose your Agent early - It’s important to click with your partner in this journey so don’t be afraid to interview a few different people. Ask friends and family, do your research and decide on one that you’ll commit to. It makes everything smoother when you know someone has your back. In a crazy market like this you NEED to work as a team and have open and honest communication.
Shop Local for your Agent: Your real estate professional should be local to where you are selling/buying so it’s totally normal that you work with two different agents throughout your move. We are experts in our area and can recommend someone awesome almost anywhere across Canada if we need another team member to get you where you want to be.
Figure out where you’re going next - Are you trying to stay in the same community or school catchment? Are you looking to be closer to family or work? Maybe you’re working from home permanently and the opportunity is there to live somewhere you would rather be. If you are hoping to rent next, rather than buy, it’s messy out there so be prepared for some challenges. When properly priced most properties in our trading area will sell within 2 weeks, so you can’t “wait and see” if you are only moving for a specific reason/place that has to be secured first.
Work with your Agent and determine a game plan - Will you be “Coming Soon”? Is staging something that would bring value to your sale? Do you need to repair/renovate first? Is it worth it to do so? How about “holding offers”? And MOST importantly, thoroughly discuss the comparables and decide on a listing strategy when it comes to asking price. That’s not an easy task but it’s one of the most important.
Learn about your market - Will you be expecting an offer with a sale condition? How long should it take to sell your house? Who will your Buyer be?
We could go on and on because we REALLY believe in keeping you informed but we’ll stop here ;) If you want to connect and talk about other questions you might have, we are always here for you!