Buy first or sell first?
One of the most common questions in real estate is whether one should buy or sell first. And, the answer is largely driven by one's financial resources. Clients that have the financial ability to carry two homes, for a period of time, may decide to buy before they sell. The advantage is they are under no pressure to buy and can wait until they find the ideal home. The disadvantage, besides carrying two homes for a period of time, is that they do not know what they will receive for their home. They also carry the risk of a change in market conditions which could be positive or negative. Extending the closing period on the purchase will reduce the risk of holding two homes, but is not always achievable and is subject to negotiation.
If one does not have the financial resources to carry two homes., then there are two primary ways to avoid the financial risk. The first way is to sell first and then buy. This has the benefit of certainty in terms of selling price and resultant available funds. The disadvantage is how one houses oneself until one finds a new home, and avoids buying or renting a less than ideal home. This risk can be mitigated by negotiating a long closing period, which allows time to purchase a new home or find suitable rental accommodation. The second way is to make the offer to purchase the new home conditional on the sale of the existing home. The disadvantage is that such a condition is unattractive to sellers, and they are likely to be less negotiable on price, and in a competitive bid situation such a condition may result in failure. It is important to be able to provide comfort to the seller that the buyers' home is ready for listing, and will be priced at market value.
Every situation is unique with different considerations and weighting to the advantages and disadvantages. It is important at the outset for me to consider the details of my clients situation and advise and work with them in developing an appropriate strategy. Please give me a call to discuss your situation.
What is my home worth and what is the best strategy for selling my home?
While your home is your private oasis in this world and the place you live, it is also a valuable investment. And, when it becomes time to sell, I want to help you realise the highest value for your home in the shortest possible time. This requires an individualised strategy for selling your home. Starting with the necessary preparations to best showcase your home, professional staging, the appropriate pricing strategy and marketing process to gain maximum interest and exposure. Thereafter negotiations need to be managed to achieve the best possible result.
Each of these items takes special expertise.
Pricing requires a detailed comparison to recent comparable sales, coupled with a comparison of different features and likely dollar impact to derive a price that I think your house will sell for. Following that analysis we can discuss pricing strategy. We may decide to list high and test the market, or list at close to expected sell price, or we may price below expected sell price with the objective of creating competitive tension.
The importance of preparing your home and staging it, cannot be underestimated. This requires a careful look at the home and its features and bringing these more into line with the expectations of buyers. It is worth spending some time on this and possibly investing some money in your home to align it with current buyer expectations. As needed, I will work with a professional stager to ensure that your home is presented to the market in a manner that will help maximise its value.
Exposure and marketing of your property goes way beyond listing on MLS and putting up a sign. Marketing on social media is becoming more and more important, as well as working with my broader network of agents to find potential buyers who would otherwise not be exposed to your home.
Properly managing the negotiating process when it comes to the offer stage is critical in getting you the best outcome. My past experience in mergers and acquisitions gives me significant expertise in this regard. My objective is to maximise our negotiating leverage, astutely advocate and justify the selling price and your interests, try to manage the process to obtain multiple offers, and keep offering parties motivated and engaged.
|Agent Commission||Approx 5% plus HST||Listing Brokerage||At Closing|
|Legal Fees and Disbursements||Approx $1,500 plus HST||Own Lawyer||At Closing|
|Utilities and property Tax Adjustment||TBD||Own Lawyer||At Closing|
|Moving Expenses||TBD||Own Mover||At Closing|
|Pay Mortgage||TBD||Bank/Mortgagee||At Closing|
|Mortgage Termination or Portage Fee||TBD||Bank/Mortgagee||At Closing|
|Property Inspection||Approx $500 plus HST||Own Inspector||Before Listing|
|Property Survey||Approx $2,000 plus HST||Own Surveyor||Before Listing|
- The Levy Family
- Nancy M
- Nick S
- Dorota O