Are you thinking about selling your house? Do you keep wondering if now is the right time? After all, those four walls are full of so much history. In many ways, your house is the most valuable thing you possess.
The housing market is unclear right now, which is only made worse by recent news reports made by Global News claiming that Canadian real estate has become unaffordable for many people.
You likely wonder whether you should sell your home right away or perhaps wait for a later time.
Obviously, selling your house is a major decision in any case. Homeowners are usually nervous about selling because selling at the correct time can improve both your financial situation and way of life and selling your house at the wrong time can cause you to lose money on your investment and leave you with regret for many years.
The Housing Market
Housing market analysts anticipate a year of escalating property prices and persistently high demand in 2022. The housing shortage will probably persist after a busy year with many eager buyers and few houses for sale, though it will gradually lessen. Although there is still a high demand for houses, there aren’t as many of them on the market as there once were in many Montreal areas. As a result, it is still a seller’s market, which is advantageous for homeowners who decide to sell now.
You have a few options if you’re debating whether to sell your home: you can list it soon to capitalize on the current demand or you can wait to see how interest rates and inflation develop in relation to housing (though doing so may result in missed opportunities), or you can decide to remain in your present home for the years ahead.
As of July 2022, the market consensus on the mortgage rate forecast in Canada is for the Central Bank to increase mortgage interest rates by another 0.75% in 2022 from 2.50% to a high of 3.25%.
Below we’ll discuss a few of the different reasons you should or shouldn’t sell your property now. We’ll discuss equity, financing, debt and all of the emotional parts of selling your home and whether selling is a good option for you or not.
You Should Sell If
You have the necessary funds to buy
Most people who sell their homes quickly buy new or even better ones. However, if it was your first time buying a property and you didn’t have all your finances in order, you likely discovered a few things the hard way. It is very possible that something could go wrong, especially when your entire paycheck goes toward your mortgage.
Start by carefully examining your assets. It’s a strong indication that you’re financially stable enough to buy a home once more if you’ve paid off all of your non-mortgage debt.
As you already know, there are various expenses involved in buying a new house such as a Building inspector, a notary, your down payment, mortgage loan insurance, and all of the various taxes included.
With the money you’ll make from the sale, you can settle all of your debt
In fact, people do this. Many people have sold their homes in order to pay off all of their debt. Although quite extreme, if done correctly, it can actually be a good financial decision.
Here’s how to decide when to sell your home in order to pay off your debt:
- You have enough capital to pay off both your current mortgage and your debt, which includes anything from credit cards to auto loans to medical bills to personal loans to education loans.
- Second, the proceeds from the sale of your home will be sufficient to cover the cost of a new home.
You’re mentally prepared to sell
If your finances indicate that you are ready to go forward, that’s good! However, just because the figures indicate that you should sell your home doesn’t mean that now is the time to do so. Remember that selling your house can also be an emotional process. Ask yourself this question for a moment before putting the “For Sale” sign in the front yard: Am I really ready?
- Do I have the time and energy to prepare my house for potential buyers?
- Am I intent on keeping it prepared to present for a number of weeks or months?
- Am I prepared to learn why prospects think my home needs work?
- Am I prepared for straightforward—and perhaps difficult—negotiations about the asking price for my house?
- Am I prepared to leave the home where my family has spent many happy times?
You need to move
It’s still achievable to sell your house and get a new one if you need to move for whatever reason. If you’ve recently been fired, you might be concerned about how you’ll be able to keep up with your mortgage payments. Selling can be a solution in this case.
Lack of inventory can help your home sell if you live in a market where home sales are moving quickly, particularly if your property is priced below the neighborhood entry-level range.
You Should Wait to Sell if
You’re nervous about finding your next house
A strong seller’s market comes with the condition that you as a seller can find it difficult to find a new home. Knowing there might not be much to buy could really discourage an existing homeowner from selling.
You may broaden your searches to include new construction homes, but development is being slowed down by supply chain concerns, labor shortages, and red tape related to zoning and permissions.
You’re not sure that you’re able to afford a new home
Early on in the Covid-19 pandemic, worries about being able to afford a home were more likely to be accompanied by employment instability. Businesses were finding it difficult to adjust to the economic impact of the global health crisis and were frequently experiencing pay cuts, layoffs, and furloughs across Canada and all over the world.
However, today, if you’re concerned about being able to afford your next home, it’s more likely related to the housing market’s constantly increasing costs, the scarcity of new properties for sale in the market, or possible equity issues with your current home. If you believe the time isn’t right to sell your house, don’t be hesitant to wait.
There is no need to worry about what might occur in the future. Although real estate cycles and price levels may occur, buyers, mortgage lenders, and builders are currently making wise choices in preparation for a secure future.
You recently refinanced your property
There’s no reason to think about selling your house any time soon if you’re one of the countless homeowners who just refinanced. Hopefully, the reduced monthly payments from your refinanced mortgage have eased your financial difficulties.
Have You Decided?
The choice of selling your house now or later is not easy and it can even be a bit emotional. For most people, moving is a big deal.
You should work with a professional you can rely on. To help you make decisions that are best for you and your budget, they will provide you honest advice. The best agents prioritize customer service over sales. But they also know how to close deals when the moment is right. They approach their many responsibilities, which include the following, with confidence and experience.
- promoting your house to gain as much attention as you can
- advising you on improvements or maintenance that will improve the appearance of your home
- taking care of all the necessary paperwork
- helping you determine the appropriate price for your house
- guiding you as you bargain offers
- arranging viewings with prospective buyers
We hope that this blog has guided you in the right direction. Should you choose to sell, the team at Abbey & Olivier will advise you and support you in every step of the process.