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The Most Important Decision When Selling Your Home

 Selling Your Home Or Buy Your Next Home First?

This is the number one question my partner and I get asked when consulting clients, and one that you should ask yourself before selling your home. I’ll start by saying that there is no perfect answer or best way that works for everyone. Below we will cover the main points to consider when selling your home to buy another property and practical strategies you can use.

Selling Your Home First

The main concern with selling your home first is “What if we can’t find a place to move to in time?”. This is the primary concern for people coordinating a sale and purchase at the same time. The benefits of selling your home first is taking advantage of opportunities (lack of competition), controlling your sale, and knowing exactly what your final sale price and conditions are. The potential downside is that you now have a set time limit on finding your new home.

First, if you have the opportunity to sell a property with no other competition in your neighborhood that is a big advantage. Second you can control your sale by having time on your side to negotiate and firm up on any conditions as offers come in. Thirdly, when you do have a firm deal in place you know exactly what the property has sold for. Any conditions have been taken care of and the closing date set. This means you can confidently shop within your budget given the sale price of your property.

Buying Your Next Property First

For most movers the main concern is being able to actually sell your home once you have purchased your new one. Being on the hook for 2 mortgages can be scary. Thankfully, we are currently in a sellers

market in Waterloo Region and Wellington County. If you price and market your home appropriately the sale should not be a major concern. That being said, if you are able to find and purchase your home before selling your you can ensure that you have purchased for the right price at the right time. Purchasing first can allow for more time to shop and negotiate offers. Furthermore purchasing first provides you with time to prepare your home for market as you shop for your new one.

Realtor Considerations

From a realtor’s perspective our focus is to manage the goals and needs of the client with current market conditions. When selling your first home here are some key points to consider:

  1. How common is your home and the property you are looking to purchase? The more common, the easier it will be to either purchase or sell in a shorter time frame if need be. If the property you are selling is uncommon, or has a smaller buyer pool than most properties, selling first may be your best option.
  2. For people selling your first home that NEED to get a certain price to make your move work then selling first is your best option. If 1-2% difference either above or below your listing price is not going to kill your move then consider purchasing first.
  3. Short term financing is not a bad option. If you are concerned about matching closing dates for your move don’t panic. Bridge financing can allow you flexibility between closing dates. Ask your mortgage broker when consulting them about your moving plans. You may be surprised with your options!
  4. Prepare yourself either way! If you’re selling first, go view some options as you prepare your property for market. You can shop while it is listed too. For purchasing first, get your home ready to list so when you have locked down your next property it’s good to go. Get your place cleaned, staged, photographed and ready to sell.

There is no perfect solution for every client. Each situation and the desired goals are completely different. To make an informed decision as a buyer and seller you should consider the pros and cons of each option.

Contact Us For More!

Stay connected with us on Facebook and our blog for our future tips, resources and advice on selling your first home!

Drop us a comment below OR send us a message directly: zack@primepropertieson.com / 519-591-8419

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#1 Problem First Time Home Buyers Have

The #1 Problem First Time Home Buyers Have

Proper education is the number one problem we consistently see with first time home buyers. Real estate is a hot topic in mainstream media. Every homeowner voices their personal opinions too, making it more important than ever to properly educate yourself.

Understanding topics like how the real estate industry works, the current state of the market, and the entire home buying process from A-Z will pay dividends for your first, and largest purchase to date. We rely on statistics, experience, as well as proven system and models to educate and prepare our clients for their first purchase.

 

How The Real Estate Industry Works

In Ontario you have regional real estate boards, brokerages,  and salespeople (aka realtors). Real estate boards connect brokerages and their representatives to data and systems to facilitate the purchase and selling of real estate in their region. Brokerages provide the necessary tools for realtors to run their business. Each brokerage offers different things to their agents like marketing, training, business philosophies etc.

Realtors are the individuals that work directly with clients like first time buyers. Each agent runs their business individually as they are considered independent contractors working under their brokerage’s banner. If they are working with someone to help them purchase a home they are commonly referred to as a “buyer’s agent”. It does not cost anything to work with a buyer’s agent as they are compensated from the seller of the property only when their client closes on their purchase.

The Home Buying Process

The home buying process is different for everyone but typically goes something like this:

  1. Know how the real estate industry works – Hire a realtor or do it yourself
  2. Financing – Consult a mortgage broker (any good realtor has a good mortgage broker)
  3. Understand your realistic options – Is their options in my budget that fit my criteria?
  4. Know your market – Understand if it is a buyers, sellers, or balanced market and what that means
  5. Utilize search tools to actively search for new properties
  6. View listings often and critically – Important to see options to compare
  7. Negotiate the right deal – Consider things like price, inclusions, conditions, closing dates
  8. Closing – Hire the right lawyer!
  9. Ownership – Utility billing information, property maintenance, learn how to improve the value of your home, stay updated on property values etc.

Current State of The Real Estate Market

First time home buyers need to understand that the market can’t be controlled by any one person. The best thing first time buyers is to learn exactly what types of properties fit their budget and criteria in the current market. From there, identify what the market is like for those specific types of properties. Buyers can then identify how competitive that market is and formulate the right strategy to get get the right deal. Buyers that are active and engaged in the home buying process are rewarded.

Find monthly real estate stats and commentary on our blog.

Realtor Notes

We recommend asking questions, a lot of them! First time home buyers need a proper education and the right tools now more than ever. Furthermore first time home buyers that take the time to create and follow a plan experience less stress. Remember, you’re buying your first home so if you’re well educated be confident and have fun! You’re only a first time home buyer once.

Drop us a comment if you have questions on this blog post or make a request. Get connected and ask us your questions here!

 

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MLS Listings Review October 2018

MLS Listings Review October 2018

In review of MLS listings numbers for October 2018 we will share what prices and inventory are doing the Waterloo, Kitchener, Cambridge and Guelph real estate markets. To compare similar numbers to earlier this year and the same time last year check the visuals below and our previous blog post.

Real Estate Inventory Numbers

Months of inventory is the number of active listings on the market in the previous month divided by the number of sales that month. This metric is key to determining the amount of available listings there are in our local real estate markets. October 2018 had just under 2.5 months of inventory in the major market centers Kitchener, Waterloo, Cambridge and Guelph. This is still about half of the amount of available listings we would need to even see a balanced market. Low inventory signals that buyers do not have a lot of options and the seller’s market will continue. Low inventory levels also supports price growth.

 

MLS Listings Price Numbers

Are prices going down? What prices does this type of place sell for? Are listings still selling in multiple offers? Comments and questions on prices are the most common things we hear from our network.

Prices are not going down and yes some listings are still selling in multiples. We are still in a competitive market for buyers, especially anything in the lower 400’s and under. As you can see in the graphic here the average price of residential listings in Kitchener, Waterloo, Cambridge and Guelph was $475,268. The average sale price has fluctuated around 1-2.5% of October’s average sale price for the better part of the last 5 months.

The average of the monthly prices for residential listings was $461,967 in 2017 and $479,908 so far in 2018. This is a 3.58% increase compared to 2017 prices.

What You Need to Know as a Buyer – Realtor Notes

For buyers we encourage looking at opportunities to purchase within the next three months for two main reasons. First, interest rates are likely to increase again in 2019. Get in before it becomes more expensive for you. Check out how interest rate increases can affect your mortgage HERE. Second, Although inventory is historically low we have noticed that competition has softened slightly. This is fairly common for this time of the year but recent increases to interest rates and media/market sentiment shifting towards price uncertainty is revealing more opportunities for savvy buyers than usual. Contact me directly or check out our Facebook page for buyer resources, search tools and updated listings.