You
own your own home and you're thinking about a change. The question that
springs to mind is "What do I do first -- buy the new house or sell the
existing home?"
There are no hard and fast rules since
the
marketplace, at any given time, can play an important factor in your
decision.
For example, if the market is
relatively
slow, with a lot of homes for sale and relatively few buyers, then it
will probably take longer to sell your home. As a home buyer, you
should have an easier time finding a new home. Conversely, when it's a
seller's market and there are a lot of buyers seeking homes, it will
take longer to find a new home and less time to sell your property.
There's no escaping the importance of
marketplace research, to obtain a maximum return on your investment,
it's always wise to ask a REALTOR to conduct a market evaluation of
your property.
The value that the REALTOR determines
will
be based on the recent selling prices of comparable homes in your area
and will also reflect the REALTOR's appraisal of your home and its
features.
Once you have determined the market
value of
your home and the amount of equity you have accumulated, you can better
identify how much to consider spending on a new home. Then list your
home with a REALTOR that has your confidence.
Remember, if buying activity in your
area is
slow, it will generally take longer to sell your home. One of the best
ways to ensure a quick sale is to price your home properly. If the
price of your home is high compared to similar homes in your area, that
will only lengthen the time it will take to sell the property. Sooner
or later you will need to drop your price to a more realistic level in
order to attract offers.
Even if you get an offer immediately
after
you list your home, remember that you can always try to negotiate a
longer closing date to give yourself enough time to find and arrange
the purchase of the new home.
Once your home is listed on the
Multiple
Listing Service® (MLS®)
system, and potential buyers have begun to view it, you can step up the
pace in finding a new home.
Make sure your REALTOR is familiar
with the
area or areas you like, and begin to view homes for sale in your price
range.
Ask a REALTOR to help you narrow down
your
search. With a list of your preferences as to location, number of
rooms, amenities, price range, etc. a REALTOR will be able to show you
homes suited to your lifestyle and needs. Many prospective buyers are
also turning to the Board's MLS®
listings appearing on the Internet (mls.ca) to assist them in their
preliminary searches.
Many people are concerned about being
able
to arrange both the sale and new purchase because they don't want to
end up with either two homes or no home at all.
Your REALTOR can explain several
techniques
that can protect you. For example, making a purchase conditional on the
sale of your existing home or arranging for interim financing are two
of the more common options. The most conservative approach is to have
an unconditional agreement to buy your existing home before you make a
deal to buy your new home.
Whichever option is best for you,
ensure you
discuss all possibilities and strategies with a REALTOR. And remember,
a REALTOR is a highly-trained professional and a member of The Canadian
Real Estate Association and the Vancouver Island Real Estate Board who
subscribes to a strict Code of Ethics and high Standards of Business
Practice.
This article was prepared by
the
Vancouver Island Real Estate Board - "An Association of REALTORS", for
the information and benefit of consumers.
November, 1993
rev Mar/95
rev Jan/98
Get
Your Home Ready for Sale
Your
Realtor: Best Source for Tips to Help Sell Your Home
Tips
to Help Homeowners Plan Their Next Move
Tips
on Sprucing
up Your Home Prior to Selling
Preparing
For Your Open House
How
an Open House Can Sell your Home
Selling
Your Home? Enlist the Services of a REALTOR
Sellers:
Take Advantage of the Buyers' Market
Creating
Curb Appeal Can Help Sell Your Home
How
To Books Offer Advice
Buying
or Selling a Home? Use a Realtor
