Should You Sell Your Home?
There are many things to consider when deciding to sell your home or not – from bank interest rates and your financial situation to possible depreciation in property value. In this article we offer some practical tips and advice.
What makes people sell their home?
There are a lot of reasons why people want to sell their home including:
Wanting to move to a new or better location.
Wanting a bigger or better home.
A change in personal relationships (ie. marriage breakdown).
Financial concerns or considerations.
A new job location.
What are key market considerations?
Property owners should consider the ‘supply versus demand equation’ and what is happening with recent property sales and bank interest rates.
The property supply verses demand question is key. Is there much competition from similar properties on the market at the moment? Are developers building new condos that are equivalent to your now used condo?
If there is less choice in the property market, competition for your home will be better and you will achieve a better sale value.
If you are thinking of selling you should check how much other homes are generally selling for right now. Also consider other factors such as bank interest rates and bank lending criteria which impact how much money potential buyers of your home have available.
What are the bank interest rates right now?
Are bank rates currently cheap or expensive? Are market conditions forcing banks to tighten their lending criteria? Or is it easier for people to borrow money from the banks? All of these factors are important because they will determine the number of people currently in the property market. Obviously the more people in the market, the more potential buyers you have to purchase your home. So it pays to know a little bit about the lending market – if people can borrow more money, they can spend more on houses.
What should your broker know?
A good broker will research all the facts about a property – eg. Property size, renovations, nearby facilities, public transport, etc.
If you have a timeline to work towards you should mention this to your broker because they can then determine the best sale strategy and work with that.
It is also a good idea to let the broker know any local information like when the street is busiest for traffic, etc. That way they can schedule a time for the viewing at the best possible time for prospective buyers.