By Penny Elizabeth Dutkowski, Broker
Well here we are at the start of another year and the opener to what is typically the GTA housing market's busiest time of year. My sales record will prove that an important factor leading to a seller achieving exceptional results is in knowing when to buy and when to sell which translates into an advantage of several thousands to their benefit. So if you are going to be buying and or selling property this year, consider the following tips before taking the plunge.
Selling: While it may be tempting to jump right in to beat out any competition,
1) do have a REALTOR or several provide you with historic monthly market analyses of sales, and month over month changes for sale prices in your area for at least the last three years, as well, have them include a list of all available comparable properties in your area along with their days on market ensuring that the days on market accurately reflect any expired or terminated listings for these properties. These will be your initial gauge for selecting the best time to sell.
2) request that they give you an update each time a comparable listing appears or a like sale in your area occurs:
2) take into consideration your: reason for selling, required date of closing and personal financial situation(pfs) particularly with regard to whether you will be moving up or down in price when weighed against the urgency for buying:
3) if January or early February is your targeted listing date, allow other sellers to take the lead first and be the new market year's test subjects as the first few weeks in January tend to be the barometer for buyer interest and an indicator for the direction of sales prices:
4) having said the above, one cannot know exactly the right time to sell for the highest return and then buy for the least amount because it is a balancing act. It is nevertheless one that can be managed well enough to reap rewards with which you'll be very pleased. Therefore it is important for you to understand that as market prices climb it may not be in your best interests to unduly delay the sale of your home if you plan on moving up in price while conversely, it can certainly be beneficial (pfs dependent) to wait if moving down in price:
5) ensure the REALTOR(s) with whom you are in contact fully understands this concept so that you are prepared to list accordingly and be wary of the advice from anyone including a friend or relative who tells you that anytime is the right time to buy or sell as this is easily disproved:
6) the balancing act includes not listing while the competition is heavy yet, some competition can be particularly advantageous when your sale is properly managed:
7) do start preparing your home for sale once you know you will be selling. (the next post focuses on the steps a seller should take before listing their home for sale):
8) do apply all of the above in conjunction with your must sell by date:
Additional seller information is available on my web site alternatively, please feel free to contact me
Buying: this applies to buying without selling or delaying buying after selling:
1) do have a REALTOR® or several provide you with historic monthly market analyses of sales, and month over month changes for sale prices in your area of choice for at least the last three years, as well, have them include a list of all available comparable properties along with their days on market ensuring that the days on market accurately reflect any expired or terminated listings for these properties:
2) do have the REALTORS® or mortgage brokers provide you with the outlook for expected future interest rates and when the new realty tax rates come into effect for your area of choice:
3) eliminate the months where values appreciate, focus on months where listing volume is moderate to highest and balance these with #2 so as to avoid as much as possible any increase in interest rates. Consult the municipality's web site for the planned realty tax rate increase:
4) generally, property values increase by greater margins from January to May therefore it is best to assume until such time that the market proves otherwise that the best time to buy during the first half is in January and at the latest, early February:
5) do try to avoid thinking the market will decline without such evidence:
6) if you find a property that you like, do avoid procrastination by remembering there are also other buyers looking for a deal before prices rise:
7) do ensure that you keep up with sale prices and changes in inventory on a weekly basis.
Additional buyer information is available on my real estate web site alternatively please feel free to contact me
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