Home Sellers Guide in Ottawa, Ontario
A Handy Guide for Home Sellers
Use a realtor when selling your home to get the most out of this experience. This isn’t the kind of thing that you want to leave up to chance, as this will likely be one of the largest transactions of your life. It can also become your largest regret if you’re not diligent. Consider these questions before you decide to put your home on the market:
Is now a good time to sell?
How can I advertise my home to prospective buyers?
How can I get top dollar for my property?
These are just a few of the many questions that your realtor can help answer. Their ambition is to make sure that you are completely satisfied throughout the entire process of selling your property.
Decide When to Sell
In real estate, timing can drastically impact how much you might receive for your home. With the help of a realtor, you can figure out if now is a good time to sell your home, or if you should hold onto it for a little while longer.
The Difference Between A Buyer’s Market And A Seller’s Market
The housing market is a seller’s market when there are a lot of people looking for homes but there aren’t enough homes on sale for everyone. This occurrence is referred to as a seller’s market because the seller has something that many people want, and they can be selective about who they end up selling their home to.
A buyer’s market is defined as the reverse: when there are many homes for sale but not so many people buying them. In this kind of market, the buyer is armed with the power of choice.
How Quickly Do You Need To Sell Your Home?
In a seller’s market, top prices and a fast sale can go hand-in-hand. This is because there are many people competing for a limited selection of homes. In a buyer’s market, more sellers are competing for potential buyers and may reduce their prices to compete with other sellers in the area.
If selling right now is of a huge priority to you, it might be wise to lower your asking price in hopes that the lower number will be more tantalizing to prospective buyers. A realtor can work with you to help you find out the right ratio between price and speed.
How The Seasons Affect Home Sales
Homes tend to sell more slowly in the winter months, whereas spring sales tend to speed up. Now, this isn’t to say that you shouldn’t list your home for sale during the winter. People move homes at all times of the year, and seasonality is just one of many considerations that should factor into this decision.
What To Do If You’re Also Buying A Home
If you’re selling your current home for a low price, chances are that you are also buying a new home at a low price as well. If you are upgrading to a larger home, this can work to your advantage. If you are downsizing from a bigger home to a smaller one or a condominium, it would be wise to be more mindful of the market.
To Buy First, Or To Sell First?
It’s usually possible to schedule the sale and purchase so that they happen on the same closing date. As a buyer, you can make your offer “conditional” on the sale of the home that you have on the market. This prevents you from ever having to pay for two homes at the same time. As a seller, you can try to extend the closing period to provide yourself with more time to find your next home. An experienced realtor can provide you with all of the advice and counsel that you could need during the negotiation process.
What Happens If You Find Your New Home
before your old one is on the market?
You have the option of talking to your mortgage lender about bridge financing. This is when your lender agrees to lend you the down payment for the house that you intend to buy. During this time, you will still pay the mortgage on your existing property.
Get Your Finances in Order
Before you start the process of selling your home, you should prepare yourself for the large sums of money that will exchange hands during this transaction.
If you still are a ways off from paying off your mortgage, there are a few things that you should consider:
“Discharging” Your Mortgage
To discharge a mortgage, a person uses the proceeds of their home’s sale to pay off their existing mortgage. If you have what is called an “open” mortgage on your home, you can pay it off without any stiff penalties. If you are currently on a closed mortgage, you will have to pay a penalty. The amount of this penalty will depend on factors such as how much time is left remaining on the term of the mortgage.
Portable Mortgages For Buying A New Home
When you take your mortgage money and buy a new home without a penalty, this is called a “portable” mortgage. This can be incredibly useful for individuals whose interest rate on their mortgage is lower than existing market rates. If the home you’re buying is more expensive and requires more money, you will likely have to borrow the money at the current market rate.
Could The Buyer “Take Over” Your Mortgage?
Some mortgages have a feature that lets the new buyer take over the mortgage of your home. If the interest rate is lower than current market rates, this can really draw in potential buyers.
Vendor Take-Back Mortgages
When you lend directly to the buyer, this is referred to as a “vendor take back” mortgage. This is used often to assist sellers in moving their property during slower market times. This exchange is incredibly complicated and will require conversations with your realtor, financial advisor, and your real estate lawyer.
Capital Gains Tax
If the home that you’re selling was your primary residence, you won’t be made to pay any capital gain taxes. This kind of taxation relates to your home’s increase in value. If you have had tenants living in the part of your home, such as in the case of renting out your basement, you will have to pay a capital gains tax on a portion of the profits that you have made. In the event of selling a vacation or investment property, you may also have to pay a capital gains tax.
Your lawyer and realtor provide services that are subject to GST/HST.
Find a Great Realtor to Work with You
You have many options when it comes to choosing which realtor will help you through the process of selling your home. It’s important to find the right realtor for you and your needs, as their services are essential and can make everything go much more smoothly. Don’t blindly select a realtor just because they suggest the highest asking price. Talk to numerous realtors and you will find one that suits your situation.
If you’re stuck on finding a realtor, consider sticking with the realtor who helped you to buy your current house. If your realtor was great at their job the first time around, it makes sense that their greatness would continue during the process of selling.
Look into Local Realtors
In your community or its surrounding areas, you have likely seen the names and telephone numbers of realtors written on “for sale” signs. Jot that information down. It will help you in your research later.
Word of mouth is one of the most reliable ways to get information about goods and services, so ask around your social circle! Do you know anybody who’s bought or sold a home and sings the praises of their realtor? They may be worth checking out!
It’s always a good idea to refer to the experts who are most familiar with your area. You should consider visiting an Ottawa real estate office to meet realtors who have a wealth of knowledge about the location.
Interview Promising Prospects
Ask questions. Ask all of the questions that you have. Your partnership with your realtor is important, and you need to be able to rest assured that they are working with your best interests in mind. Screen a few, or more than a few, realtor options before you make a decision. Make sure that whoever you hire is someone you’re comfortable with and who show a real interest in helping you out.