When you already own a home, thinking about making a move into your next house can be overwhelming. Timing the sale of your house with the purchase of your next is probably top of mind, but there are a few critical things to check off your list long before the house shopping starts. Here's a step-by-step guide to making your next move:
STEP 1: ASSESS YOUR CURRENT HOME'S VALUE
As a seasoned real estate professional in the Waterloo Region, I cannot stress enough the importance of accurately assessing your home’s value before you set off on the journey of buying and selling. Here’s how I guide my clients through this critical first step:
In-Depth Market Analysis: Utilizing my extensive experience in the Waterloo Region, I perform a comprehensive market analysis for your home. This includes examining recent sales of comparable properties and understanding the unique aspects of your neighborhood that can influence your home’s value.
Property Evaluation: Every home has its own story and characteristics. With a quick in-person walkthrough of you home, I take the time to consider the specific features of your home that might add to its appeal, whether it's a recent renovation, a desirable location, or unique details.
Realistic Pricing Strategy: I provide you with a realistic and competitive pricing strategy that reflects the current market conditions. This is crucial for attracting the right buyers and achieving a successful sale. Finding the balancing point of a list price can make or break your next move. On one hand, listing your home too low without the proper strategy can leave money on the table. On the other hand, listing your property too high can stigmatize your home, leaving potential buyers with the assumption that it's not selling because something's wrong.
Partnering with You: My role goes beyond just giving you numbers. I partner with you to prepare your home for the market, with all-inclusive staging, photography, videography, virtual tours, plus we'll discuss repairs, and improvements that can net you a higher home’s value.
Remember, listing your home at the right price sets the stage for a successful transaction. As we work together, my aim is to ensure that you are fully informed and confident in your decisions as you move forward in selling your current home and finding your next dream house in the Waterloo Region and surrounding areas.
STEP 2: GET YOUR MORTGAGE IN ORDER
Review your current mortgage and understand the terms, especially regarding any penalties for early termination, as well as any features that allow you to port your mortgage to a new home. If you don't have an option to port your current mortgage, this is a good time to get pre-approved for a new mortgage so we have a clear idea of what you can afford. Consider talking to a financial advisor to understand the implications of your move on your overall financial picture.
STEP 3: TIMING YOUR MOVE
Decide if you want to sell your current home before buying a new one, buy first then sell, or conduct both transactions simultaneously. In a market that's obviously declining or increasing, there may be an obvious order to the process. In steady or unpredictable housing markets it's not so easy. Each option has its pros and cons:
Sell First: Reduces financial stress but might increasing "housing stress", requiring temporary housing.
Buy First: Reduces "housing stress" by ensures you have a home to move into, but could lead to owning two properties simultaneously and increasing financial stress.
Simultaneous Transactions: Buying and selling at the same time is made possible by leveraging well written clauses in your agreement. This option is generally best in a market that allows for conditions on the sale of the buyer's property, or a sale conditional on the purchase of your next property. In this scenario, bridge financing is always recommended to protect your move. More on this below.
STEP 4: PREPARE YOUR HOME FOR SALE
This step involves making any necessary repairs or improvements to increase your home’s appeal and value. Decluttering, deep cleaning, and staging are also key aspects of this process. Remember, the goal is to make your home as attractive as possible to potential buyers, and limit as many assumptions of issues. What might be a $100 fix for you as the Seller may be perceived as thousands in the "worst-case" to a nervous buyer.
Example: Discolouration in your basement ceiling from a tub overflow 10 years ago could be assumed as a potential leak, water damage, hidden mold etc.
As a part of our first meeting we'll make a list of your needs and wants, considering factors like location, size, amenities, and future plans. If you have school age children, there might be a specific board, or school zone that you're interested in staying in, or moving to. Once we have a clear idea of what we're looking for, I'll produce a list of properties that have recently sold within those guidelines to determine if our budget supports our needs. If not, we still have options; The budget will need to increase, or the criteria will need to change.
Often times, my client's haven't considered an area and are delightfully surprised when something out of area works out perfectly. In other cases, my clients have been happy to get a 5/10 house in a 10/10 neighbourhood, and leverage equity from their current home to improve the house itself.
STEP 6: NAVIGATING THE PROCESS
By understanding your goals and the local market, I expertly coordinate both the sale and purchase of your homes as it relates to negotiations, manage timelines and expectations, and deal with any unforeseen challenges.
STEP 7: ALIGNING THE TIMING
Oftentimes a great deal on a home purchase happens because of the need to sell by a certain date. When capitalizing on a home in this situation, there might a gap between selling your current home and moving into your new one, you'll need to arrange temporary housing. We can find temporary housing for you in the form of short-term rentals, and in some cases, my clients have even taking vacations to bridge the gap of a week or two!
STEP 8: PLAN YOUR MOVE
Once you have closing dates for both transactions, you can start planning your move. This includes hiring movers, packing, and setting up utilities and services at your new home.
Making a move from one home to another can be a complex process, but with careful planning, the right support, and a clear understanding of each step, it can also be an exciting journey. Remember, each move brings new opportunities and experiences. With this guide, you’re well on your way to smoothly transitioning into your next dream home.