In real estate, timing influences your home’s selling price. Working with a REALTOR® can help make timing work for you.

A buyer’s versus a seller’s market?

When lots of people are looking for homes but not many are for sale, it’s a ‘seller’s market’, because the seller has something everybody wants. When there are lots of homes for sale and not many people buying them, it’s called a ‘buyer’s market’ because buyers have more power of choice.

How quickly do you need to sell your home?

In a seller’s market, top price and a fast sale can go hand-in-hand. In a buyer’s market, more sellers are competing for your potential buyer. If you have to sell right now, consider lowering your asking price a bit to speed up the sale. Masters Real Estate can help you figure out the right price-to-speed ratio.

Seasonality. Do home sales get frostbite?

It’s true. Winter sales tend to be slower, and spring sales are more brisk. Regardless, there are always people looking to buy, and seasonality is only one of many factors to consider.

What if you’re also buying a home?

If you sell your existing home for a ‘low’ price, you’re probably also buying at a low price. If you are upgrading to a larger home, this actually works to your advantage. If you’re downsizing from a bigger home to a smaller home or a condo, you need to pay a bit more attention to the market.

To buy first or sell first? The eternal question

Many people are able to time their sale and purchase so they happen on the same “closing date”. As a buyer, you can make your offer “conditional” on the sale of your existing home to make sure you’re not left paying for two homes. As a seller, you can try to extend the “closing period” to give yourself more time to find your next home. Masters Real Estate  can provide advice and counsel during these kind of negotiations.

What if you find your new dream home before you’ve started to sell your old one?

Talk to your existing mortgage lender about “Bridge Financing”. This is when your lender (the bank) agrees to lend you the down payment for your new dream home, while you still cover the mortgage on your existing property.

Before the offers start rolling in, you should prepare for the massive amounts of money that will pass through your hands.

Still have a way to go paying off your mortgage? Here are some things to consider.

“Discharging”your mortgage

Many people use the proceeds from the sale of their home to “discharge” or pay off their mortgage. If you have what is known as an “open” mortgage, you can pay it all off without any penalties. If you have a “closed” mortgage, be prepared to pay a penalty. The penalty amount will depend on a number of factors, including how much time is left on the term of the mortgage.

If you’re buying a new home, is your mortgage “portable”?

A “portable” mortgage means you can take your mortgage money with you and buy a new home, without penalty. This can be a real bonus if the interest rate on your mortgage is lower than existing rates! If your new home is more expensive, and requires more mortgage, you’ll have to borrow the extra money at the current market rate.

Maybe the buyer is “assuming” your mortgage

Your mortgage may have a feature that allows the new buyer to take over your mortgage. If the interest rate is lower than existing rates, this can be a very enticing selling feature for your home.

Become a mortgage lender yourself?

If your buyer is having trouble arranging all the money to buy your property, you may consider lending directly to them. This is called a “Vendor Take Back” mortgage, and it’s often used by sellers to help move a property in a slower market. This is an incredibly complicated financial dealing, and you must talk with your financial advisor, lawyer and the professionals at Masters Real Estate before choosing this route.

If you find your new dream home before you’ve started to sell your old one

Talk to your existing mortgage lender. You may be able to arrange “Bridge Financing”. This is when your lender (the bank) is confident your existing home will sell quickly, and they agree to lend you the down payment for your new dream home.

Capital gains tax

If the home was your primary residence, you will not have to pay taxes on any capital gain (the increase in the value of your home). If you had tenants living in part of your home, such as the basement, you will pay capital gains tax on a portion of your profits. You may also owe capital gains tax if you’re selling a vacation or investment property. Talk with an accountant to find out what you’ll have to pay.

There are many reasons to choose Masters Real Estate

We are often asked how we manage to get our Buyer’s into the right home so quickly. We usually respond, “It’s not WHAT you know, it’s WHO you know!” We say this because, aside from spending our entire lives in the Kawartha Lakes, an amazing amount of our sales involve people we already know and from listings that are in our office. As one of the top companies in The City of Kawartha Lakes, we have an extensive number of homes available for purchase. Many times the right home for you is about to be listed and having the inside track will help you get
the home of your dreams.

We will … actively advertise your property in our local newspaper, Best Homes. All of our listings are posted on MLS     (www.realtor.ca and www.icx.ca for commercial), on our local Kawartha Lakes Real Estate Board, on the Durham Real Estate Board, as well as on our personal website for more exposure.
We will … have open houses for the public to come through and view your property at the most convenient time  for you as well as create brochures for potential buyers to peruse.
We will … promote your property to the very best of our ability in order to have the quickest sale possible.
We will … be available to you for any questions and concerns you may have about the sale of your home and provide you with answers to try to ease your mind.