For many homeowners, selling the house to upgrade to something larger, more modern, or in a more desirable area makes perfect sense in a hot market where prices are rising. When things take a turn, seemingly for the worse, people have a tendency to think twice about that big move.
The reality is that a declining market sometimes offers as many benefits as one that is on the rise. In this post, we’ll explore some of the reasons selling and upgrading now might actually be a smart investment.
Do you want to simplify the home selling process? Check out one of our comprehensive guides for sellers.
Crazy Bidding Wars Aren’t All They’re Cracked Up to Be When Selling
Selling your home in today’s market looks very different from the start of the decade, which made real estate history due to unprecedented demand, fierce bidding wars, and prices that kept going up, up, and up with no end in sight.
It sounds like a dream come true if you’re listing your property, but selling is only half of the equation. You still have to find a new home to buy, which is no easy feat when every listing goes into a bidding war.
Some homeowners found themselves priced out of the market, with much less borrowing power even though they achieved record-breaking results from their own home sale a few months prior.
A more balanced market means you’re less likely to see so much demand when listing your house today. However, buying will also be easier, which makes for a less stressful experience overall.
Should you choose Guelph when moving to a larger home? There are many reasons to consider it, as you’ll see from the posts below:
- Guelph Vs Toronto: Is It Time to Move?
- How to Find an Up & Coming Neighbourhood in Guelph
- Why We Love Downtown Guelph
For Upsizers, A Down Market Presents Rare Opportunities
During slow markets with few sales and little demand, upsizers are actually in a very good position. There will always be buyers, regardless of what is happening, but the majority are looking for mid-level listings.
While condos and larger executive properties get next to no attention, modest-sized and entry-level family homes typically remain in high demand and sometimes still go into multiple offers.
As someone selling a mid-range home, you benefit from the best of both worlds. Your listing attracts serious buyers who are still in the market, while you choose a larger property with less competition.
The Importance of Knowing the Market
It can feel like the market is never cooperating when you’re ready for a move. The reason is that you are likely to face some challenges, no matter what, at least on one side of the transaction.
Selling your home during a buyer’s market likely means making some compromises, starting with a realistic price point. You can enhance perceived value through staging and strategic renovations for maximum perceived value. Nevertheless, your final price will still be limited by what the market will bear.
Understanding your strengths and areas of concession will help you maximize your home’s value, especially when competing sellers are operating under outdated information. During times like this, you’ll want to work with a knowledgeable real estate agent who knows how to transact in any market, not just when homes are in record demand.
An experienced expert can perform a Comparative Market Analysis to see how your listing compares with others in your area. By the time you’re ready to list, you’ll be armed with accurate, up-to-date facts that give you a distinct, competitive advantage.
Looking for ideas on how to get the best price for your home in this market? The posts below can help:
- Is Staging Still Valuable When Selling a House Today?
- Should Your Home Be Show-Ready Before You Get an Evaluation?
- Why Landscaping Matters When Selling Your Home
What Your Upsizing Experience Might Look Like in the Market Today
No one likes the idea that their home will sell for less now than it would if they had listed a few years ago. Many of us have been taught that real estate values should always rise over time, not decrease. However, the reality is that housing prices have always fluctuated. As crazy as it may sound, it can be a benefit in disguise.
To put it in perspective, imagine that you had listed at a time when your house would have sold for one million dollars. Meanwhile, you had your eye on a $1.5 million home, a difference of $500,000.
The unpredictable market being what it is, now let’s say prices across the board have decreased by 20%. That means you get $200,000 less for your home. At first, it feels devastating. But take a look at the calculations to buy your new property, which has also come down in price.
The $1.5-million home now costs $1.2 million. Before, the spread between the two listings was $500,000; today, it is only $400,000. Yes, your home earns less, but you still come out $100,000 ahead, and you’re not just saving money on the purchase price.
Many of your closing costs, especially your land transfer taxes, are based on a percentage of the final price. Your down payment is also lower, and your monthly mortgage could be more affordable than you realized.
When you consider all angles, upsizing in a down market can be a winning strategy. Your dream home in an ideal location you love could be more attainable than ever!
Do you want the best possible results and minimal stress when buying or selling your home? Our top Guelph real estate agents are here to guide you every step of the way. Reach out to info@gowylde.ca or call 519-826-7109 for more information.
