Friday, April 26, 2019

You Were Asking: Condition on Sale of Buyer's Property

Condition on Sale of Buyer's Property

This spring we saw a re-appearance of a condition on the sale of a buyer’s property in accepted offers. This is a direct result of lenders requiring a successful sale in order to secure financing on a purchase at most pricing levels. The risks and concerns are very different for a seller vs a buyer. Here’s what you need to know about the condition on sale.

As a seller, it’s important to understand the facts behind the property in question. As such, the condition, price and timing of market entry will all factor into the risk associated with the ‘saleability’ of that back-up home. In a slowing market it’s a much higher risk to accept a condition on sale of a $2 million-dollar home not yet on the market than it is for a $500k townhome in a hot market. It also begs the question of financial stability of your buyer... why do they require the condition in the first place? On the positive side, the inclusion of an escape clause will allow you to continue to offer your home for sale in the event another buyer is willing to make you an offer.

As a buyer, the motivation can vary as to why they feel it’s needed. For some, it’s a financial requirement and others it’s a safety net if they don’t reach their set goals or expectations on the sale of their home. It’s important to understand the ins and outs of what the condition will mean. You are asking the seller to take a chance on your home selling within a set period of time. As such, you should be in a position either already on the market or rather imminently. In that case, your Realtor needs to have an understanding of your home and value in order to properly convey to the other parties involved. We have also seen instances where offers have been ‘bumped’ by a firm offer and buyers not being able to meet their condition on sale requirements so, this cannot always be used as a buffer to get your home on the market.

Overall, proceed with caution when negotiating a condition on sale and protect your largest asset. We have seen the condition used unsuccessfully, but also to reach a very happy end for both the buyers and sellers as of late.

Monday, April 22, 2019

Sellers Were Asking: Preparing for Market

Preparing for Market

It’s easy for most to get caught up in the excitement of making the move that many sellers often ignore or just don’t see the relevancy of preparing their own home. The purchase and sale go hand in hand and can often be a delicate dance of timing. Outside influences such as friends, family members, mortgage brokers or whomever it may be often advise to purchase before you sell your home. Truth be told there is no simple answer to the equation. 

Market conditions aside, a move-up buyer will have a completely different strategy than a downsizer looking to takeaway a set amount. Sticking to the experts in the field, as hard as it may be, will have your best advice on how to approach the next stage of home ownership.

Having a Realtor assess your home can actually cover off more than just the value of your home. It can be a visit about renovations both required or unnecessary, a discussion of financial goals or even of market timing. It also provides your Realtor with the information about how you live and how best to guide you in your next purchase. Not to mention, allows them to gauge how ready, willing and able you are to purchase and sell. 

It’s a common misconception that you should only call a Realtor into your home once you’ve bought, but our advice is actually the opposite... if you’re considering making a move, the sooner the better to seek professional advice!

Thursday, April 18, 2019

You Were Asking: Spring Market

Spring Market

There still seems to be a question in the minds of both buyers and sellers when it comes to when the busiest time of the real estate year is. Always, it is identified by the Spring market. But when actually is the Spring market? 

We Realtors should really be calling it something else as it definitely does not start in April. The best market of the year always begins just after the holiday season. Some years, that means right in January with a rolling start and a mid-way point, typically somewhere in March. April is usually the over half way point with June 1st signaling the start of a market shift slow down. 

Markets in real estate are very weather dependent. And this year, with heavy snowfalls in February, the market at that time did slow up which produced a faster paced March into April. Think of it this way; when parents start to consider summer vacation and daycare as we head to June 30th, their moving plans have either already been made or shelved as they have bigger fish to fry, so to speak. Their closing date will be geared toward June so their kids can spend the summer in their new neighbourhood. So, looking backward a mere 60 days, their purchase will likely occur somewhere in March so they can get their own home on the market. 

Most buyers take at least 30-90 days to, dial that back from April and we have a January start. Then, you start to consider what home you are trying to market and to which buyer? All things considered; the ‘Spring’ market starts in January.

Tuesday, April 16, 2019

Market Update: Market Conditions and Summer Forecast

Market Conditions & Summer Forecast

This year we saw an early head start on our Spring market in the early days of January. The market continued to stay strong until the weather brought a slow down to the market as indicated by a decrease in February’s market statistics. 

With the return of the warmer weather, as well as return of the area’s snow birds, we saw the family buyer and downsizer collide in the market to create almost a second market resurgence. Buyers are still getting the opportunity to revisit homes a few times over so, sellers must hit the market prepared to be viewed with a more critical eye. 

With values once again increasing in most areas overall we look ahead to the Summer and what it holds in store for our buyers and sellers. All appears to be status quo, with a continued balanced market ahead.