Is the listing on your home about to expire?
Is the listing on your home about to expire? It’s not uncommon during this time of year to see real estate listings go from active, to withdrawn and expired. The winter months are notoriously difficult for selling a home; the distraction of the holidays is a major hurdle for both buyers and sellers. Ultimately fewer viewings result in fewer sales leaving you at risk for an expired listing. If you are reaching the end of your listing period it’s important to also remember that the end of the year and the beginning of a new year is a natural and logical time to reassess your position as a seller.
If your house has been on the market for some time and the end goal is still to sell the property, it’s important to take a close look at what can be learned from an unsuccessful sale.
As a seller, you have three viable options:
- You can extend the listing with your current agent.
- You can find a new agent.
- Or you can consider taking the house off the market completely.
Although it’s the last choice on the list above, lets discuss taking your house off of the market first. Its natural to feel that it may be better to take your house off the market and wait for better selling conditions, and while it may seem logical you may also find yourself in the same situation or worse. Waiting for a more “suitable” time to sell, perhaps waiting for Spring or hoping for a market increase is unfortunately no guarantee you’ll be in a better position. Yes, there are more buyers in the Spring, but there are also more sellers too so any benefit you would get from re-listing in the Spring is usually offset by the increase in competition.
If you are thinking about taking your house off the market in an attempt to offset the amount of time you’ve already been on the market, rest assured there has been a bit of a paradigm shift here. During the real estate bubble it was only taking four to six weeks for a house to sell, unfortunately that is no longer the case and houses are taking anywhere between four and six months to sell. So given the current market there is no longer always a negative stigma attached to a house that has been on the market for a lengthy period of time. Ultimately, if you’re thinking of taking your house off of the market remember this: the selling conditions aren’t likely to vastly deteriorate in the space of a few months, but neither are they likely to substantially improve so selling your house now is probably a good a time as any, and it’s certainly less hassle.
So with that in mind, the remaining options are to carry on with your current agent or find a new agent.
In terms of sticking with your current agent, most agents will almost always want to renew the contract since they don’t get paid unless the property is sold. It’s also worth bearing in mind that the agent has put in a considerable amount of time and money into promoting the property so they will most likely want to renew to avoid the exponential loss. But that said, you should consider the reasons why the house hasn’t sold before moving to another agent. There are several reasons why the house may not be appealing to buyers and in many cases the responsibility falls either on the agent or the seller, or both in equal measure. Read the rest of this entry »
5 Tips for Selling Your Home in Winter
Let’s face it…selling your house in winter is probably one of the last things you would choose to do voluntarily. The time between Thanksgiving and the New Year is a notoriously difficult time to sell as most people are focused on the holidays and spending time with family. Historically, many homeowners have taken their homes off of the market if they haven’t sold by mid-November, and while that notion is understandable, it’s not always necessary. There are some circumstances that require selling your home in winter, for instance a job transfer or a change in your personal life. Don’t fret if you find yourself selling in the dead of winter, we’ve got some easy tips to give you the best chance of a quick winter sale:
First things first…
No matter the season, to ensure your house sell quickly you must take care of all necessary repairs and maintenance. That includes giving the house a thorough cleaning and de-cluttering.
Pricing your home competitively and aggressively is essential to getting a quick sale in winter. Check the recent sale prices in your neighbourhood, or ask your Spectrum Agent what the average sale price is for a similar property. If your property is priced aggressively, it will sell no matter what time of the year it is.
Stage the home to sell.
Home staging is important whether it is winter or summer…but in the winter months it is important to think ‘warm and cozy’ when staging. If you are still living in the property, make sure it is a comfortable temperature when people come to view the home. Turn up the thermostat, and put a log on the fire (if you have one). Light a beautifully scented candle, or if you have the time, bake a batch of cookies. Nothing says ‘home’ like the smell of yummy baked goods wafting from the kitchen.
If you are no longer living in the property, it’s a good idea to leave a few pieces of furniture behind so viewers get a better sense of the property in situ. Again, try to warm up the house before any potential viewers come through – in this case an open house would be ideal as your agent will have time to get the heat cranked up before anyone walks through.
Lights on!
The winter months are notoriously dark and gloomy. Encourage showings during the daytime to give potential buyers the best perspective of your home in the natural light. Be sure to open the blinds, and turn the lights on (even in the daytime)…and make sure you’ve cleaned the windows too! If you must show the home in the evening, turn on all the lights, both inside and out. Keep the house well lit, even if you are no longer currently living there, a few lamps on a timer will do the trick nicely.
Curb Appeal Still Counts.
Curb appeal is just as important in winter as it is in summer, so make sure you clean up the yard and take care of any little touch-ups to the exterior of the property. Further to that you should keep the sidewalks, driveway, and other walkways clear of snow and ice. This may be difficult to maintain if you are no longer living in the property, but it is worth paying a snow removal company in that case. Not only for safety, but also aesthetics and competition. Although there are fewer houses on the market in the winter, there are also fewer buyers so you must stand out against the competition. A few seasonal lights on the house is nice too…but steer clear of any National Lampoon’s style decorating!
Celebrate the holidays.
With winter comes holidays…don’t miss out on the opportunity to show your house tastefully decorated for the season. A few seasonal touches will make your house stand out and make it feel more welcoming. Keep your decorations conservative and tasteful. A bit of greenery, a stylish wreath on the door, or some twinkling lights will give your house a seasonal lift and make potential buyers feel more at home.
Selling your home in winter doesn’t have to be a drag…follow our quick tips for season selling success!!
Rent or Buy???
In this tough economy, more and more people are pondering the big real estate question…should I rent or should I buy? Even those who have a substantial savings are struggling with this decision. Years ago, this wasn’t even a consideration and the advice would’ve been to buy, hands down. But with this shaky economy, things have certainly changed and the renting market has flourished as a result. So what to do when you’re faced with the rent or buy decision? Here’s a bit of advice to help you make an informed decision.
From the get-go, it’s important that we dispel the biggest myth when it comes to renting or buying. Renting does not equate to throwing your money away. You are paying for a service, in the same way that you would pay for your car to be serviced. You need a place to live, and renting provides that for you. As long as you are paying a competitive price for the service, you are paying market value for it. Further to that renting has many advantages over buying, one of the biggest being the flexibility to move whenever you need to.
Of course, there are major advantages to buying too, like seeing the value of your home appreciate over time. But with the recent economical downturn, there’s no guarantee this will happen. Many homeowners who purchased during the recent housing bubble now owe more on their mortgage than the home is actually worth, and if they ever want to sell they will either have to wait until the market turns around or settle for a loss on the property. That’s not to say that there aren’t good housing investments available now, and in some cases buying can be cheaper than renting.
Ultimately, when making the decision as to whether you should rent or buy, there are many factors to consider. Ensure you are making the right decision for your situation by asking yourself the following questions:
First, how stable is your employment?
Before you take on the financial commitment of a home, it’s important to take a look at the stability of your current employment. It’s certainly a difficult time for homeowners; with the economical downturn we’ve seen job losses across the board and as a result a huge increase in foreclosures. It would be a substantial worry to lose your job with the obligation to pay the outstanding months of your renter’s agreement, but it would be even more worrisome knowing that you have a mortgage and home equity at stake. Before purchasing a home, you should have a reasonable sense of job security, if for any reason you see trouble on the horizon regarding your employment, why not hold off until there are signs of economic recovery?
Can you financially support a home purchase?
Even if you have a decent amount of savings, the financial implications of purchasing a house will considerably change your financial situation. Before jumping in with both feet, look at the total cost including the down payment, closing costs, taxes, moving costs, as well as any auxiliary costs after moving in. After you’ve got a figure, take a look at what your savings balance will be after that money is spent. Are you left with enough cushion to feel comfortable until you can start ploughing money back into your savings? Don’t forget that as a homeowner you will also need cash in savings to fall back on for any unexpected home repairs. Once you know what the initial outlay is, you should also look at the monthly cost of the mortgage. Compare the cost of the monthly mortgage to that of the rent and see if you can afford to shell out for home ownership. Keep in mind that the monthly interest on your mortgage payment is tax deductible…and some of your closing costs may be deductible too!
What are your reasons for wanting to own?
Now that we’ve dispelled the myth that renting is throwing your money away…what are your concrete reasons for wanting to own a home? If you are looking for a lifestyle change, would that change be made possible by moving to another rental property? Would owning a home improve your quality of life? Is the financial responsibility something you want to take on? Make a list of the ways that your life would be improved as a homeowner and discuss the pros and cons of all of your reasons.
Buy now, or wait?
If you’ve answered all of the previous questions and still feel buying is the best option for you, the only question left to answer is whether to buy now or wait until the market bottoms out completely to get the best deal. Despite the recent indications that house prices have improved in recent months, the economy is still weak. The overhang of foreclosures will still present a considerable drag in the housing market for the foreseeable future, so it’s not likely that house prices will go up significantly anytime soon.
After a thorough discussion on the questions above, you should have a much clearer sense of whether renting or buying is right for you. Whatever decision you come to, you can rest easy knowing that renting is not throwing your money away but merely paying for a service that you need, right now. Those circumstances may change in the future and at that time you can revisit this post and reassess your answers!
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