Thinking of selling

Timing is everything when selling property

The real estate market is always fluctuating with ups and downs so it can be a seller`s market or a buyer`s market at times.  Together we will review the market in your area to see what`s currently listed that we may be competing with but to also know what has sold recently.  I will offer my best advice based on what we see but you may also consider having a certified appraisal done on your property.  This is highly recommended if you are dividing assets with a partner.  Other things that we`ll discuss and take into consideration are:

  • the urgency of selling your home?
  • re-locating or buying again
  • if buying again which do you do first?

Buying again in the same market

Some people will choose the same closing date for both the sale of their existing home and the closing date on their new home.  This way money is transferred from the buyer of your home the same morning that your money transfers to the sellers of the property you are buying.  In cases where the closing date for your sale is later than the closing date on your purchase you made need to talk to your lender to discuss bridge financing”  Cautious sellers may choose to sell first and live in temporary residence while searching for the perfect property.  This is the best plan when it`s a seller`s market and you have time to wait it out until the market reverses and becomes a buyer`s market again or you want the funds from your existing home to start construction on a new home.

 More questions to ask your present mortgage lender

  • will there be a pay out penalty if you sell
  • can your mortgage be ported to your new home
  • is your mortgage assumable?
  • would it be advantageous to become a lender yourself?  By offer the buyer of your home a vendor take back mortgage.  This works to sell your home faster in a slower market but it is very complicated.

 Consult your financial advisor or tax accountant

If it`s not your primary property that you`re selling what are the tax implications?  Perhaps it was your principal residence but you used part of the home for renters or home based business.  There may be capital gains tax on a portion of the proceeds on your sale.

Please be aware that there is GST charged on professional services so that would include the commissions payable on the sale of the property and the services provided by your lawyer.