There is no ‘right time’ to sell. People sell for many reasons such as relocating, upsizing, downsizing and so on. It will all depend on your individual circumstances. You should consider the seasonality of the market when deciding to sell.
The Regina market and surrounding area have busy and slow seasons. Winter sales tend to be slower while spring sales are more active. Based on my experience, sellers who are not as motivated pull off their house for the winter months and place it back on the market in the spring. This tends to lower inventory levels which is positive for sellers who are motivated to sell their homes. Additionally, we work with many RCMP relocations which take place anytime of the year along with other relocation companies. The spring market does see the most amount of activity for sales, although during this time your competing against a lot more sellers for the same potential buyers.
In a seller’s market, the inventory of houses on the market is low. The advantage to this is that you will be able to get a top price and a fast sale. In a buyer’s market, more sellers are competing for potential buyers. In this case, the price must be accurate as it’s one of the most important marketing factors of your house.
Depending on the real estate market, if you sell your home for a low price, you are also going to be buying at a low price. If you are selling at a high price, you are also going to be buying at a high price.
Many people feel that they want to wait for the perfect house to come up before they sell their home. The challenge with this is that if you make your offer conditional to your house selling, it may not be considered as strong of an offer to the sellers. Additionally, a seller may not want to accept an offer conditional to a house selling if the house has just come onto the market. Even if the seller does accept your conditional offer, they are still going to continue to market the property. This can result in the sellers receiving another offer and bumping you out of the buying position if your house hasn’t sold. This can be an emotional time as the “perfect home” got away.
We know that everyone’s circumstances are different and sometimes the perfect home comes up before your house is sold. There are a number of different tactics that we can deploy during the negotiation process to make the deal work. Talk to your mortgage lender about the different financing options such a bridge financing.
When people sell their home, they use the proceeds from the sale to discharge or pay off their mortgage. In an open mortgage, you have the ability to pay it off without any penalties. However, if you have a closed mortgage, be prepared to pay a penalty. The pay out penalty all depends on how much time is left on the term.
If your mortgage is portable you can take your mortgage money with you and buy a new home, without a penalty. Your moving your mortgage from your current home to a new one. Depending on the purchase price you may need to borrow extra money and the current interest rate. These are questions to ask your mortgage lender before you sell your home.
If the home is your primary residence, you will not have to pay capital gains on the increased value of your property. If you are selling a rental property, you will have to pay capital gains. You will also have to pay capital gains on the profits of a recreational property if you sell it. Talk to a tax professional for further details and advice.
If you are buying a new house or condo, some builders will include the GST into the purchase price. Be sure to ask your REALTOR if it’s included. Also, ask a professional tax advisor as regulations and policies are always changing.