Setting a realistic price for your home that reflects current market values will help sell your home quickly and for top dollar. When you price your home properly, you increase the chances that the offer you receive will nearly match your asking price, and that there will be competing offers—which may net you even more in the long run. Your property has the best chance of selling within its first seven weeks on the market. And, studies indicate that the longer a property stays on the market, the less it will ultimately sell for. A property priced 10 % more than its market value is significantly less likely to sell within this window than a property priced close to its actual market value. About three-quarters of homes on the market today are 5-10 % overpriced. Sellers will usually over-price their homes by this margin if, either, they firmly believe the home is worth more than what the market indicates, or if they want to leave room for negotiation. Either way, if you choose to over-price your home by this amount, you run the risk of increasing the amount of time your home spends on the market, and decreasing the amount of money you’ll ultimately receive.

At the other end of the selling spectrum are houses that are priced below a fair market value. Under-pricing often occurs when the owner is interested in a quick sell. You can bargain on these homes attracting multiple offers and ultimately selling quickly at—or above—the asking price.

1.Seller’s Market:

A Seller’s market is considered a “hot” market. This type of market is createdwhen demand is greater than supply—that is, when the number of Buyers exceedsthe number of homes on the market. As a result, these homes usually sell veryquickly, and there are often multiple offers. Many homes will sell above theasking price.

2.Buyer’s Market:

A Buyer’s market is a slower market. This type of market occurs when supply is greater than demand, the number of homes exceeding the number of Buyers. Properties are more likely to stay on the market for a longer period of time. Fewer offers will come in, and with less frequency. Prices may even decline during this period. Buyers will have more selection and flexibility in terms of negotiating toward a lower price. Even if your initial offered price is too low, Sellers will be more likely to come back with a counter-offer.

3.Balanced Market:

In a balanced market, supply equals demand, the number of homes on the marketroughly equal to the number of Buyers. When a market is balanced there aren’tany concrete rules guiding whether a Buyer should make an offer at the higherend of his/her range, or the lower end. Prices will be stable, and homes will sellwithin a reasonable period of time. Buyers will have a decent number of homesto choose from, so Sellers may encounter some competition for offers on theirhome, or none at all.

Remember, a REALTOR® is trained to provide clients with this information about the market, helping you make the most informed decision possible. The right REALTOR® will guide you through the ups and downs of the market and keep you up-to-date with the types of changes you might expect.

Evaluate your house in the other main areas that affect market value:

Location:

The proximity of your home to amenities, such as schools, parks, publictransportation, and stores will affect its status on the market. Also, the quality ofneighbourhood planning, and future plans for development and zoning willinfluence a home’s current market value, as well as the ways in which this valuemight change.

Property:

The age, size, layout, style, and quality of construction of your house will allaffect the property’s market value, as well as the size, shape, seclusion andlandscaping of the yard.

Condition of the Home:

This includes the general condition of your home’s main systems, such as thefurnace, central air, electrical system, etc., as well as the appearance and conditionof the fixtures, the floor plan of the house, and its first appearances.

Comparable Properties:

Ask your REALTOR® to prepare you a general market analysis of your neighbourhood," you can determine a range of value for your property. A market analysis will provide you with a market overview and give you a glimpse at what other similar properties have been selling for in the area. 

Market Conditions/ Economy:

The market value of your home is additionally affected by the number of homes currently on the market, the number of people looking to buy property, current mortgage rates, and the condition of the national and local economy.

When preparing your property to show, work your way from the outside in. It is essential that your home possess a certain “drive-up appeal.” Remember, a potential buyer’s first impression of your house is formed while s/he is still sitting in the REALTORS® car. So, first you need to view your house from this perspective. Go stand on the opposite curb and observe your property. Compare it to surrounding properties. Concentrate on the following three areas:

Landscaping:

How does your landscaping measure up compared to the rest of the neighbourhood? If you guess it would rate below-average, make a few adjustments. You might want to consider buying some bushes and planting them around the property. Do not buy trees, however—mature trees are expensive, so you will not see a return on your investment. And immature trees don’t tend to significantly improve the immediate appearance of your home.

If the problem with your yard isn’t a case of too little greenery, but rather too much, get out the pruning shears. The purpose of landscaping is to complement the home, not hide it. Overgrown shrubs should be sheared to a height near the bottom of the windows. Remove any ivy clinging to the side of the house. Tree limbs should be high enough that you’re able to walk beneath. Trim any branches that bar the way.

Your lawn should be freshly cut and watered, and an even colour. If there are brown spots, make sure you begin to remedy this well in advance of putting the house on the market. You may want to re-sod areas, and you need to make sure these spots are given enough time to grow, so they will match the existing lawn. Also, if you decide to use fertilizer, you’ll want to allow enough time for it to take effect. Rake up any leaves or grass cuttings. Planting a few flowers is an easy way to add colour and vibrancy to your yard, enhancing the first impression of your home. Invest in a full flat of mature, colourful flowers, such as petunias or periwinkles, which last the length of the growing season. Do not buy bulbs or seeds—they won’t necessarily grow enough by the time you begin showing to achieve the desired effect. If you don’t have an area in which to plant flowers, consider purchasing a few flower pots for your porch and planting flowers or blooming plants. If you have a pool, keep it sparkling and leaf-free.

House Exterior:

When you view your house from across the street, does it appear weathered or faded? If so, it’s probably time to treat it to a fresh coat of paint. This is usually a sound investment; new paint can do wonders to increase a home’s perceived value. Stay away from unusual or loud colours. The new colour should fit in with surrounding houses, and complement the style and structure of your house. Examine the roof closely. Old or leaking roofs should be replaced. If there are leaks, you’ll have to disclose this detail to the homebuyer anyway, and they will want it replaced. If there isn’t any apparent damage, however, wait for word from the home inspector before making repairs.

The Front Door and Porch:

The front door and surrounding area should look particularly fresh and welcoming, as this will be the buyer’s first up-close impression as they enter the house. If you paint nothing else, at least give the door a new coat. Replace the doorbell if it is broken and polish the door fixture until it gleams. Wash the mail box. Keep the porch swept and buy a new plush door mat. All of these little things will contribute to the overall effect of a well cared-for and welcoming home. Ensure the lock works smoothly and the key fits properly. When a homebuyer visits your house, the REALTOR® will open the front door with a key. You don’t want the buyers’ first experience to be of waiting on the doorstep while

Your home is likely your largest asset, so selling it may be the biggest financial move you’ve ever made, one that requires significant thought and strategy. However, once you’ve entered the market, the process may move very quickly: your property has the best chance to sell within its first seven weeks on the market. Studies indicate that the longer a property stays on the market, the less it will ultimately sell for. So, you need to ensure you’re ahead of the game. Get your property into top selling shape before it hits the market in order to increase its chances of selling within the desired window of time and drawing top dollar.

Use the following tips to seize control of the home-selling process before you begin:

1. Establish the Reasons you Want to Sell your Home:

These reasons will direct the path you take in the home-selling process. If, forexample, you have already purchased a new home and your goal is to make aquick sale on your current home, this reason will chart your approach. If, on theother hand, you aim to net the highest price possible for your home, you wouldneed to prepare yourself for a potentially slower process. Be clear about thesereasons, as they will directly influence the amount of time and effort you put intopreparing your home for sale, and the amount you set for your asking price.

2. Pricing:

It is essential you list your property at a competitive market value right from thestart. The competitive nature of the market means that over-pricing by a fewthousand dollars could make the difference between your home selling quickly ornot selling at all. Overpricing your home could potentially yield the followingresults: minimized offers, fewer showings, fewer agent responses, limitedfinancing, limited buyers qualified for your type of home, or a smaller net price. You can avoid these outcomes by setting the price of your home at its marketvalue when you first list.

If you are unsatisfied with the current market value of your home and unwilling tolist it as such, consider putting off the sale of your home at this time.

3. Do your Homework:

Perhaps the most “hands-on” approach to educating yourself about the nature ofthe current market—what works and what doesn’t—is to explore other homes onthe market. Take advantage of Open Houses in your area, particularly in thosehomes similar to your own. Take some notes. Observe floor plans, lot size,appearance, location, and other features of the property. Then compare askingprices. Go through this process before setting your own asking price. Remember:

you want to get a selling price as close to your asking price as possible. And if you want to attract this price quickly, you won’t accomplish this by setting your price higher than your neighbour’s.

4. Decide Whether to Invest in an Appraisal:

Getting an appraisal can be a positive or negative move, depending on the outcome. It’s up to you to determine how it might fit into your personal plan. Having an appraisal done can be a good marketing strategy, indicating to potential buyers that your home can be financed, which will increase the chances that your home will sell quickly and for more money. On the other hand, however, there’s no guarantee you’ll like the final picture offered by the appraisal. Also, it’s one more cost you’ll have to add to your budget, and an appraisal only lasts for a limited period of time.

5. Choosing a REALTOR®:

Your choice of REALTOR® will greatly influence your home-selling experience. For better or for worse, this person will be with you every step of the way during one of the largest financial ventures of your life—and will make a difference in the speed with which your house is sold, and how much it sells for. Don’t take this relationship lightly. You should consider a few REALTORS® before you narrow down your choice. Of course, one of the initial factors to consider will be whether the REALTORS® personality and enthusiasm is a fit for you and your family. Also, each candidate should be able to provide you with information on the following areas: the length of time s/he has been involved in residential real estate in your area, the marketing strategy s/he would use to sell your home, details on other properties in your area their company has sold (how much the property sold for and how long it spent on the market), and his/her philosophy or method of negotiation. You might want to request a reference list of former clients as well. Choose a few names on the list and call them.

6. Cleanliness:

Make no mistake, prospective Buyers will be turned off by even a minimal lack of cleanliness, or an odour. Sellers may lose thousands of dollars if they fail to thoroughly clean the house before they begin to show it. Begin by clearing the house of excess junk, clutter, and furniture. Create more space. Make every room sparkle. Eliminate odours. You may be the last to notice a peculiar odour in your house, but it may be the first thing a potential Buyer notices. So, air out your house prior to showing. Keep pets in the yard as much as possible, and send any household smokers outside.

7. Access to your Home:

Agents will be more reluctant to show your home if it isn’t readily accessible. They don’t want to waste their time running around, picking up and dropping off keys. Rather, a key should be immediately available for agents at all times.

Also, go through the following last-minute list to prepare for showing your home: keep all lights on, doors unlocked, and drapes and shutters open. If you can, leave the house while it is being shown. Head to the local coffee shop, or take the kids to the park. Prospective Buyers will feel more intrusive if the owner of the house is present while they are viewing. If you can’t leave the house, be as unassuming as possible.

8. Updated Interior:

A fresh coat of paint may be one of your best investments when preparing yourhome for the market. New paint can take years off the appearance of your home,dramatically increasing its perceived value. Likewise, if your carpeting appearsworn, old, or is an outdated pattern, consider replacing it. The carpet or paint inone room could be the difference between a successful sale and your home beingoverlooked.

9. Drive-Up Appeal:

If the buyer doesn’t like the outside of your house, s/he may choose to skip itentirely. It is essential that your home possess a certain “drive-up appeal.” Remember, a potential buyer’s first impression of your house is formed while s/he is still sitting in the REALTORS® car. Ensure the trees are trimmed, the walkway swept, the lawn cut. Paint the door, and put out a new, plush door mat. All of these little things will contribute to the overall effect of a well cared-for and welcoming home.

Staging your home is a powerful way to make it more appealing to potential buyers, helping you sell faster and often for a higher price. This guide provides a step-by-step approach to effectively stage your home, ensuring it makes a great impression.

1. Understanding Home Staging

What is Home Staging?

• Definition: Home staging involves preparing your home for sale by enhancing its appearance to appeal to the widest range of buyers.

• Purpose: The goal is to make your home look more inviting and showcase its potential, helping buyers envision themselves living there.

Benefits of Home Staging

• Faster Sales: Staged homes often sell faster than non-staged homes.

• Higher Offers: Well-staged homes can sell for a higher price than similar unstaged homes.

• Better Online Presence: Staged homes typically look better in photos, attracting more interest from online listings.

Preparing to Stage Your Home

Declutter and Depersonalize

• Remove Personal Items: Take down family photos, personal collections, and unique décor to create a neutral space.

• Declutter: Clear out unnecessary items from all rooms, closets, and storage areas. Less clutter makes spaces appear larger and more inviting.

Deep Clean

• Clean Thoroughly: Ensure your home is spotless. Clean windows, carpets, floors, and every nook and cranny.

• Freshen Up: Use air fresheners or scented candles to keep the home smelling clean and inviting.

Repair and Update

• Fix Minor Issues: Address any small repairs like leaky faucets, cracked tiles, or scuffed walls.

• Consider Upgrades: Simple upgrades like new light fixtures, fresh paint, or updated hardware can make a significant difference.

Staging Key Areas of Your Home

Living Room

• Furniture Arrangement: Arrange furniture to create a comfortable conversation area. Ensure traffic flow is unobstructed.

• Neutral Décor: Use neutral colors and simple décor to appeal to a broad audience.

• Lighting: Ensure the room is well-lit with a combination of natural light, overhead lighting, and lamps.

Kitchen

• Clear Counters: Keep countertops clear of appliances and clutter. Add a few decorative items like a bowl of fruit or a vase of flowers.

• Highlight Features: Showcase key features like updated appliances or ample storage.

• Organize: Clean and organize cabinets and drawers. Buyers will look inside.

Bedrooms

• Neutral Bedding: Use neutral and appealing bedding to create a restful atmosphere.

• Minimize Furniture: Keep only essential furniture to make rooms appear more spacious.

• Closet Space: Organize closets to show off ample storage space.

Bathrooms

• Spotless Cleanliness: Bathrooms should be immaculate. Remove personal items like toothbrushes and toiletries.

• Add Fresh Towels: Use new or clean, neatly folded towels to add a fresh look.

• Simple Décor: Keep décor minimal but add a touch of luxury with items like scented candles or a stylish soap dispenser.

Dining Area

• Table Setting: Set the dining table with a simple, elegant arrangement to suggest how the space can be used.

• Lighting: Ensure good lighting, and use a centerpiece to draw attention to the table.

Home Office

• Functional Setup: Arrange the space to showcase its potential as a functional home office.

• Declutter: Keep the desk clear and organize any office supplies neatly.

Outdoor Spaces

• Curb Appeal: Improve the exterior with landscaping, clean driveways, and a welcoming front entrance.

• Backyard: Stage outdoor areas with clean, comfortable furniture to suggest a relaxing space.

Creating the Right Atmosphere

Lighting

• Natural Light: Open curtains and blinds to maximize natural light.

• Artificial Lighting: Use a combination of ambient, task, and accent lighting to create a warm and inviting atmosphere.

Color and Décor

• Neutral Colors: Use neutral paint colors to appeal to a broad audience.

• Simple Décor: Keep décor simple and tasteful. Use art and accessories sparingly to enhance but not overwhelm the space.

Scents

• Fresh Scents: Use subtle scents like fresh linen or lavender. Avoid strong or overpowering smells.

• Clean Air: Ensure the home is well-ventilated and free of any unpleasant odors.

After putting in a huge amount of time and effort to get your home looking good and ready to sell, your hard work is finally going to pay off: your home is on the market—you’re ready to begin showing. Your house should always be at-the-ready for a tour, as agents may bring clients by with very little notice. If they catch you unprepared and you aren’t able to show the house on the spot, you could be losing out on a sale. Concentrate on the following areas to ensure your home is ready to show:

1. People

Homebuyers may feel like intruders if you are present while they view your house, and this will affect their overall impression. Consider taking the opportunity to visit the local coffee shop, go shopping, or take the kids to the park. If you can’t leave while the house is being shown, try to be as unassuming as possible. Do not move from room to room. Don’t offer information, but make yourself available to answer any questions the agent or buyers might have.

2. Lighting

When you know an agent is bringing someone by, make sure all of the drapes and window shades are open to let in as much daylight as possible, or—if the showing is taking place at night—to create a look of comfort and warmth when viewed from the outside. Open all the doors between rooms to create an open, inviting feel. Turn on all lamps and overhead lights, even during the day. Keeping lights on during the day softens the harsh shadows sunlight can create in a room, and illuminates dim corners. During nighttime showings, make sure all outdoor lights are on, as well as pool lights.

3. Cleanliness

Scan the floor for debris—newspapers and magazines tend to accumulate without our noticing. Make sure all the counters are clutter-free. Empty the kitchen garbage before every showing, particularly if the garbage can doesn’t have a lid. Keep everything freshly dusted and vacuumed. Beds should be made and bathrooms cleaned (toilet lid down). Every room should sparkle.

4. Scents and Sounds

Avoid using scented sprays before showing your home. Some people simply won’t enjoy the smell, and others may be allergic. If you want to make a room smell pleasant, consider a potpourri pot or a naturally-sourced aroma.

If you or your family is home while the agent is giving a tour, try to stay as quiet as possible. Turn off the television and the blaring radio. Put on some soothing background music at a low volume.

5. Pets

If you have pets, make sure your listing agent includes this in your listing on the Multiple Listing Service. This way, no one will be surprised by a furry welcome if the agent shows the house while you’re not there. If you know someone is coming to tour the house, ideally you should take the pets with you, or arrange to have a friend or family member take them. If this isn’t possible, keep dogs in the backyard, preferably in a penned area. Try to keep indoor cats in one room while people are touring the house, and put a sign on the door.

Once you’ve minimized the clutter in your home, clearing out excess items and furniture, you’ll be ready to concentrate on repairs, cleaning, and decoration. Your goal is to get each room looking its sharpest and most fresh—the better your house looks, the greater your chances that it will sell quickly and for top dollar. Concentrate on the following areas to get your home into selling shape.

Walls and Ceiling:

Examine all the ceilings and walls for water stains or dirt. We don’t often look closely at the walls that surround us, so be careful—there could be residual stains from leaks that have long been fixed, or an accumulation of dirt in an area you hadn’t noticed.

Painting the walls may be the best investment you can make when preparing your home to sell. You can do it yourself, and relatively inexpensively. Remember, the colours you choose should appeal to the widest range of buyers, not just to your own personal taste. A shade of off-white is the best bet for most rooms, as it makes the space appear larger and bright.

Carpet and Flooring:

Does your carpet appear old, or worn in areas? Is it an outdated colour or pattern? If the answer to either of these questions is yes, you should consider replacing it. You can find replacement carpeting that is relatively inexpensive. And always opt for neutral colours.

Any visibly broken floor tiles should be replaced. But make sure you don’t spend too much on these replacements. The goal isn’t to re-vamp the entire home, but, rather, to avoid causing any negative impressions due to noticeable damage or wear around the house.

Doors and Windows:

Check the entire house for any cracked or chipped window panes. If they are damaged in any way, replace them. Test all windows, as well, to ensure they open and close easily. Try spraying WD40 on any with which you’re having trouble. This should loosen them up.

The same can be done with sticking or creaking doors. A shot of WD40 on the hinges should make the creak disappear. Check to make sure each door knob turns smoothly and polish it to gleaming.

Odour Check:

Begin by airing out the house. Chances are, you’d be the last person to notice any strange or unpleasant smell that may be immediately apparent to visitors.

If you smoke indoors, you’ll want to minimize the smell before you show your home. Take your cigarettes outside for a period of time before you begin showing. Ozone sprays also help eliminate those lingering odours without leaving a masking, perfumed smell.

Be careful if you have a pet. You may have become used to the particular smell of your cat or dog. Make sure litter boxes are kept clean. Keep your dog outdoors as much as possible. You may want to intermittently sprinkle your carpets with carpet freshener as well.

Plumbing and Fixtures:

All sink fixtures should look shiny and fresh. Buy new ones if scrubbing fails to get them into shape. Replacing them can be done fairly easily and inexpensively. Check to make sure all hot and cold faucets are easy to turn and that none of the faucets leaks. If you do find a leaking faucet, change the washer. Again, this is an easy and inexpensive procedure.

Finally, check the water pressure of each faucet, and look for any stains on the porcelain of the sinks or tubs.

Once you’ve covered all these bases, your house will be in prime shape for its time on the market. Congratulations—you’re ready to begin showing!

You’ve been saving for awhile, weighing your options, looking around casually. Now you’ve finally decided to do it—you’re ready to buy a house. The process of buying a new home can be incredibly exciting, yet stressful, all at once. Where do you start?

It is essential you do your homework before you begin. Learn from the experiences of others, do some research. Of course, with so many details involved, slip-ups are inevitable. But be careful: learning from your mistakes may prove costly. Use the following list of pitfalls as a guide to help you avoid the most common mistakes.

1.Searching for houses without getting pre-approved by a lender:

Do not mistake pre-approval by a lender with pre-qualification. Pre-qualification, the first step toward being pre-approved, will point you in the right direction, giving you an idea of the price range of houses you can comfortably afford. Pre-approval, however, means you become a cash buyer, making negotiations with the seller much easier.

2.Allowing “first impressions” to overly influence your decision:

The first impression of a home has been cited as the single most influential factor guiding many purchasers’ choice to buy. Make a conscious decision beforehand to examine a home as objectively as you can. Don’t let the current owners’ style or lifestyle sway your judgment. Beneath the bad décor or messy rooms, these homes may actually suit your needs and offer you a structurally sound base with which to work. Likewise, don’t jump at a home simply because the walls are painted your favourite colour! Make sure you thoroughly the investigate the structure beneath the paint before you come to any serious decisions.

3.Failing to have the home inspected before you buy:

Buying a home is a major financial decision that is often made after having spent very little time on the property itself. A home inspection performed by a competent company will help you enter the negotiation process with eyes wide open, offering you added reassurance that the choice you’re making is a sound one, or alerting you to underlying problems that could cost you significant money in both the short and long-run. Your REALTOR® can suggest reputable home inspection companies for you to consider and will ensure the appropriate clause is entered into your contract.

4.Not knowing and understanding your rights and obligations as listed in the Offer to Purchase:

Make it a priority to know your rights and obligations inside and out. A lack of understanding about your obligations may, at the very least, cause friction between yourself and the people with whom you are about to enter the contract. Wrong assumptions, poorly written/ incomprehensible/ missing clauses, or a lack of awareness of how the clauses apply to the purchase, could also contribute to increased costs. These problems may even lead to a void contract. So, take the time to go through the contract with a fine-tooth comb, making use of the resources and knowledge offered by your REALTOR® and lawyer. With their assistance, ensure you thoroughly understand every component of the contract, and are able to fulfill your contractual obligations.

5.Making an offer based on the asking price, not the market value:

Ask your REALTOR® for a current Comparative Market Analysis. This will provide you with the information necessary to gauge the market value of a home, and will help you avoid over-paying. What have other similar homes sold for in the area and how long were they on the market? What is the difference between their asking and selling prices? Is the home you’re looking at under-priced, over-priced, or fair value? The seller receives a Comparative Market Analysis before deciding upon an asking price, so make sure you have all the same information at your fingertips.

6.Failing to familiarize yourself with the neighbourhood before buying:

Check out the neighbourhood you’re considering, and ask around. What amenities does the area have to offer? Are there schools, churches, parks, or grocery stores within reach? Consider visiting schools in the area if you have children. How will you be affected by a new commute to work? Are there infrastructure projects in development? All of these factors will influence the way you experience your new home, so ensure you’re well-acquainted with the surrounding area before purchasing.

7.Not looking for home insurance until you are about to move:

If you wait until the last minute, you’ll be rushed to find an insurance policy that’s the ideal fit for you. Make sure you give yourself enough time to shop around in order to get the best deal.

8.Not recognizing different styles and strategies of negotiation:

Many buyers think that the way to negotiate their way to a fair price is by offering low. However, in reality this strategy may actually result in the seller becoming more inflexible, polarizing negotiations. Employ the knowledge and skills of an experienced REALTOR®. S/he will know what strategies of negotiation will prove most effective for your particular situation.

If you are considering looking for a new house, and are a current home-owner, then chances are you’re wondering what your strategy should be: do you wait to find the perfect new home before you put your current home on the market, or do you sell first and then look around? You have a few options. Use the following as a guide to explore what might be the best move for you.

Sell First:

There are several benefits to selling your current house before searching for your next home. First of all, once you have sold your house, you will know precisely how much money you have to work with. With a concrete price range, you’ll be able to narrow the pool of houses before you begin looking, and negotiate accordingly. This will allow you to immediately make firm offers on houses that you are serious about purchasing. You can be first in line with an unconditional offer you know you can afford, and this will grant even further negotiating leverage as Sellers tend to take unconditional offers more seriously. When they counter or turn down an offer that’s conditional on the sale of a home, they usually think the Buyer will come back with a better and more firm offer once they have sold their current home. However, if you make an unconditional offer, the Seller will usually give you more consideration, as they realize you’re probably looking at other properties and will move on if your offer is rejected. Likewise, if you have already sold you house, you probably do have a wider opportunity to look around, negotiate, and find the best deal and fit for you and your family. 

The flip side of this scenario, however, is that if you don’t find the right property before the closing date of the house you’ve already sold, you may have to look for temporary housing until you do find what you’re looking for.

So, before you opt to sell first, you should determine whether you have alternate, temporary options, in case you have to move from your house before you’ve found a new one. How would you and your family deal with living in a transition home for an undetermined period of time?

Buy First:

Buying a new house without having sold your current home may occur if you are interested in a specific property and will only sell your current home if this property comes on the market. It may be a matter of timing—grabbing hold of the home before it’s too late. The same might be said of a property you haven’t had you eye on previously, but that catches your attention due to its uniqueness or unbelievable price. If buying first means you don’t miss out on the real estate opportunity of a lifetime, it may be the best move.

However, be careful. If you buy another property and aren’t able to sell your current home quickly enough, you could end up having to finance both homes and shoulder the extra debt until you sell. You can get a financial appraisal or market evaluation of a home prior to selling, but this doesn’t guarantee the price you’ll ultimately receive for the home after the negotiation process has run its course. Since your selling price will be an unknown, jumping into a purchase could be a gamble, particularly if your budget is tight.

Make sure you’re familiar with all aspects of the financial reality this scenario would create before you purchase another home. You may be faced with owning two homes at once. What type of financial stress would this bring to your life and how would you deal with it? Consider the fact that if your current house doesn’t sell quickly enough, you may be forced to sell it off at a reduced price in order align the closing dates of your two properties. What effect would this have on your financial situation?

Conditional Offer:

An additional option involves making your offer to purchase conditional upon the sale of your current property within a specified period. Conditional offers usually include a clause that allows for the Sellers to keep their property on the market and remain open to other offers while you try to sell your home. If the Sellers receive another attractive offer before you’ve sold your home, they may accept and ask you to either remove your condition and firm up your offer, or to back down from the offer. A conditional offer forms a kind of middle ground, an area of compromise, for those who are afraid to sell or buy first—but doesn’t hold the advantages of the other two options.

One of the drawbacks of the conditional offer is that Sellers tend to take them less seriously. They definitely give stronger consideration to firm offers. This leaves you with less negotiating power. In fact, some Sellers will simply turn down or counter a conditional offer. Other Sellers will believe the Buyer will come back with a more serious offer when their home has sold. So, you may end up having to increase your offer in order to have your conditional offer accepted and keep your foot in the door of your desired house.

Even if your conditional offer is accepted, there is no guarantee another Buyer won’t step in and overthrow your offer before you have sold your current home, which would put you back at the starting line. Also, consider the fact that you cannot withdraw your conditional offer until the end of the period specified in the contract—which means that if a better deal comes along, you will have to wait to jump at it.

Budgeting for a new home can be tricky. Not only are there mortgage installments and the down payment to consider, there are a host of other—sometimes unexpected—expenses to add to the equation. The last thing you want is to be caught financially unprepared, blindsided by taxes and other hidden costs on closing day.

These expenses vary: some of them are one-time costs, while others will take the form of monthly or yearly installments. Some may not even apply to your particular case. But it’s best to educate yourself about all the possibilities, so you will be prepared for any situation, armed with the knowledge to budget accordingly for your move. Use the following list to determine which costs will apply to your situation prior to structuring your budget:

1. Purchase offer deposit.

2. Inspection by certified building inspector.

3. Appraisal fee: Your lending institution may request an appraisal of the property. The cost of this appraisal is your responsibility.

4. Survey fee: If the home you’re purchasing is a resale (as opposed to a newly built home), your lending institution may request an updated property survey. The cost for this survey will be your responsibility and will range from $700 to $1000.

5. Mortgage application at your lending institution.

6. 5% GST: this fee applies to newly built homes only, or existing homes that have recently undergone extensive renovations.

7. Legal fees: A lawyer should be involved in every real estate transaction to review all paperwork. Experience and rates offered by lawyers range quite a bit, so shop around before you hire.

8. Homeowner’s insurance: Your home will serve as security against your loan for your financial institution. You will be required to buy insurance in an amount equal to or greater than the mortgage loan.

9. Land transfer (purchase) tax: This tax applies in any situation in which a property changes owners and can vary greatly.

10. Moving expenses.

11. Service charges: Any utilities you arrange for at your new home, such as cable or telephone, may come with an installation fee.

12. Interest adjustments.

13. Renovation of new home: In order to “make it their own,” many new homeowners like to paint or invest in other renovations prior to or upon moving in to their new home. If this is your plan, budget accordingly.

14. Maintenance fees: If you are moving to a new condominium, you will likely be charged a monthly condo fee which covers the costs of common area maintenance.

There is no set equation to determine how you’ll reach an offer price. Rather, the process involves a range of research and comparison that will vary with each situation. You’ll need to look at sales of comparable properties, and factor in additional data such as the condition of the property, the current market, and seller circumstances. With this information in hand, you will be able to determine a fair price range and, from there, establish the price you’re willing to offer. Concentrate on the following areas to help you determine an offer price:

Comparable Sales

• Compare prices of homes that are similar to the property you’re considering in the following areas: number of bedrooms and bathrooms, square footage, lot size, type of construction, and garage space.

• The most comprehensive and in-depth information can be accessed through the Multiple Listing Service (MLS). Your REALTOR®, who will be working closely with you to set your offer price, can help you navigate this service.

Property Condition

• Observe how the property compares to the rest of the neighbourhood. Is it average, above average, or below average?

• Look at structural condition: walls, ceilings, windows, floors, doors.

• Pay close attention to: bathrooms, bedrooms, condition of plumbing and electricity.

• Also check the fixtures: light switches, doorknobs, drawer handles, etc.

• What is the condition of the front and back yards?

Home Improvements

• Cosmetic changes can be largely ignored, but any major improvements should be taken into account.

• Take special note of: room additions (especially bedrooms and bathrooms).

• Items such as swimming pools may be taken into account, but usually won’t affect your offer. Your REALTOR® can offer you guidance in these matters.

• Also check the fixtures: light switches, doorknobs, drawer handles, etc.

• What is the condition of the front and back yards?

Market Conditions

Seller’s Market

• A seller’s market is considered a “hot” market. It happens when demand exceeds supply—more buyers than available homes.

• Homes typically sell quickly, with multiple offers.

• Many homes sell above the asking price.

Buyer’s Market

• Occurs when supply is greater than demand—more homes than buyers.

• Homes may stay on the market longer, with fewer and less frequent offers.

• Prices may decline, and buyers have more flexibility to negotiate lower prices.

• Sellers are more likely to respond with counter-offers if initial offers are low.

Balanced Market

• Supply and demand are roughly equal.

• Prices remain stable, and homes sell within a reasonable timeframe.

• Buyers have several options, and sellers may or may not face competition for offers.

Comparable sales information helps you establish a price range for the home you’re interested in. Adding in the additional factors mentioned above will guide your decision of whether you consider a “fair” price to be near the upper, lower, or middle limit of that range.

Keep in mind, this price should be one you’d be satisfied with once all negotiations are complete. The price you decide to begin with depends on your particular style of negotiation. Most buyers start negotiations with an offer lower than the “fair” price they’ve determined.