Should You Sell Before You Buy?

If you are a current homeowner that wants to purchase a new home, you're most likely asking yourself a common question in your situation: Should you sell before you buy?

The answer to that question depends on several factors.

Your Personality

Just the thought of having two mortgage payments—even for a short period of time—can cause massive anxiety for some people. Even if your lender has assured you of a simultaneous close on the two homes, uncertainty may linger.

Then, there is the pressure to accept an unattractive offer just to ensure that the home sells in time. If you wait to buy, you'll have the luxury of being able to negotiate offers as they come in.
If you crave certainty, you should probably wait until the current home sells to take on the purchase process.

There are, however, those who deal with uncertainty better than others. If that describes you, then starting the purchase process before you sell your current home probably won't faze you.

Your Finances

Regardless of your personality, if you just don't have the money to support two mortgage payments at the same time, then you have no choice but to sell your home before you purchase another.

Further, if you need the proceeds from the sale of your current home to use to buy a new home, you'll need to wait until after you sell, or attempt a simultaneous close.

The Market

A seller's market is the ideal situation when you're selling your current home, but it can be difficult if you hope to purchase at the same time. In a seller's market—where there are few homes available and lots of buyers competing for them—sellers are in the driver's seat. With multiple offers coming in, homeowners are not likely to accept an offer that is contingent upon another home selling.

On the flip side, in a hot seller's market, homes that are in good condition and are located in decent areas will sell quickly.  If your house is among them, you take on little risk if you wish to purchase a new home before selling your current one.

Ascertain if the current market caters to sellers or buyers before making the decision of whether to buy before your house sells. Your real estate agent is your best source for this information.

Achieving the Simultaneous Close

Selling one home while purchasing another can be a bit of a balancing act. If you try to time the closings to occur during the same period, you run the risk of ending up with two house payments at once.

If you allow too much time between closings, on the other hand, you may find yourself renting a temporary home and, thus, moving twice.

The ideal situation is to plan for a simultaneous closing, where both transactions occur on the same day. However, this process comes with risks, too. If anything should go wrong on the first transaction you could end up not being able to close on the second.

For the simultaneous closing process to go smoothly, it's important to choose the right buyers for your current home. How much do you know about their finances? How firm is their offer? What do you know about their motivation to purchase? How badly do they want the home?

Since the process is a bit like a string of dominoes, and the buyer of your home is the lead domino, it's crucial to choose a buyer you know will consummate the deal.

The key to success is hiring an experienced, professional real estate agent. Your agent can guide you through the process and steer the transaction to keep it on course.

Call today for more advice!


Richard Thyssen, Broker of Record
Colleen Thyssen, Sales Representative
Direct 519-495-1541
Office 519-438-8000
Email richardthyssen@kw.com
www.thyssengroup.com

What Counts as a Comparable for your Home?

From replacing a rusted out bathroom sink to laying laminate flooring, Canadians are hooked on the DIY craze. Some things, however, are better left to professionals. Establishing your home's current market value before putting it on the selling block or pursuing a refinance is one of those things.
To determine its value, appraisers and real estate agents will compare your home (the "subject property") to those that have recently sold in the area (known as "comps"). They will adjust the comps' prices up or down, according to how similar each home is to yours.
Read on to learn how a home qualifies as a comp for yours.

Status

The market value of a home is, simply, what a knowledgeable and willing buyer will pay it. This figure is reflected in the sales price of recently sold homes.
Appraisers and real estate agents use the local Multiple Listing Service (MLS) database in their research, to look for homes that have sold within the past six months. Only real estate licensees that pay an MLS membership fee will have access to this database, so a DIY consumer will find it challenging to locate a full and accurate list of sold properties.

Location

Since location is one of the principal indicators of property value, appraisers and real estate agents seek sold homes that are in close proximity to the subject property.
Real estate agents will typically begin their research close to the subject property and then widen the area until they've found good comparable properties that have sold in the past six months.
Neighborhood characteristics that influence a home's value include:
Nearby parks
Proximity to shopping
Neighborhood condition
Traffic or other noise
The quality of the school district
Declining values or oversupply of homes in the area

Condition

Deferred maintenance will drag down the value of a home. Deferred maintenance includes all of the items you have been meaning to fix, but never got around to. Examples include:
Leaky faucets
Cracked windows
Loose or missing hand rails
Structural damage
Overgrown landscaping
Dirty or damaged carpets or other flooring

The Process

Since it is unlikely that your agent or an appraiser will find a home that's identical to yours, he or she will need to make adjustments to the sold prices of the comps to account for the differences.
If the comparable home is inferior to the subject property, value is added to bring it up to par. Conversely, if the comparable is superior to the subject, value is removed.

Here's an example of how this works:
The subject property has three bedrooms, two bathrooms and a pool. The comparable property, located three blocks from the subject, sold three weeks ago for $387,500.

The comparable property has three bedrooms and two and a half bathrooms, but it doesn't have a pool.

The appraiser or agent will deduct value from the comparable for the lack of a pool and add value for the extra half bathroom. The amount to deduct or add depends on the value the local market places on items such as a pool or a half bathroom.

The adjusted price range of the comp will reflect the current market value of the subject property.

Determining a home's market value isn't rocket science, but it does require current, accurate information and experience with the process. A professional real estate agent will not only determine the current market value, but will also give you tips on how to get top dollar for the home.

Call us today and find out what your home is worth!

Richard Thyssen, Broker of Record
Colleen Thyssen, Sales Representative
Direct 519-495-1541
Office 519-438-8000
Email richardthyssen@kw.com
www.thyssengroup.com

Deciding On A Move

Sometimes we don't have much choice about selling our home and buying
another. Circumstances, such as a job relocation, may have made that
choice for us.

However, most often we make a conscious decision to move for more personal reasons or sometimes people move simply because they think it's a good idea.  They feel that "now" is the right time to find their next dream home.

So how do you make that kind of decision?

There are, of course, many reasons to make a discretionary move. Usually, those reasons fall into one of two categories: need and want.

You may need to find a new home, for example, because you've outgrown
your current property. Perhaps you have a growing family and require more
space. Maybe you're doing more entertaining and need a larger backyard
with a more spacious deck. It could be that the commute to work is arduous
and you need to move to a place that's closer.

Those "needs" may motivate you to move, but sometimes a "want" plays an
important role, too.

For example, you may want to live in a quieter neighbourhood or in a newly
built home that requires less maintenance. Maybe you simply want a
change.

If you're thinking of making a move, it is a good idea to start by writing down a list of
your needs and wants. Seeing them on paper will help make the decision
easier.

Call us today and let's get started!

Richard Thyssen, Broker of Record
Colleen Thyssen, Sales Representative
Direct 519-495-1541
Office 519-438-8000
Email richardthyssen@kw.com
www.thyssengroup.com

840 MAITLAND Street LONDON, ON N5Y2W8

Property Site: http://tour.circlepix.com/home/ALU2YY

Charm, Character & Style best describe this Old North 3 bedroom + den, 2.5 bath home. Double car detached garage with workshop is a rare find in this desirable area. Gracious principle rooms with exceptional flow for entertaining. Many features include; gorgeous Brazilian cherry wood flooring, gourmet kitchen with granite counters, large master bedroom with dressing room style walk-in closet, heated floors in 2nd floor bathroom, spacious family room with gas fireplace and 10 foot patio door leading to fenced courtyard style backyard, stacked flagstone flower beds/walkway. Centrally located minutes away from Richmond Row, Victoria Park, UWO, hospitals and near schools.

Bedrooms: 4

Bathrooms: 2.00

Price: $389,900

For more information about this property, please contact Richard Thyssen, Broker of Record at (519) 438-8000 or richardthyssen@kw.com. You can also text 2542925 to 67299.

See more listings at: http://www.thyssengroup.com

MLS ID: 555592

Informed Buyer/Seller