It’s every homeowner’s nightmare. Just imagine: You go through the entire process of updating, cleaning, and selling your home. Perhaps you have even secured a new place already, and your moving date is quickly approaching. By all accounts, everything seems to have gone well, but then you start scrolling through the news.
To your horror and dismay, you discover that the real estate market has changed since you accepted your buyer’s offer, and prices have increased drastically. If only you had waited! You could have earned so much more from your sale if you had just held off even another month or two.
This scenario is one of the reasons why many people hesitate to sell their homes. If time works in your favour, you couldn’t be happier. But what if you get it wrong? In this post, we’ll show you how to make the most of any market conditions so you never have to worry about kicking yourself once all is said and done.
Timing Isn’t Everything
As in any market, prices can fluctuate rapidly over the short term. However, over the long term, real estate values have always risen steadily. Trying to capitalize on these short-term changes can be a lot like trying to win the lottery. Even with massive amounts of research, getting your timing perfect all comes down to luck. Let’s think of it another way.
Every market fluctuation has a bottom before prices begin to rise again and a peak before they begin to fall. How great would it be if you could sell when values are sky-high and then buy when they bottom out? If luck is on your side, it can happen. But every transaction almost always falls somewhere in the middle, and these short-term gains or losses will seem small compared to the equity you will build over the years.
When you keep the big picture in mind, it doesn’t hurt so much if you miss the extreme peaks of the market.
Is there a change coming up in your future? Here are some of our related posts to help you enjoy a seamless transition:
- The Art Of Selling Your Midtown Home With Kids Or Pets
- Moving On Up In Midtown: A Guide To Upgrading Your Home
- How To Make The Most Of Your Home Sale In Toronto’s Annex Neighbourhood
Look to the Long Term
Let’s say you bought a home in Toronto in 2018. At that point, the average price had fallen from the previous year to $736,783. You can imagine the panic as homeowners everywhere speculated that the market was about to crash! But just take a look at what happened next. The pandemic hit, and housing prices soared at a pace that shocked everyone. After peaking in 2022 at $1,334,544, values “fell” to $1,038,668 by January 2023.
Now imagine telling those 2017 homeowners that the value of their house would climb to over $1 million in a few short years. They would have laughed at you, but here we are!
Anyone trying to profit over the short term during these times would have been pressing their luck. However, those who are in it for the long haul almost always come out ahead.
Every Market Offers an Advantage
What if the worst happens and prices skyrocket after your house sells? Everyone who sold in 2021 and early 2022 found themselves in this exact situation as prices kept rising with no end in sight. The best way to protect yourself is to understand the market and be prepared to act quickly when an opportunity arises. Here are the main scenarios you might find yourself in:
- You have just sold your home in a fast-paced seller’s market. The good news is that you have earned far more from your home than you originally paid. The bad news is that you are now a buyer in that same seller’s market. Typically, your best strategy is to buy your new house quickly before prices rise even more.
- You are selling in a buyer’s market. The bad news is that it may take a long time to sell your house, and you might earn a little less than you’d hoped. The good news is that your new home will also cost less.
When you understand the market and formulate a strategy for the long term, you almost can’t go wrong. Yes, housing prices might fall after you’ve already bought. Or they might rise after you’ve sold your existing home. As frustrating as this may be, long-term equity growth is what matters.
Planning and Preparation Beat Timing
Instead of focusing on the market and other outside factors beyond your control, let’s talk about some of the ways you can give yourself a competitive edge. The first step is to prepare your home in a way that generates as much attention and interest as possible.
- Begin with a deep clean and thorough declutter. This is the perfect time to get rid of those unused items that have been lying around. Sorting everything that isn’t nailed down into a keep, donate, or discard box will help you get organized and stay on track.
- Make a list of minor repairs and updates that will have a big impact. You likely don’t have to invest in significant renovations, but a fresh coat of paint on the walls can do wonders.
- Be sure to clean up the yard and make the outside of your home as welcoming and inviting as possible. The effect begins the moment your potential buyer pulls up into the driveway!
When planning for the long term, real estate is almost always a solid investment. The posts below will give you something to think about:
- Real Estate Investing: The Secret To Generational Wealth
- Do Laneway Houses Add Value To Your Midtown Home?
Work With a Local Real Estate Expert
A local real estate team who is familiar with the nuances of the Toronto market is your ultimate resource for a successful sale in any situation. Our services begin with helping you prepare and plan, but we don’t stop there. We are here to guide and assist you every step of the way, from analyzing the current data and statistics and pricing your home effectively to promoting your listing to a vast network of potential buyers, all while negotiating the highest possible price and best terms the market will allow.
Whether you are ready to list your house now or are just gathering information, we are here to help you at every turn. Reach out to email@example.com, firstname.lastname@example.org or call (416) 485-7575 to begin the conversation today.