This section gives you some insights into the many factors that affect a selling decision, including economics, interest rates and supply and demand. You'll also find information on determining the best price, selling a home yourself and avoiding common seller errors.
When is the best time to sell your home?
- Many items like economics, market conditions, interest rates, and your financial situation influence the sale of a home.
- Your home is not yours until financial obligations such as commissions, disbursements, fees and legal costs are paid.
How to sell your home fast for the best price
- Selling your home affects your financial future. This report provides valuable information that can help you efficiently sell your home and maximize your investment.
So you want to sell your home yourself?
- While it looks easy, selling a home is a complicated and time-consuming process. The truth is - when you partner with a professional realtor, your home will be priced appropriately and placed before the most buyers – so your home sells fast, and for top dollar!
Selling yourself? Why you need a techno-savvy realtor more than ever
- The Internet has changed most everything – including real estate. But it's not always for the better. You could lose money, trying to sell your home yourself on the Internet.
The right price affects your bottom line
- Your home could be priced too low or too high. Either way, you lose. Here are some suggestions on setting the right price considering the market, the condition of your home, and time on the market.
- In real estate, market value is defined as "the price at which a particular house, in its current condition, will sell within 30 to 90 days." This report explains how realtors consider these three items when marketing a home.
How to make the most of your move up
- Financing, coordinating closings, and shopping for a new home are just some of the considerations when you're moving up to another home. Here are some tips to make your move-up hassle-free.
How to keep your head during a divorce
- This report explains the financial, emotional and legal aspects of your four options concerning "the house."
9 biggest relocation mistakes and how to avoid them
- Insufficient information, closings that do not coordinate, and inadequate preparation are some of the common mistakes that people make when relocating. Here are some suggestions on how to avoid them.
When is the best time to sell your home?
Downsizing, upsizing, relocation to a new job or lifestyle changes are just a few of the many reasons why people sell their homes. Regardless of the reason, each seller wants the same thing: selling a home without hassles, quickly for the best possible price.
Before selling your home, spend some time thinking about your reasons for moving. Is your home too large? Is it too small? Will you be looking for new accommodation in a new city because of a change in employment? Perhaps you just need a change in lifestyle. When you clearly have answers to these questions, your search for a new home, plus the sale of your existing home should be more manageable.
When is the best time to sell your home?
In the spring. Not during the Christmas season. Not during the school year.
Some people look for bargains during the winter and then try to sell again in
the spring. Summer is a good time. Each person has a theory or reason why selling
a home at a certain time is better than another. Some theories are based on
the economy, while others suggest that some buying months are better than others.
- Do your children need to be closer to school?
- Do you need to be closer to work?
- Do you need to be closer to hospital or medical facilities?
- Is your home too large?
- Is your home too small?
Most professional realtors agree that your situation should determine the time when you sell. It also depends upon your objectives. Perhaps you're an investor looking to capitalize on market conditions, or require the funds of the sale for financial obligations. In most cases, however, the best time to sell is likely when your existing home no longer meets your needs.
Economic factors are an important factor
Another key consideration is the economy. How do interest rates compare to your
current mortgage? Are they higher or lower? If rates are higher, your monthly
payment amounts may be higher than your existing ones upon the purchase of another
home. If rates are lower, you may be able to trade up to a more expensive home,
and not a significant increase in your monthly financial obligations.
You'll also want to research the market. Is it a buyers' or seller's market?
In a buyers' market, there are more homes for sale then there are buyers. This
usually means a high inventory of homes, and few buyers compared to available
homes. Homes typically stay on the market longer. Prices are stable or may drop.
With this type of market, buyers often spend more time looking for a home. Upon
negotiation, they have more leverage. You could benefit if it's a buyers' market,
especially if you have accumulated equity in your current home.
In a seller's market, there are more buyers for the available homes on the market. This translates to fewer homes for many buyers, resulting in quicker sales and price increases. Buyers tend to make decisions quickly, multiple offers are common, and sellers tend to look less favorable upon conditional offers, for those that are free to close.
In a balanced market, the number of homes on the market tends to be equal to the demand. As demand equals supply, sellers accept reasonable offers. Homes sell within a reasonable time period and prices generally remain stable.
A professional realtor has the experience, knowledge and resources to help you make the most of your move. Trained in economics, supply and demand, and local market conditions, your realtor can assess your situation and help you determine the right buying or selling time.
Even better, most realtors are happy to provide you with this service, FREE, and without obligation. Call today for your no cost obligation. With a professional realtor on your side, you'll make the most of market timing.
The costs associated with selling
You've spent considerable time and money on home improvements to bring your home into "show" condition. You've taken the dog to the neighbors when your realtor hosted open houses. You're pleased that your realtor has negotiated the best price on your behalf. The offer has been accepted and you're set for your move. Congratulations! You've accomplished a major milestone in selling your home.
There are financial items you'll want to consider upon the sale of your home. The buyer is typically responsible for these closing costs including:
- legal/notarial fees for handling the sales transaction
- disbursements or out-of-pocket expenses incurred by the lawyer or notary
- property tax and utility adjustments
- land transfer or "welcome" taxes
As the seller, you'll also have some debts to discharge before you can access your funds, including:
- real estate commissions
- certificate of location, or survey
- legal and discharge fees
- outstanding adjustments owed to the buyer
- outstanding municipal/school taxes or public service
- assessments
- outstanding mortgage balance and any charges associated with discharging your mortgage early (if you are not transferring your mortgage to your new home, or the buyer is not assuming it)
As fees and costs vary from province to province, and city to city, your professional realtor can advise you on the costs you're likely to face when selling your home. It's also a good idea to check with your financial advisor, your accountant and your lawyer prior to the sale.
How to sell your home fast for the best price
Buyers don't see your home the same way you do. They are very discriminating
about its condition, the neighborhood and the price. An average buyer will view
between 15-20, ranking yours among all the lot.
With this in mind, here are some measures you can take to ensure your home presents
well to a potential buyer, and garners you the best price, quickly.
Be clear about why you are selling
Knowing the whys of your move determines everything from setting the price,
to allocating funds for repairs and improvements. Is the price you obtain more
important than how long your home is on the market? Do you need to sell immediately?
Each why requires a different strategy. At the same time, you don't need to
reveal your why to anyone. Something negative might be used as a bargaining
tool at the negotiating table. If someone wants to know why you're selling,
politely respond that your housing needs have changed.
Conduct thorough research before setting a price
Establishing an offering price is an investment in your future. Find out what
similar homes in your neighborhood have sold for in the 6-12 months. Also check
out the prices of homes currently listed. The price you ask should be within
the range of similar homes in the neighborhood. If it's too high to too low,
buyers will question the reasons for this discrepancy. Your home could stay
on the market longer than you'd like. You may also have to adjust the price
and wind up getting less than you hoped.
Find a good real estate agent to represent your needs
A professional realtor is your best bet. This person has the educational background,
the industry and community connections to work in your best interests.
Maximize your home's sales potential
First impressions are absolutely critical. The look, the feel and the care of
your home elicit an emotional response. Even before they walk in your door,
a prospective buyer will try to imagine himself living in your home. Just like
a new outfit, buyers want to see if this home will "fit" their lifestyle. Clean
everything until it sparkles. Pick up, organize, throwaway, scrub, scour, dust
and disinfect. Be sure to complete all minor repairs. Buyers are especially
keen on work that may need to be completed.
Ensure all areas of the contract are covered
It's in your best interests to disclose everything you know about the property.
Failure to disclose could result in costly delays, litigation or even cancellation.
Most importantly, if a buyer knows about an item, he or she has no future recourse.
Be sure you understand all terms, costs and responsibilities.
Stay in your home until closing
It may be harder to sell a vacant home. Furniture, drapes and all the assortment
of daily activities go a long way to create the warmth and comfort of a home.
To some buyers, an unoccupied home could be seen as forlorn, forgotten and not
as appealing. You might have to reduce your price, depending upon the buyer.
At the same time, you're sending the message that you've found a new home, and
you likely need to sell fast.
Stay out of the way during showings
When buyers view your home, gently remove yourself and allow buyers to feel
at home. By pointing out features, improvements and decorating items, that are
meaningful to you, or you've spent money on, you could be seen as adding pressure
to the sale. Best to leave the showing to your realtor.
Get pre-approval for your next mortgage
Prior to shopping for your new home, be smart and get pre-approval. This means
you'll have your financial matters in place, and you're serious about making
an offer.
So you want to sell your home yourself?
You've decided to sell your home. The next question is: who is going to do the work? You ponder about choosing a real estate agent. You ponder about doing it yourself. Then you ponder again and again. Finally, you decide to do it yourself. After all, you'll save money by doing it this way.
Before you begin, however, take some time to review the following list of items you'll need to complete to ensure the successful sale of your home. Be sure you're fully equipped to handle each of these areas before selling your home.
- Deciding to sell. You'll need to conduct your own research regarding the current housing market, moving costs, consequences to your tax situation and your home equity.
- Preparing to sell. You may want to get a pre-sale inspection, to determine if any repairs should be made, and an appraisal to assess the value of your property.
- Set the price. The challenge of setting the right price is a balance between your desires to get the best price for your home without deterring buyers. You'll need to consider such items as recent sales for comparable homes in your neighborhood, location, current market conditions, season, amenities, repairs, and extras like deck, pool, garage, etc.
- Prepare your home. You'll want to present your home in the best possible light. Make needed repairs, remove the clutter, and make your home warm and inviting.
- Negotiate the deal. After reviewing all the factors associated with the price, you'll want to determine, in advance the lowest price you'll accept.
- Advertise your home. You'll want to place and pay for advertising in newspapers, Internet and other places. Then you'll field all questions, handle all open houses, and show your home to potential buyers.
- Close the sale. Other factors contribute to a successful closing including unsatisfactory home inspection, an appraisal that is to low to qualify for a mortgage, title problems and even a buyer with cold feet. You'll need to process all the paperwork, usually, with the assistance of a lawyer.
Be prepared for the work
You can easily see that selling your home involves more than posting a "For
Sale" sign on your lawn. There are many details to consider. There are also
many aspects of the sale that you may not have considered. In addition, you'll
want to ask yourself some questions, to realistically assess the work involved:
- Do you have the necessary knowledge, patience and sales skills?
- Can you negotiate a successful outcome when an aggressive buyer presents a less-favorable offer?
- Can you accurately access the current market value of your home, from your research sources?
- Do you know about the marketplace conditions that affect the value of your home?
- Can you determine whether a buyer qualifies for a mortgage?
- Do you understand real estate regulations and can prepare a binding sales agreement? What about counter-offers?
- Will you give up your evenings and weekends to show your home to prospective buyers, many who may be "tire-kickers?"
- Do you know the best places to advertise? What about the costs?
- Did you know that prospective buyers and bargain hunters might want a price reduction because there is no realtor involved?
- Do you understand the various types of mortgage financing available, and the effect they may have on you, the seller?
- Can you bring an objective opinion to the sale of your home, seeing it from a buyer's prospective?
- Can you put your emotional attachments to your home aside, and realize that selling your home is also a business transaction?
- Can you handle the numerous details involved in the sale? Do you have the necessary forms and legal documents used in the selling of real estate?
Consider a professional realtor
For most people, a home represents the largest financial asset they will ever
have. But it's more than dollars. It represents your family, your memories,
your goals and your dreams. From the time you start thinking about selling your
home, you're presented with numerous choices, decisions and uncertainties:
Is selling my home myself the right thing to do?
Is now a good time to sell?
Will I get the right price?
Should I remodel the house before selling?
What if my home doesn't sell?
All of these questions can seem overwhelming. Most of the errors made in the selling of homes relate to the following areas:
- Incorrect understanding about market conditions and pricing
- Relying on inappropriate advertising and marketing that does not generate buyers.
- Incorrect understanding of how the home buying and home selling processes work.
Before you sell your home yourself, why not consider the benefits of a professional
real estate team. Most importantly,
Full -service real estate services
Here's a listing of the benefits you'll receive when you choose a professional
realtor to sell your home:
- Access to the most current market conditions.
- Placement and payment of effective advertising in the right places, for the best results.
- Correct pricing of your home, to give you the highest price.
- Showing of your home in the most professional, effective manner.
- Screening of potential buyers and elimination of bargain shoppers.
- Effective negotiation.
- 24-7 availability. Most realtors are always on call, answering the phone at all hours, and being available at all times to show your home.
- Objective representation for offers and counter-offers.
- A professional team that listens to your needs, respects your opinions and allows you to make decisions.
- A professional team that understands the real estate industry, from both the buyer and seller perspective.
- A professional team that protects your rights.
- Full-time staff that handle the numerous details involved in the sale of your home.
- Resources to complete your transaction, from lawyers, inspectors, renovators, engineers to mortgage brokers.
- Access to a network of real estate marketing resources to place your home before the most qualified buyers.
- A professional team that adheres to a professional code of conduct, established by local and national associations.
- Expert advise on making improvements that will increase the price you'll receive on your home.
Selling yourself? Why you need a techno-savvy realtor more than ever!
While the Internet has changed many aspects of society, some things remain the same. In fact, recent research suggests that more "For Sale By Owners," are turning to a realtor to sell their home. A study released by the California Association of Realtors, January 2001, states that the number of "For Sale By Owners," who ultimately list their home with an agent has increased from 76 percent to 80 percent. The reasons include limited number of buyers, lower prices, and inadequate information.
Smaller pool of buyers
Most homeowners decide to sell a home themselves, to save the commission. However,
marketing research indicates that exposure to the most buyers nets the best
sales price. Formerly, buyers would search for homes using traditional venues
of newspapers and magazines. With the Internet, the supply of buyers has shifted.
That is, more than 50 percent of all buyers use the Internet to search for properties.
Now, more than ever, a For Sale By Owner, has even less of an opportunity for
a buyer to find his property. This could translate into less exposure and possibly
a lower selling price. A print ad now competes with a full blown 360-degree
on-line tour.
Slashed prices
Some buyers, when looking at a For Sale By Owner, automatically deduct 6-7%
from the price. Some buyers expect to be compensated for non-representation,
and are looking for bargains. In the end, the seller can net less than if he
or she listed with a realtor.
Needle-in-the-haystack
Advertising on the web is often like looking for a "needle-in-the-haystack."
A seller can place an ad on the web and try to distinguish their listing from
thousands of others. However, without home page optimization, meta tags and
other branding strategies that attract buyers, the For Sale By Owner listing
is very ineffective. Access to buyers is limited.
Instant gratification – lost buyers
Many people who use the Web are looking for instant gratification. On average,
if visitors don't find what they are looking for, they will stay for about one
minute and then move on. With some For Sale By Owner web sites, there is often
no way to capture the visitor's contact information or for follow-up. Many For
Sale By Owner sites lack the sophistication and technology to efficiently track
visitors to the site.
Additionally, a buyer wants to view as many properties as possible. With only
a few listings on some For Sale By Owner sites, a buyer will likely move on
very quickly. The visitor's need for instant gratification is a strong detriment
to a For Sale By Owner site with few listings.
Inadequate information
Sometimes a For Sale By Owner company lacks the technology and sophistication
for proper marketing on the web. As they are not affiliated with any established
company, or real estate firm, many people don't know how to find them. Using
a search engine, a seller types in For Sale By Owner. A stream of listings appears,
Zip Realty, Home Find, Sell Yourself, buried among a host of For Sale By Owner
companies. How does the seller know about the reputation, and performance of
this site, or the company? What about credibility? Anyone with a web site can
create the impression of being in business. However, posting a site, claiming
to save commissions and eliminating a realtor, does little to attract buyers.
Conversely, a professional realtor who works under the banner of an established
real estate company, as the support, technology, background and experience to
attract the most potential buyers. This network of people, education, resources
and expertise, works to the advantage of the seller, not against them.
On some For Sale By Owner sites, some buyers are hesitant to provide contact information to a stranger. With a professional realtor, a buyer identifies the homes they want to seek and then contacts a realtor who shows them the homes they want to see – usually all within the same day.
Avoid these costly errors
Although it seems like an easy task, selling a home is a complex and time-consuming
process. Many For Sale By Owners, tend to make a mistake in these areas:
- Incorrect understanding about market conditions and pricing.
- Relying on inappropriate advertising and marketing that does not generate buyers.
- Incorrect understanding of how both the home buying and home selling processes work.
- Ineffective ways to determine qualified buyers
Less hassle with a techno-savvy realtor
The Internet has changed the way buyers and sellers shop for real estate. According
to the NAR (National Association of Realtors), 89% of homebuyers consulted the
Internet in some way for their real estate transaction. Consumers now have access
to the same listing information that was once available only to Realtors. A
techno-savvy realtor has access to the latest Internet technology, making your
life easier. These tools may include:
- Instant access to comprehensive neighborhood data
- On-line home tours
- Extensive property listings
- Immediate e-mail notification of just-listed homes meeting your criteria
- Referral networks and on-line forums,
- Reports and newsletters on current real estate conditions in your area
The result: you get more information, more easily. With electronic files, you
have less paperwork to deal with. And since your agent uses e-mail, you can
even eliminate phone tag.
The world of real estate has changed – for the better. The web offers unlimited
opportunities to give consumers the information they need to make informed,
real estate decisions. When selling or buying, it is vital to get to where the
traffic is. Web sites that provide MLS information have substantial traffic.
These sites are designed to put listings before the public. And, in the end,
that's what it's really about. Getting the right home you want and need.
The right price affects your bottom line
When you're selling your home, the price you set is a critical factor in the return you'll receive. That's why you need a professional evaluation from an experienced realtor. This person can provide you with an honest assessment of your home, based on several factors including:
- Market conditions
- Condition of your home
- Repairs or improvements
- Time frame
In real estate terms, market value is the price at which a particular house, in its current condition, will sell within 30 to 90 days.
If the price of your home is too high, several things could happen:
- Limits buyers. Potential buyers may not view your home, because it would be out of their buying range.
- Limits showings. Other salespeople may be less reluctant to view your home.
- Used as leverage. Other realtors may use this home to sell against homes that are better priced.
- Extended stay on the market. When a home is on the market too long, it may be perceived as defective. Buyers may wonder, "what's wrong," or "why hasn't this sold?"
- Lower price. An overpriced home, still on the market beyond the average selling time, could lead a lower selling price. To sell it, you will have to reduce the price, sometimes, several times. In the end, you'll probably get less than if it had been properly priced at the start.
- Wasted time and energy. A bank appraisal is most often required to finance a home.
Realtors have known it for years – Well-kept homes, properly priced in the beginning
always get you the fast sale for the best price! And that's why you need a professional
to assist you in the selling of your home.
When you are buying a selling your home, naturally, your most important concern is getting the best price. As a seller, you may have lived in your home for years. You've contributed towards the mortgage each month. You've maintained your home. And now, it's only right that you should reap the rewards of your efforts.
As a buyer, you want to ensure you are paying fair value for a home. How then, do you get fair market value for your home? In this article we'll explain, specific house, present condition and 30 to 90 days, the three factors that influence market value.
In this article, we refer to market value, as it applies to single-family homes only. Evaluation methods are different for apartments and commercial properties.
The term, "market value," is a broad and confusing term. Consumers shop in a store and pay the price indicated on the price tag. A book is worth $18.95 according to the tag. A car is worth $15,000 because the price tag says it is. We rarely question the value or worth placed on these items. We just pay the price.
At the end of the season, if an item did not sell, its value changes. The $18.95 book did not attract enough buyers. Therefore, the store puts the book on sale to entice people to buy the unsold books.
Initially, the market value of the book was $18.95. However, when new titles arrive on the shelf, or the subject of the book is no longer popular, the market value could drop to $9.95.
Therefore, market value is the price that an item will sell for, within a reasonable time period. When considering real estate, "reasonable" refers to one to three months.
When it comes to determining fair market value on a home, the following definition is helpful:
"Market value is the price at which a particular house, in its current condition, will sell within 30 to 90 days."
Three criteria make up this definition;
- Specific house
- Present condition
- 30 to 90 days
To determine a home's value, most people use an appraisal or comparative market evaluations.
An appraisal, conducted by a certified appraiser, is a professional opinion of a property's market value, based on recent sales of comparable properties, location, square footage, construction quality, floor plan, shopping, schools, transportation, etc. On average, this type of evaluation costs $300 - $500. Lenders require an appraisal as part of the mortgage application process.
A comparative market evaluation (CMA), performed by a Realtor, is a free, informal estimate of market value, based on sales of comparable properties.
Specific house
Market value is limited to your specific house. The location and neighborhood
of your particular home is the starting point for this determination. The exact
same house in another city, or another neighborhood across town, does not matter
for your determination.
For example, a house in St. Albert could be worth $375,000. But if the exact same home was located in Edmonton, it may only be valued at $300,000.
Home prices also fluctutate significantly from city to city and from neighborhood to neighborhood. Therefore, when considering the market value of your home, it must be compared to similar homes in the same or adjoning neighborhoods.
Present condition
The second factor in determining market value is the condition of your home.
Is it in "showing" condition? Does it need some improvements? The condition
of your home determines the number of buyers who may want to view and purchase
the property. This relates to the time your home will remain on the market before
it sells. Most home buyers want a reasonably priced home, in good condition.
They may look less favourably on a home that requires major work.
Some people determine a market value by subtracting the amount of estimated fix-up costs from the selling price. This may not be the best way to evaluate a home. A home in good condition sells for $80,000. A home you may like needs $4,000 in repairs. This may not equate to a market value of $76,000 ($80,000 - $4,000). Why not?
Homes that require work take longer to sell. To attract more buyers, the price may have to be reduced beyond the cost of the repairs. It's all a matter of how much someone is willing to pay for these repairs. Additionally, determining market value for a home that needs some work, is not an exact science. Some realtors suggest subtracting approximately two to three times the amount of the fix-up costs.
30 to 90 days
In most markets, a home will sell within 30 to 90 days. If it doesn't, the price
is probably too high. Even homes that are "perfect" won't sell in this time,
if the price is too high.
On the opposite end: if a house sells within a short period, perhaps the asking price was too low. Or, it could be a hot market. When there are housing shortages, or fear of rising prices, many homes are purchased within a matter of days of the listing.
How to make the most of your move-up
When you're buying a first time home, the process is usually straight forward. However, when you're moving to a second or third home, other issues arise, making the process more complicated. You'll need to consider financing, and selling your home at the right time. This way, you won't have the added responsibility of paying the mortgage on two homes. You'll also want to coordinate closings, so you can plan your move most efficiently. Here are some of the most effective things you can do to make the most of your move up.
Save your feet and your time
Many people spend much time shopping for a home, only to be disappointed because
it has either sold or is beyond the budget. This hit and miss strategy is time
consuming and very frustrating. A better alternative is to use the services
provided by a professional realtor. As a client, you have access to a Buyer
Profile System/House Hunting System. Your realtor will provide you with regular
updates on all available property that match your needs. You'll stay on budget,
save your feet, and come closer to finding the home of your dreams, faster
than trying to shop yourself.
Make improvements on your existing home
A home that shows well, and in good condition always gets the highest price.
A home in less favorable condition is less appealing to a buyer. You'll easily
reap the rewards of completing minor repairs to your home. Also, make these
improvements prior to putting your home on the market. You'll want to present
you best to get the best!
Sell your present home first
The easiest and wisest strategy is to sell your home before you buy. This way,
you won't be at a disadvantage at the negotiating table, or feel pressured to
accept a below-market value, to meet a purchase deadline. With your home already
sold, there will be no strings attached on your next one. When you do find a
new home, you have the option of putting a subject to on the contact. You can
give yourself time to find a new home in plenty of time. In a slow market, perhaps
you could rent your home and put it on the market later. However, with this
option, check with your lawyer, tax advisor and accountant to ensure all legal,
tax and financial aspects are considered.
Some professional realtors offer a Guaranteed Sale Trade-Up Program. With this service, the realtor guarantees the sale of your current home before possession of your next one. If you've found the home of your choice, and your current home has not sold, the realtor will buy the home from you. You're free to make your move without stress and worry.
Get mortgage pre-approval
Pre-approval is your green light and your maximum power. In a short time, you'll
know how much you qualify for, when moving up to a larger home. When you find
your new home, you can present an offer immediately. A seller will often view
your offer more favorably when financing arrangements are established.
Co-ordinate closings
With two major transactions there are double the details of mortgage experts,
appraisers, lawyers, loan officers, title registrations and home inspectors.
A professional realtor can assist you in ensuring all the logistical details
of your transaction are handled correctly, and on time.
How to keep your head during a divorce
Divorce brings many emotional, financial, legal and housing considerations. At this time, non-emotional, objective and informative information can help you make the right decision, when it comes to the "house."
Do you want to stay in your home? Will this bring unpleasant memories? Do you want to reduce change by staying put? Perhaps you'd like to start over with a new home. After considering these logistical questions, the budget will also determine your direction. Can you manage the mortgage payments on one salary? Will your spouse be contributing? Can you refinance the home? Perhaps it's better to sell and buy another home?
When it comes to divorce and the house, there are four options:
- Sell the house and split the proceeds
- Buy out your spouse
- Have your spouse buy you out
- Retain your ownership
Here's a review of the financial and legal considerations of each of these options.
Sell the house and split the proceeds
In this situation you'll want to maximize your home's selling price. A professional
realtor can assist you in this regard. He or she can give you a professional
evaluation of your home, in consideration of market, similar homes that have
sold in the neighborhood, and condition of the home. You'll also understand
what your net proceeds will be, after selling price, expenses and divorce settlement.
Your settlement may not be 50/50, but rather, will be determined by negotiation
and legal requirements.
Buy out your spouse
If you're planning to stay put, consider the financial obligations. Can you
continue making the mortgage payments on one salary? Perhaps you can renegotiate
the mortgage, or look at finding additional sources of income.
Have your spouse buy you out
When you decide to leave, you have the opportunity of starting again in new
surroundings. In the process, however, be sure to speak to a lawyer and your
financial institution to arrange for the proper transfer of title. If both husband
and wife are listed on the title, then you are both liable for the mortgage.
With this liability, it could be difficult to qualify for a new mortgage.
Retain your ownership
Some people choose to keep the ownership as it is, while one party remains in
the home. This works for the short term. However, for the long term, you'll
want to consider tax and estate issues.
Get advice before you take any action
Before you make any decision, be sure to speak with professionals including
a realtor, lawyer, accountant and financial representative. Be sure you consider
all your options, and understand the ramifications of each. With this information
you're sure to make the decision that is in your best interests.
The 9 (nine) biggest relocation mistakes and how to avoid them
On the one hand, moving can be an exciting adventure. On the other hand, it could be a stressful time if things go wrong. This report explains the 9 (nine) most common mistakes when people relocate. When you plan ahead, you'll avoid these pitfalls and ensure your move is handled smoothly.
1. Lack of information
Contact the chamber of commerce, tourism department, municipality, or library
in your new community. At the same time, compare salaries, cost of living, taxes
and housing prices.
2. Home not priced and ready for showing
Before you sell your home, complete repairs. Often, it's the little things,
like chipped paint, worn caulking and sticky doors that potential buyers notice.
Have your home cleaned, including carpets. Have a Comparable Market Analysis
(CMA) completed by one or two realtors to ensure a competitive price.
3. Not planning for temporary housing between destinations
You may need to set up temporary housing arrangements until the closing of your
new home. This could take from a few days to a few months. If you need interim
housing for a few days, perhaps staying in a hotel is the simplest solution.
For housing longer than a month, you may want to consider an apartment with
a short-term lease.
4. Not being pre-approved
Sellers are usually eager to negotiate with someone who has immediate buying
power.
5. Not completing a professional home inspection
This applies for both the home you're selling and the one you're buying, although
who pays for the inspection (buyer or seller) is negotiable in each separate
contract.
6. Insufficient time to handle children's concerns
During relocation a child could feel lost, sad, angry or confused. Sometimes,
under the stress of completing so many details, the temptation is to get settled
as quickly as possible so everyone feels at home. Talk to your children during
the process. They'll feel safe, cared for and comfortable. Acquaint your children
with the new neighborhood. If possible, have them meet new teachers and other
children in their new school before moving. Try not to move in the middle of
a school year.
7. Not being prepared for culture shock
Sometimes, when people move from familiar surroundings to a new community, culture
shock can manifest. Symptoms can range from headaches, stomach aches, impatience,
sleep problems to anger. These feelings are all normal, and do pass over time.
It may be helpful to incorporate the old with the new. This could include taking
classes, joining clubs, and pursuing activities you once enjoyed. It takes about
six to ten months, for someone to feel "at home" in a new community.
8. Not using local, licensed professionals
Every area is different. Understanding the communities that make up your destination
city, a realtor can find you a home that matches your needs. You'll save time
and energy by having a professional do the work for you.
9. Not reading your employer's relocation policies
Read your employer's relocation policies carefully, for the amount of reimbursement.
Keep good records and copies of your receipts, as moving expenses are deductible
under certain conditions established by Revenue Canada.