Selling Your Current Home & Finding The Next One

This is valid concern, but with the Realtor being on the same page as you, we would negotiate a long possession date to allow enough time to shop. We have to consider worst case scenarios still, and either putting belongings in storage and staying with relatives or renting a place short term until we found the next home are some solutions. Agreements can also be amended to adjust terms, so keep that in mind. We have tools to use to ensure this doesn't happen.

Being well-positioned in the marketplace is key. Preparing the home to the upmost condition and being realistic with pricing scenarios within the current market context is key to getting your home sold. Working through the process laid out above will best position you to sell at the best possible price at that time. Doing this in reverse (buying first then selling) will most certainly leave you with less money in the end.

In a situation where the path above wasn't achievable, we have to understand the numbers behind juggling both mortgages. The first step is to talk to a qualified professional mortgage broker. Getting a broader perspective is key to understand the worst case scenario and if you're comfortable with that IF it happens is important. Lenders deal with situations like this every day. There are solutions provided by banks / lenders, if it comes to that, but it's important to understand all scenarios.

A bridge loan is a short-term loan to help with buying first, then selling the home. The loan helps secure your future purchase, which is then repaid once your current home is sold. Bridge loans typically have higher interest rates and specific terms (use of funds, etc.) which you need to be careful in reviewing. Bridge loans come in handy if possession dates can't be perfectly lined up if you were to purchase the new home first, then sell your current home after.

There are a few things that de-value a home the most that you should be aware of. 

Poor Maintenance & Neglect: This is one of the biggest contributors of a decline in value of a home. Signs of deferred upkeep such as a leaking roof, peeling paint, rotting baseboards, mold, outdated electrical, plumbing and HVAC systems scare off potential buyers during a sale. This allows buyers to negotiate lower prices, or just look elsewhere.

Over-Personalization & Customization: Recall when we're selling a home, we want to appeal to the largest buyer set - ones who want move-in ready spaces that they are familiar with and can envision themselves using. Too much customization limits the appeal to buyers (therefore you're only marketing to a very specific buyer, who may or may not be in the market). Unusual uses of rooms (converting a bedroom to a gym, closet, or painting with bold colours) limits the attractiveness of the home. Just because it works for you doesn't mean it will work for 90% of the buyers who we're marking to.

Location-Related Issues: Some issues are out of our control. Be realistic with comparable sales that you're reviewing; do they share similar location-based features? Close to industrial, neighbourhood decline, types of homes, street style, curb appeal, even the types of trees lining the street can impact it's attractiveness. 

Poor Quality Renovations: Not all improvements add value. Ever seen a hot tub in a living room? I have. Not a great idea for a buyer. Although with a high 'cool' factor, it has a very strong negative 'salability' factor. Shoddy craftsmanship, low quality materials reduce the attractiveness of the home and leaves the buyer with more questions than answers.

Neglected Curb-Appeal: Curb appeal is the first thing buyers see when they drive by. We want to create a sense of intrigue in the right way. Overgrown lawns, dead patches, weeds, cracked driveways, peeling paint, faded siding turns buyers off. "If the outside looks like this, how bad is the inside?" is the line of thinking here.