When you look at the real estate market today, it can be hard to believe that there was ever a time that we could call it “normal.” Back then, if your existing home began to feel a little too cramped for your needs, the solution was simple. Just put it on the market and use the proceeds from your sale to buy a house with more space.
But it seems nothing is simple anymore. In the current market, some homes sell within days of being listed with multiple offers and bidding wars. Others sit on the market with very little interest from local buyers. And finding a suitable new house after yours sells is even more challenging.
This uncertainty can make upsizing a house such a daunting and even frightening experience that you may be tempted to pitch a tent in your backyard and call it a day. Let’s take a look at some of the current conditions that make it so difficult to find and purchase a home in Etobicoke and what resources may be available to help you.
How Did We Get Here?
Toronto has always been a highly sought-after city, and it is well known for being pricier than surrounding areas. But the demand for housing has increased dramatically, and supply has not kept up. All three levels of government are now scrambling to create new housing, hence the amount of construction you see everywhere and new laws like the foreign buyer’s ban and the much-detested vacant land tax.
Unfortunately, you don’t have to be a cynic to see that it could very well be too little, too late. The result of all of these factors means that you could struggle to find a suitable listing in the first place. And when you do, multiple offer scenarios and bidding wars can drive up the price even more.
Downsizing in this current market also has its challenges, but there’s no need to fret! Here are some resources that can help you:
- How Seniors Can Navigate an Ever-Changing Real Estate Market
- Why Work with an SRES® Agent as a Senior?
- A Practical Guide To Downsizing
The Challenges of Today’s Etobicoke Real Estate Market
The first step to a successful transition in a challenging market is to clearly understand what you’re up against. In past seller’s markets, one solution was to buy first before selling your existing home. This would take the stress and hurry out of finding a suitable listing. If it took a long time, there would be no need to sweat it because you still had a roof over your head.
In the current climate, things are not so straightforward anymore. First of all, selling your existing home may not be as easy as you realize, a fact that takes many homeowners by surprise. Today’s real estate market is unpredictable. When a fast sale is no longer guaranteed, buying first can be a risky move. It can be even worse when you have an eager and slightly unethical real estate agent who overinflates the value of your house to try to get you to sell. Unfortunately, this is also something that is happening more often as listings are rare and the market becomes more demanding.
Navigating the Obstacles
If you want to enjoy a seamless transition while getting the best value, you must do everything possible to earn top dollar when selling your home. An experienced real estate agent can help you do this. In addition, here are a few more tips for succeeding in this tough market.
Be Conservative
You must be very conservative about the value of your house and how long it will take to sell, especially if you plan to buy first. More than ever, you should err on the side of caution lest you find yourself struggling to afford your new home because your existing one sold for less than you hoped.
Be Flexible
In a normal market, the typical first step to upsizing is to create an extensive list of wants and needs that you want your new home to have. But in this climate, a critical inventory shortage means you may feel underwhelmed with the number of listings you have to choose from. Being a little more flexible about your list of wants in your new home will help you keep your options open.
Be Prepared to Act Quickly
When the right listing does come up, there’s a good chance it will not last long on the market. With so much competition to contend with, you want to be in a strong position to negotiate and act quickly. Getting pre-approved for your mortgage ahead of time will help as it allows you to make an offer without the condition of financing.
Buy and Sell in the Same Market
If this advice seems familiar, there’s a good reason for it. We have always recommended that clients buy and sell in the same market rather than trying to time it perfectly. If prices go up, you’re covered because the high value of your own house will help you afford the next. If prices are down, you can still afford to buy your new home even when earning less from your sale.
Now, buying and selling in the same market is more critical than ever, but the market is also more unpredictable than ever. A few years ago, a specific set of conditions could last for several months or more. Now, everything can change within a few days or weeks at most. If you put a deposit on a new home, be sure that your existing property is ready to hit the market immediately.
Are you looking for even more resources to help you sell your Etobicoke home? The following articles can help:
- Why List Your Home in a Low-Inventory Market?
- What Is Home Staging?
- What to Look For in a Real Estate Agent When Selling Your Home
Prepare, Price, and Promote Effectively
Often known as the “three Ps” of real estate, these strategies are essential to earn the highest amount possible when selling your home. In the current market, everyone is nervous. Buyers are eager and excited to land the home of their dreams, but they’re also frightened and intimidated by the sheer size of the commitment. Not everyone searching is ready to act, and you don’t have time to waste.
- Pricing your home competitively for the market means you will generate the most interest from buyers who are serious and qualified.
- Preparing your home helps your listing stand out from others in your area and entices potential buyers to fall in love at first sight. The more they desire the property, the more likely they are to place a competitive bid!
- Promoting your listing extensively means reaching potential buyers wherever they are searching, online or offline. Ideally, you want to generate interest from multiple people.
Work With a Local Real Estate Agent
The above tips are essential to help you succeed when upsizing a home in Etobicoke today. But an experienced agent is your best resource, and not just because they can help you negotiate in a tough market.
One of the best things about working with a local Realtor® is they are connected with other real estate professionals and can often give you access to hard-to-find or unadvertised listings. This is invaluable in a low inventory market where some homes don’t even officially make it onto the MLS®.
Patience Is Paramount
When is the best time to start thinking about your move? It’s when you would like to but don’t need to. This allows you to sit back and be patient about the whole process. If you miss an opportunity, it’s not the end of the world. There will be another listing, and you will be primed and ready to act when the perfect home comes along.
Are you ready to upsize in Etobicoke? We can help by keeping an eye on the market and guiding you step by step through the entire process. Reach out today at contact@thompsonsells.com or call 416-450-5900 with any questions or to get started.
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