Real Estate Talk:
Consider resale when buying
Examine issues that may affect resale when investing in a home
By Joseph Marovitch
Updated April 7, 2021
Some people purchase a property with the idea they are never going to leave that property. We are all part of the circle of life. We have no choice. We are born into our parent’s home. We move to our first apartment. We marry and buy our first house or condo. We have children and need a larger home. The kids move out and we need a smaller home. We get old and require assisted living, therefore, perhaps move to a retirement home. People move and consequently, resale must always be considered.
Price and location are major factors when searching for a home while considering resale. Is the price fair, is the location good? Will I get my money back when I sell and will the property be easy or difficult to sell? This is the beginning of the process.
Now you have purchased the home and you want to decorate. You like the colour pink, but does everyone else like the colour pink when it is time to sell? You want more living room therefore you decide to make the house larger and in doing so, sacrifice space in the backyard. When it is time to sell, does everyone else like a small backyard?
It is important to get the best price when buying but it is also important to choose the best location possible within your budget. A property should be as easy as possible to sell when the time comes. If you get a great price for a property next to a highway or by train tracks, it may take a very long time to sell and you could even lose money.
Price and location are major factors when searching for a home while considering resale.
Neutral colours in a home, such as off-white, creams and other light colours, are better for resale. Buyers are attracted by spacious rooms, nice bathrooms and up-to-date well-designed kitchens.
Some issues that affect resale negatively are:
- Price too high, house in poor condition, dilapidated appearance.
- Location near a highway, train track or too close to a school, causing noise and traffic inconveniences.
- Dated bathrooms, old-fashioned kitchens, small bedrooms, tandem garages or no garage; pools can be a non-starter for families with young children.
‘Buyers are attracted by spacious rooms, nice bathrooms and up-to-date well-designed kitchens.’
These are just a few issues that can generally affect resale in a negative way. It is better to realize these issues at the beginning than to find out at the end when selling.
Should you have questions or comments, please refer to the comments section at the bottom of the page. As well, to view past articles, click here.
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State of the market
As we enter another wave of variant COVID infections and the government contemplates another severe lockdown, opportunities for sellers continue. With another wave, people stay home and travel for necessity only. A lockdown means properties don’t come to market and inventory remains low. For those selling during a pandemic, selling can wait.
For those who must find a place to live, purchasing cannot wait, therefore, even current sellers and brokers who have the best intention by placing properties on the market at fair value, end up with many buyers and a bidding war of multiple offers causing the price of any property to rise much higher with the demand.
Banks are concerned with a housing bubble. Interest rates will remain low as long as people are unemployed, however, the more affluent appear to be amassing capital as there is little to spend on other than household goods and food. The average income earner is receiving CERB subsidies from the government and is also amassing capital.
‘Buyers may not buy now due to low inventory, but when the pandemic is under control and more homes come to market, people will have the funds to buy at competitive prices.’
Eventually, we will get around the pandemic either by vaccination or technological advances in masks and protocols to maintain safety. When this occurs, life will go on, the economy will move forward and there will be money available to purchase. More property will enter the market and prices will even out.
Long-term prospects are not as bad as they may seem. With adversity, there also comes opportunity. Businesses have closed but new ones are entering the market. Buyers may not buy now due to low inventory, but when the pandemic is under control and more homes come to market, people will have the funds to buy at competitive prices.
For any questions, please feel free to write in the comment section that follows. I would be pleased to answer.
Have a great week and stay safe!
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Joseph Marovitch has worked in the service industry for over 30 years. His first career was working with families from Westmount and surrounding areas, hosting children between the ages of 6 to 16 as the owner and director of Camp Maromac, a sports and arts sleep away summer camp established in 1968. Using the same strengths caring for the families, such as reliability, integrity, honesty and a deep sense of protecting the interests of those he is responsible for, Joseph applies this to his present real estate broker career. Should you have questions please feel free to contact Joseph Marovitch at 514 825-8771, or firstname.lastname@example.org