Real Estate Talk:
Consider resale when buying
Examine issues that may affect resale when investing in a home
By Joseph Marovitch
Updated March 6, 2019
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 are also good for resale. Off white, creams and other light colours are better for resale. Buyers are attracted by spacious rooms, nice bathrooms and functional 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 houses with no garage, pools can be a no-starter for families with young children.
‘Buyers are attracted by spacious rooms, nice bathrooms and functional kitchens.’
These are just a few issues that can generally effect resale in a negative way. It is better to realize these issues at the beginning then finding out at the end when selling.
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Next article: Selling process for income property
State of the market
It is strange that we are in the midst of such a hot market where prices are rising, buyers are buying and yet some properties that appear to be well priced, do not sell. They have been on the market for six months or a year and the asking price is reasonable, yet these properties end up as expired listings. Properties must be properly marketed to sell. Reasons that a property that is well priced may not sell, include not enough exposure or exposure to the wrong group of buyers. Each property is distinct and has a best use and best value for that use.
For example, a couple purchases an old industrial loft to use as a home. Where once the space was used to create wood furniture with high ceilings, exposed brick walls and concrete floors, the owner has built a kitchen, bathroom and bedroom. The building is located in an industrial part of the city but is a home. The seller then decides to sell and believes the best buyer is an artist or other creative people. As time passes, the seller receives no visits or offers and has priced the property in comparison to other homes nearby, not realizing the property has a much higher value as an industrial space. This is an example of a property that is serving a function it was not intended for and is in a location where it should not be if it is a home.
‘Target the audience who would best suit the property and expose the property to the maximum.’
Another example of a property that is well priced but is not selling is a property that has no exposure through paper or online ads. The owner is selling with a sign out front only, no social media, no network of potential buyers or brokers.
Then there is the broker who is new and has no network or capital to place ads. There are also brokers who just acquire the listing and assume other brokers will sell the property.
These issues should not occur. The market is booming and prices are rising. If you are going to sell, then find the right use for the property that provides the most value to the most people. Target the audience who would best suit the property and expose the property to the maximum.
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 to, 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 email@example.com