A refresher course on buying and selling this autumn

Buying and selling this autumn means jumping into a real estate market that has undergone several changes within the last year. Interest rates, housing prices, and supply and demand have all jumped around, and you might not be sure where to start. Whether you plan on buying or selling a home this season, here are some important steps to consider. 

If you’re buying…

Determine your housing needs and wants

One of your first steps once you decide to buy a home should be figuring out what you need and want in a future property. Your needs are things you truly require, while your wants are more negotiable. For example, many home owners need a certain number of bedrooms, or maybe they need to live in a neighbourhood with access to public transportation if they don’t own a car. On the other hand, a buyer’s wants might include a double garage or a finished basement. It is important to determine your specific requirements before you start house hunting. This will help you narrow down potential properties and your price range. The more you know about what you want, the easier it will be to find it.

Understand current interest rates

Don’t worry, you don’t need to be an expert on interest rates and the housing market! You will be working with mortgage professionals who will handle the complex details. However, it is handy to have a basic understanding of where rates currently stand so you know what to expect. At the time of writing, the overnight lending rate is five per cent, and most mortgage rates are sitting in the five to six per cent range. These are higher numbers than we have seen in recent years, but they are not likely to experience more increases in the near to moderate future. 

Get your pre-approval

As always, we recommend securing a mortgage pre-approval before you get much further into the buying process. This allows you to see what mortgage amount you might qualify for based on your current financial situation. Pre-approvals are useful because they give you an idea of your position in the market, and allow you to take the time to improve your finances if necessary. You can read more about the importance of a pre-approval here.

Find the right real estate agent

Using the right professionals is essential during the buying process. A real estate agent will help you determine an appropriate budget, find suitable properties, and make offers. These are all crucial steps, and they require professional help. Buyers who try to go solo run into difficulties and barriers more often than not! Using a realtor will ensure you have the smoothest experience possible.

If you’re selling…

Complete repairs and updates

Sellers will want their homes to be in the best shape possible before putting it on the market. This will help you get the best sale, and will likely catch the attention of buyers sooner. You don’t need to completely redesign your home, but you should make sure any necessary repairs are done and the key areas are updated. For example, things like leaky faucets or loose roof shingles should be fixed up, and your air conditioning and furnace units should be working properly.

Secure a real estate agent

For both buying and selling this autumn, a real estate agent is essential! As a seller, you will want a realtor to help you determine your home’s asking price, and to assist you with navigating offers from buyers. Similar to buyers who try to go through the experience alone, not using a real estate agent as a seller will make it extremely difficult for you to sell your property.

Determine your future plans

If you are selling your home, what are your next steps? Many sellers are also buyers because they plan to purchase another property. If this is the case, you will be playing both roles, which means you will have a lot to think about! Before you put your home on the market, you should have a plan laid out in terms of when and where you are going next, and how you will finance this new purchase. Many people use the sale of their current property to support the purchase of their new one. This means you may need to look into bridge financing. Take some time to map out your journey before listing your home.

Buying and selling this autumn can both be great experiences, as the fall is often a busy time for the housing market. Before you dive in, however, it’s important to take the time to prepare yourself! Following these steps, and reaching out to a mortgage broker, will ensure your autumnal market experience is a successful one.

If you have any questions about your mortgage, give us a call at Centum Home Lenders! You can reach us at 506-854-6847, or get in touch with us here.