Understand Market Conditions
Getting ready to buy or sell your home.
As with purchasing a home, you want to list with an REALTOR® who is the expert in your location. After all, potential purchasers will be calling this “area expert” to inquire about houses for sale. There will be a few of them who are knowledgeable about your neighbourhood. Call them up and interview your potential RELATOR®. You need to feel comfortable with them, after all, they will be working for you.
The real estate market is in constant flux, not only as a whole but in particular areas as well. Knowing what is going on in the overall and local real estate markets will help you understand how these conditions can affect the sale of your home. We’ve designed the following chart to help give you an overview of the three significant market positions. When you meet with your REALTOR®, ask about the current state of the market.
Buyers’ Market:
The supply of homes on the market exceeds demand.
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Characteristics: High inventory of homes. Few buyers compared to availability. Homes usually stay on the market longer. Prices are stable or perhaps dropping.
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Implications: Buyers spend more time looking for a home, and when they negotiate, they usually have more leverage.
Sellers’ Market:
The number of potential buyers exceeds the supply of homes on the market.
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What’s more, if it’s a buyers’ market, you may be in a strong position to purchase a new home, especially if you have accumulated some equity in your current property.
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Characteristics: There is a smaller inventory of homes with many buyers. Homes sell quickly. Prices usually increase.
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Implications: Prices may be higher or perhaps climbing. Buying decisions must be made quickly. Conditional offers may be rejected.
Balanced Market:
The number of homes on the market is roughly equal to the demand.
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Speak to your REALTOR® and start your new home search as soon as your existing home hits the market.
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Characteristics: Demand equals supply. Sellers accept reasonable offers. Homes sell within a reasonable time period. Prices generally remain stable.
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Implications: There is less tension among buyers and sellers. There is a reasonable number of homes to choose from.
Gather the Necessary Documents
Make sure you have all the information that you'll need handy.
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Mortgage documents: you may wish to meet with your loans officer to discuss transferring, discharging or paying out your mortgage. This is a good time to begin negotiations on the terms of your next mortgage.
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Property survey: be sure to inform your REALTOR® if there have been any changes to your property that could affect the accuracy of the survey.
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Your deed or transfer of title document.
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Tax assessment documents.
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Utility bills.
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Other claims relating to your home:
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separation agreement or court order
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will or probate documents
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liens
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unpaid judgments against you
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unpaid taxes
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unpaid utilities
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pending litigation
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Pertinent condominium documents (if you live in this type of home).
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Maintenance history (include repair receipts).
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Items and information that will make your home more marketable:
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photographs or videos of your home with the garden in bloom or your pool open and beautiful
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conceptual ideas for upgrades or renovations that you have considered
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