Homeowners may have more work to do when trying to move and sell a home simultaneously. There may be a variety of challenges that spring up when attempting this unique feat. There is much to do when listing, marketing and selling a home. It is an extra burden to attempt to move during this stressful period. What should Toronto homeowners know about moving and selling a home during the same stretch of time?
Many Steps to Selling a Home
Toronto homeowners who want to sell their home have to proceed through a number of steps in order to achieve their goal. It will be necessary to prepare a home for sale, make necessary repairs and home improvements, stage a home and price a home well for the market. It can take longer to finish with required repairs and if a home is not priced right, it may linger on the market, costing homeowners extra time, money and effort.
In addition, one may receive an offer on the home and the buyer may fail to get approved for a mortgage loan or as they proceed further, may back out after a home inspection or other issue. This forces a homeowner to go back to showing and attracting potential buyers. Selling a home in a competitive market by itself is not always as straightforward as one may hope and owners may have to make additional repairs after the home is inspected in order for the sale to go through. Therefore selling a home while also moving may not be the best choice for those attempting to do so for the first time. It may be more profitable for some to sell a home before buying another.
Canadian Real Estate Contingency Clauses
As one speaks with their agent or real estate lawyer, they may understand that certain contingency clauses may be inserted into a contract. Sellers may benefit as they can, in certain situations, continue to show their home, even though the home may be under contract. Certain actions are expected to occur within specific timeframes. If a contingency is not met, an opportunity arises for either party to break the contract. Canadian contingency clauses may include:
- Subject to financing;
- Subject to inspection; and
- Subject to sale.
It helps a seller to look for a buyer who has already been pre-approved when it comes to a home mortgage. As it can take significant time to sell a home, one may want to know whether or not the buyer has their home on the market. One needs to gauge the seriousness of any buyer to close on a sale and be able to finance the purchase of a new home. Even with pre-approval on a home loan, an applicant may not receive a home mortgage loan.
Moving When Selling
As a Toronto-based agent shows a home to potential buyers, it is beneficial to keep it showroom ready. However, this may be more difficult when attempting to also move. Sellers may need to take steps to organize their home, throw or donate unnecessary items and properly store desired items in such a way as not to create an eyesore or a hindrance to an agent. Some may be able to organize items in boxes and shelves in basements or a garage. Remember that potential buyers do want to see into closets and other storage spaces. It may be useful for some sellers to rent storage for their larger items and boxes during this transitional period.