So, you're thinking about selling your home? Now could be a great time based on your situation!
If you have equity in your home, and similar homes have sold for a similar price to what you paid (or more), now could be a great time to list your home.
In Alberta, there is currently significantly more demand than supply of homes on the market, making it a hot seller’s market. We are continuing to see higher than normal sales trends. It is important to look at what is going on in your neighbourhood, and with similar homes to yours.
Deciding to list your house is a complicated decision in usual circumstances let alone if you factor in our current situation in Alberta with COVID still continuing to impact society and the economy. Given this is ultimately a personal decision and can only be answered from your perspective, here is a list of questions you might consider when making the decision only you can make.
1. Are you also buying a home?
When you are selling it is important to understand if you are buying in the same market or not. If you are selling and buying in today’s Alberta market, you will likely make more on the sale but also need to pay more to buy as well, leaving you in a similar financial position. There is currently an excellent opportunity right now for those looking to downsize their home.
If you are buying in a different market, or moving to a rental, you will need to understand the micro-market trends on both the buy and sell-side.
2. What is the home market doing?
In Alberta, Spring and Fall are typically thought of as the best seasons to sell in, however experts are saying that given the current market, the best move is to sell as soon as you are able! Looking at average prices and sales across big cities like Calgary and Edmonton are too generic to extrapolate how that impacts the saleability of your home. Instead, you need to understand what has happened in your neighbourhood. What has sold? For how much? How comparable is this home to yours?
3. How much equity do you have?
To understand your full financial picture, it is important to evaluate how much equity you have in your home. This will tell you how much capital you can extract from a sale and how much the bank will take back.
4. What will it cost to break your mortgage?
This is an important penalty you should be aware of ahead of selling your home. Depending on the contract these fines can be quite hefty and might make a sale a non-starter.
5. What are your costs of transaction?
Touch-ups – This is 100% dependent on the condition of your home. You may decide to do minor repairs – paint a wall, weatherstripping, fix dings in walls (~$500) or major jobs (repairing a roof, resurfacing a floor, electrical, or plumbing work. It is a good idea to get a quote from a reputable Prō for this work.
Photography & Measurements – Professional photos are highly encouraged and measurements are needed if you want to post on MLS. All in, these will cost anywhere from $150-350 depending on the size of your home. If you list your home with Bōde, they will cover the costs of these services. Schedule your free photos here.
Agents– If you decide to list with a selling agent, they will likely charge 3.5% on the first 100,000 and 1.5% on the remainder. There are other options to avoid some of these costs. If you sell to a represented buyer you will also be on the hook for the costs of their agent too (in Alberta they are typically the same cost as the selling agent). Of course, if you sell without an agent, or sell to a buyer without an agent there are significant savings there. People who sell their home with Bōde, save an average of almost 50% of the commissions. Sellers are also more successful in selling their homes than using an agent.
6. What is the current value of your home?
Lastly, it is important for you to determine the value of your home. This analysis is now possible with online tools and a good exercise for every homeowner to go through on a regular basis. Understand your neighborhood trends as well as look at the individual and comparable home sold prices.
Want to sell your home without an agent?
Welcome to Bōde
Bōde has created a marketplace to allow you to get transparent home data, set your price, and list your home on MLS (and 100+ more listing sites). We will advertise your home and walk you through the whole sale process for 1% up to a max of $10K, only when the home sells.
With your free Bōde account, you don’t need an agent – you are completely in charge of your home sale and get to keep more of the money you invested in your home!