December 8, 2022 | Selling
How Long Does It Take To Sell A House In Toronto?
Are market conditions on their way to recovery?
Whenever we see a major market change or downturn, there is always an adjustment period. In 2018, when the government introduced the Stress Test to cool the market, there was an instant slow down and price correction which lasted about 6 months. This current downturn has definitely felt more like a crash with a significant price price drop in detached and semi-detached homes. However, we’re seeing various signs that the current adjustment period might actually be almost over. In the last few weeks, the media has been reporting some positive outlooks for Toronto real estate, which many may have missed.
The biggest sign of positivity comes from The Bank Of Canada and the two recent progressively smaller interest rate hikes (50 basis points instead of 100). It’s also important to note that in previous rate hikes, the bank make it clear that it would continue to raise it’s trend-setting rate until inflation showed signs of stability. The banks language shifted with the most recent hike on December 7, stating that further rate hikes are not a guarantee and Government Council will evaluate further before increasing rates again, clearly indicating a positive outlook for the coming months. This type of confidence in the market will definitely entice more buyers, which will likely stimulate the market all over again.
Thinking about selling your home soon? Check out these other blogs to help you get started!
- When Selling Your Home It’s Impossible to Time the Market! Or Is It?
- Negotiation: Why You Need an Owl, Not a Pit Bull
- The Cost of Selling a House in Toronto
The waiting game might be over.
With some fresh positivity in the market, we might be seeing rise in activity, come spring 2023. If you are contemplating a sale, but have been waiting for the current market conditions to improve, this is the time to start getting your home ready for the spring market. There is a lot of prep work going on behind the scenes, well in advance of the For Sale sign’s big debut and the spring real estate market typically starts in February (YES, this is true!), leaving little prep time if you leave the action items until the new year!
Timing the Toronto Real Estate market is virtually impossible, but to maximize a home sale following a typical market cycle is your best bet. We often see the market peak (AKA – highest home sale prices) in mid to late February which is exactly what happened in 2022. Are we psychic? Not really, we just know this business inside and out. February was the peak month for the entire year, and this is not unusual. This is a trend we can count on, if market conditions do improve in early 2023.
How long will it take to prep your home for sale?
To avoid feeling stressed, and rushing through the process, start now with a clear and organized plan. Generally, prepping a house for sale is more than just a coat of paint and a window washing. It can take 2-3 months, especially if you have kids, trust us, we know! Here are a few steps you can take now to alleviate the stress and pressure
1) Declutter
This is likely the most difficult and time consuming task which is why we’ve placed it at the top of our list. Start here. It is hard to hear that your family photos and souvenirs are clutter, but to the potential buyer who is touring your home, they truly are. Take these cold winter days and do a thorough decluttering. Assess your furniture and decide what stays, what goes and be ruthless. Do you really need that lazy boy from 1984 in your new home? Are you really going to repurpose that old dresser into a bar? Maybe, maybe not. If you aren’t sure, or have been meaning to do it for over a year, consider selling or storing it for now. A good declutter doesn’t necessarily mean selling or donating all of your favourite things, consider renting storage space for these items. Often we find that when things get put into storage, they are easier to part with down the line. With this step complete, resist the temptation to buy more things! A well-decluttered home is the perfect canvas for professional staging. As we’ve said many times before, professional staging is an integral component in maximizing the sale price of a home, so declutter now and declutter well.
2) Fix it up!
Look around, what do you see? A few dings in the wall, scuffed hallways, leaky faucets, dingy paint? Hop to it! These are very easy fixes that will have an enormous impact on the look and feel of your home. Quick, indoor projects that can be accomplished in a weekend. A fresh coat of paint goes a long way in sprucing up a living space. A good rule of thumb is to choose neutral colours, and steer clear of any bright or very dark colours that might not be to everyone’s liking. A neutral palette will work with any furniture and decor you may have as well as any staging that will be done when it comes time to list. Patch up those dings and chips, replace leaky faucets and your home will feel new again.
Patching up walls and replacing leaky faucets is easier than it sounds. Any home improvement store will be happy to help with the how-to’s of these inexpensive, easy fixes. In addition, take a look at switch covers, often these get cracked with wear and tear, but a quick replacement is an easy and cheap improvement Replacing outdated light fixtures with something more modern is also an easy way to really change the vibe of a home.
3) Get a Home Inspection
If you have an older home, its highly recommended to get a home inspection in the early stages. This will give you a better idea of whats needed, what you can do, and what will require professionals. This also mitigates the chances of finding a nasty surprise down the line that will impact whether your home is listed at the right time or if you have to wait for some major home improvements to be completed. We have seen this many times before, a beautifully staged, cleaned and painted home ready to hit the market, only to find out it has knob and tube wiring, asbestos or leaks. These are challenges that will definitely scare off some potential buyers. Knowing about them ahead of time will help you determine if you are able to fix them before sale. Understanding the full scope of work will also help with setting a listing price and negotiating the sale. Prior to listing, your realtor will get a fresh home inspection, which will be much cleaner if many of the problems have been fixed in advanced.
Looking for more tips to prepare your home for sale? Read our key steps to listing a home for sale right here.
Are you buying AND selling?
Which step comes first? The truth is, both steps should take place at the same time. The biggest mistake most people make, who are looking to buy a new home and sell their existing one, is focus on each of of these transactions separately. In reality, the buy and sell should work in tandem because the goal should always be to buy and sell in the exact same market. For example, if you made the personal choice to purchase a new home first and are actively shopping for one, you also need to be preparing your current home for sale. Your current home should be listed within 10-14 days after you successfully purchase a new home to minimize any fluctuation in the market. This way whether the market is up, down, or sideways, both transactions are happening in the same or a similar environment.
Get more info about selling your home in these blogs, next:
- The Real Estate Debate: Should I Buy First or Sell First?
- Winter To-Do List: 6 Home Improvement Projects for a Spring Sale
- How to Successfully Price and Sell Your Home
- Questions to Ask Your Real Estate Agent
Hire a Realtor early
Once you’ve started the home prep process, it is highly recommended you get a home improvement and staging consultation from your realtor. Having a pro come in early to assess your living space will take the guesswork out of where to begin and where to allocate your budget for this endeavour. If all of this sounds daunting, we have one last tip that truly is a game-changer: Hire A Realtor Early. Don’t waste time prepping your home for sale without first finding the right realtor. An experienced realtor will be able to guide you through the home prep process as well as recommend the right tradespeople and home inspectors ensuring you aren’t wasting time focusing on the wrong areas. A good realtor will know the market you’re buying and selling in, know the target audience and will know exactly what sells, what buyers want and what is a major turnoff. Your realtor is your partner in this very personal and occasionally stressful journey.
All these steps can and should undertaken in the winter months leading up to the busy spring market. Selling a home is a process, both physically and emotionally. The earlier you can get organized with these tasks, the easier the listing efforts will be.
If you have questions about selling your home in today’s market, give us a call at 416-909-1602 or email us at hello@getnested.ca.
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