In a recent article by Global News, you may have read that “home prices shot up $60,000 in Kitchener-Waterloo last month”. Naturally, you may be asking yourself the question, “Should I sell my condo?” And although it might be tempting to go out and sell your condo right away, let’s have a look at some things to consider before you sell your condo.
Should I sell my condo?
Should I sell my Condo? Things to Consider:
1. Is the Real Estate Market in your Favour?
General Real Estate Market:
According to the CREA, “the number of newly listed properties dropped by 13.3% from December 2020 to January 2021”.
2020 was certainly a seller’s market, and it is predicted that 2021 will likely continue to be so. Check out this article from Housingwire.com, It offers more insight into the predicted real estate market of 2021.
Local Real Estate Market:
Although the general real estate market favors the seller, you need to consider the statistics for condos in your local area. According to kwrealestatenews.com, “The average sale price [in January] for an apartment-style condominium [in Kitchener-Waterloo] was $383,196 for a decrease of 1.4%.
Although that may not seem like a significant decrease, you may want to wait until there is an increase in condo sale prices. Keep in mind that, if the inventory of condos in your area is low and the demand is high, then sellers have the advantage and can set their condo at a higher price.
Furthermore, although spring is usually a good season to put your condo up for sale, check with local real estate agents to find out what month is likely to attract the most buyers and bring you the most profit.
Know when the real estate market is in your favor.
2. What is your financial state?
Questions to Ask Yourself:
Is your mortgage, the insurance, utility bills, taxes, association fees, upgrades and the general maintenance surrounding your condo causing you financial strain and emotional stress?
Are you spending more than a 1/3 of your income on housing costs?
Are you dipping into your savings here and there?
If you answered yes to these questions, you may be better off selling your condo and finding something that better suits your financial and lifestyle needs.
Are you barely making ends meet? Perhaps it is time to sell your condo.
3. Consider your equity
What is Home Equity?
Home equity is basically the difference between the value of your home and the remaining amount you owe on your mortgage.
According to thebalance.com, “keep tabs on your equity and where you stand. Take action early if you see things heading in the wrong direction, as it could help prevent financial loss when you’re ready to sell.”
Whatever your home’s equity is, remember that you have to subtract the cost of selling your condo (realtor fees, closing costs, taxes, etc.) from it. Depending on your home equity and the cost of selling your condo, you may or may not want to sell.
If you owe more on your condo than it is worth, it is a sign you should wait to sell. If you must leave your condo, consider renting it as a way to build equity.
If you still owe more than your condo is worth, wait to sell it.
Has your lifestyle changed since you first purchased your condo? If so, how? Do you now have a child with another one on the way? Have you changed jobs?
What are the emotional attachments you have to your condo? Do you have any health issues to consider? Where/when do you plan on retiring?
Life can change drastically at any moment. The current pandemic has reminded us all of that.
Do your research, find a trustworthy real estate agent, and be confident in your decisions. The real estate market is always fluctuating, so it is better to ride the waves than fight them – in other words, if the market isn’t favoring you, wait until the market turns.
Talk to a Real Condo Expert for advice before selling your condo.
There are lots of factors to consider before selling your condo. With expert knowledge of the KW real estate market, a Real Condo Expert can help you answer the question of “should I sell my condo?” If you do decide to sell your condo, Real Condo Experts will continue to provide honest and trustworthy service throughout the entire process! Check out the testimonials below for proof.
We found Jason very knowledgeable about real estate. The best part was how helpful he was. He was always ethical and honest in providing advice. We have reached out a few times since selling our home previously, for advice and Jason was always quick to assist us. The service KW Listings provides is solid and I highly recommend them! – Sherry Chisholm-Kihut
The decision to sign and list with Jason was easy as we appreciated his professionalism and obvious knowledge of the current market. – Ryan M.