Real estate rarely comes down in value; and yet, the pandemic has left an indelible mark on the real estate market. Some people acquired properties at inflated prices due to the rise in demand, bidding wars and this period’s particular conditions.
At the time, it was impossible to predict if these houses would retain this value. However, it now seems evident that certain of these properties were purchased at prices exceeding their actual value. Are you in this situation and want to sell? A real estate broker can guide you through the different steps and help you get the highest possible price, under the best possible conditions.
Have Your Property Professionally Appraised
The first step is to obtain an objective appraisal, usually conducted by a real estate broker. They will consider current market trends and your home’s characteristics to give you a precise idea of the price you can reasonably ask for.
You will then be able to see how much your property has declined in value (as the case may be) and get over the initial shock. Above all, don’t blame yourself: you made the best decision according to your circumstances at the time. No one can predict the future!
Consider the Following Options
So, what can you do if you did in fact purchase your home a few thousand dollars more than it was actually worth?
- You could wait to sell for a few years to make up the loss in value. It’s surprising what a difference only two or three years can make.
- You could list the residence at the price you paid for it and hope you find a buyer. Who knows, someone might just fall in love with it! However, this isn’t a very viable option if you’re in a hurry to sell.
- You could sell at a loss. This decision requires that your head and heart be on the same page. Ask yourself all the necessary questions. For example, are you really that unhappy where you’re living? Can you afford such a financial loss?
- You could rent the home instead. This might constitute a worthwhile recourse if you’re facing significant losses or if the market isn’t moving as expected. Then, in a few years, you could try listing it again.
- You could likewise rent to own. This option can take many forms. In short, it involves offering your tenants the possibility of putting aside a portion of the rent to serve as a down payment towards the property’s purchase at the end of the lease. This type of transaction (quite popular in Ontario) appeals most to buyers unable to save for a down payment.
So, which scenario do you feel most comfortable with? Don’t hesitate to contact a real estate broker to gain a clearer view of your situation. As an expert, a broker is in the best position to guide you, and they will assuredly make your satisfaction their top priority!
Keep an Open Mind
If you decide to go ahead and put the home on the market, be prepared to adjust your price expectations as the weeks go by, based on your broker’s recommendations. For example, if you want to sell quickly, your broker may propose a strategic adjustment to ensure your property attracts buyers and so expedite the process. Additionally, be flexible during negotiations and be open to offers that may not seem ideal, but that could seal the deal. Finally, take comfort in the fact that you will buy your next house under current market conditions, that is at a price that reflects its true value!
We understand how disappointing it can be to realize the house you purchased has declined in value. Every situation is unique, so please don’t hesitate to contact a real estate broker to obtain personalized advice. Good luck!