In Canada, the desire to own a home especially in the city of Toronto has been hit by a roadblock of high rents and high prices. The supply is low, and the demand is high. Other than that, with a lot of condos being made, the prices of them have been worrisome. Mayor John Ford did promise controls in price and rental, and things are becoming a bit stable.
Those who own homes need to know that they must maintain it and keep it in good shape (whether it's an apartment, a condo, or a home). They should also understand the factors that can bring down its value. Hence here are some factors they should understand that can decrease a home’s value:
A rise in mortgage interest rates
Mortgage interest rates are a monumental factor for buyers and sellers when they are deciding on buying their home. High interest rates will make buyers wait because their monthly carrying expenses will be higher.
For sellers, they might need to decrease the price of their home so it can be listed. Why? Because high prices will hardly draw any prospective buyer. The market in Toronto has been fluctuating consistently. Hence sellers should work with a Real Estate agent who understands their local market well and can help them navigate in buying or selling in such a market.
Comparable listings and short sales are a cause of concern
A neighborhood having short sales or foreclosures will cause values of surrounding properties to be reduced by quite some margins. If more units or homes nearby are being listed, then less the chances are of any home there getting sold.
Buyers will look at comparable listings in the area meaning that sellers will be competing with more sellers and need to be hence competitive with their pricing. Real estate agents will perform a comparative market analysis to ensure that their property is listed at the correct price and will also implement a well-placed marketing strategy selling your home faster.
Enhancing the property’s appeal
Also known as curb appeal, it is an important factor when it comes to selling the home because it is the first impression of sorts sellers gives to potential buyers. Sellers selling their home should ensure that everything in the house is safe, works perfectly, and looks presentable.
For those having homes, they should check the garage gates, fences, gates, taps, hoses, and other things to see which ones require repair. Once this is complete, they should be clean to ensure that they are worthy of being seen.
It is unbelievable that all of this can create a difference when it comes to the property’s appeal. A coat of fresh paint to the porches, doors, and mailbox helps a lot.
With winter coming, sellers wishing to sell homes during the holiday season can do the following:
- Raking up leaves.
- Removing fallen tree branches and any sticks.
- Adding fresh mulch to garden beds.
- Ensuring no stray animals are there.
- Trim the hedges or branches of low-lying trees.
- Cleaning the drains and gutters.
Conducting repairs in the home’s interior
The home’s interior is the main selling point for most buyers. Sellers should ensure that the finishes and furniture appeal to a broad buyer base. If the property appeals to a narrow market segment, then it can be difficult to find the right buyer.
If the property has a lot of family photos, it can be hard for potential buyers to imagine themselves being a part of the house. Staging the property for selling helps raise its value. Working with a real estate agent again helps a lot and in matters of staging, such assistance is valuable.
When it comes to repairs, staying on top is important because even though sellers may not see potential issues when they are selling their homes (mold in some areas, plumbing issues, or need for a new HVAC portion). Things not repaired can chop down a good value of the property’s price.
It is wise to hire a professional home inspector to complete an inspection of the home. This will give them time to finish any necessary repairs before the property will be listed on the market. This will not only help catch a good selling value but also attract prospective buyers easily.
Rankings of schools is a factor worth considering
Homebuyers who are either newlyweds planning to have children or having children are often inflexible about the prospects of living in an area having top-notch schools. With reputable schools helping add value to both the area and the homes in it, parents are willing to spend considerably to help their children obtain a quality education.
Parents who live in an area having a low ranked school can visit it and ask them about any extracurricular activities as well as after-school programs they have (which can be a plus point for them). For sellers, they can add this as a plus point when they sell their home.
The area’s locale and proximity
Often at times, when people are purchasing a home, they consider factors desirable for their specific circumstances and situation. This could include things like proximity to amenities, transit, schools, hospitals as well as major expressways or even the highway. For instance, those who commute to work daily each morning would prefer proximity to either a major expressway or the metro train.
On the other hand, noise pollution from traffic could be a deal-breaker for some people. No one should rush to buy a home. They should take time to research the neighborhood for any construction projects coming up before making the purchase. This helps get a better idea of future developments and whether or not it will affect the property’s value. You may concern a reliable real-estate agency that deals in Toronto condos for sale when looking for a home because many realtors out there aren’t the best option to go for.
The area’s economy – how much does it count?
The overall health of the economy is directly related to Real Estate. Economic factors affecting the home’s value could be a change in the area’s employment, conformity, supply and demand, and the like. An economic downturn in that area
If the economy of that area softens, then it can create a domino effect. If the market fails, then residents could be forced to sell their homes causing a rise in inventory levels and putting downward pressure on pricing.
Conformity is important because those who live in a neighborhood of single-family homes and just a few blocks ahead, an apartment or an office building is made. The effect on the prices of these homes will be negative as the land use is not compatible with that of the area.
Regarding the supply and demand aspect, a rise and demand with a fall in supply (or remaining stable) keep property prices either stable or on the rise. With a drop-in demand and a rise in supply (or stable), the value of the property falls.
Conclusion
Keeping all these factors in mind, sellers should ensure that they work with an experienced real estate agent who is aware of all market conditions. The same goes for buyers checking for homes in their desired neighborhoods.
Such helps save time spent in mundane activities and helps both buyers and sellers obtain market insights in the best possible time.
