The housing market has been booming for a while now. Even though properties are getting snatched up quickly, sellers need to prepare carefully. So before you put your home up for sale, we have some handy tips to simplify the process and financial advice to prepare you for what comes after.
1. Showcase your space
Before putting up a "For sale" sign in front of your home or cottage, give the whole property a good once-over to make sure it looks its best.
The goal is to make your property look as valuable as possible, both inside and out. A great first impression makes all the difference; it's often the first step toward a quick sale at the right price.
Tidy up
If you collect objects of all shapes, sizes and colours or put all your prized possessions on display, remember: You don't want to draw attention to the wrong things. Put these objects in boxes or in storage. Decluttering will make rooms appear more spacious and allow visitors to imagine how they would decorate.
Expose your walls
Take down frames, photos and artwork. Expose those walls! It creates a blank canvas for potential buyers to paint a picture in their mind's eye. The last thing you want is busy walls that make spaces feel cramped. And be sure to patch any holes when you pull out nails from the wall.
Light up
Do you have the right lighting? Using dimmers can help create the best lighting for each area and set an ambiance that draws people in. Even in the daytime, it's small change that goes a long way toward leaving a glowing impression.
Think pristine
Painting your walls white if they were coloured or had wallpaper gives your home a clean finish that makes it look more valuable. The same goes for rest of your property: A crisp, clean look gives potential buyers the feeling of endless possibilities.
2. Get an accurate picture of your finances
How? By contacting your advisor, sooner rather than later. Before you sell, it's best to know exactly where you stand financially.
We talked to Angela Iermieri, a financial planner at Desjardins, who told us about a few questions you should ask yourself before selling your home:
1. Where are you moving to?
2. What will you do with potential profits from your sale?
3. How will selling your home impact your finances?
"It pays to ask yourself these questions beforehand," Angela says. She believes it's a smart idea to meet with a financial advisor to get a clear picture of your finances. "It's your chance to talk about your plans once you sell your home."
Angela also discusses penalties you might incur if you're repaying your mortgage ahead of time to make your sale.
When you're able to plan your sale well in advance, you can set the term of your loan accordingly. For example, when renewing your mortgage, you might want to choose a shorter term or an open loan—as opposed to a closed loan—to minimize penalties you might incur for selling early.
"And that's not all: Your meeting with your advisor is a good time to find out if you qualify for a future mortgage, especially if you're interested in a home in a higher price range."
Angela points out that selling a secondary residence like a cottage or country house or a rental property like a triplex can have tax implications or other financial consequences—all of which can add up fast. That's why you should bring it up with your advisor, who can map out the right strategy for you.
Selling your home is an exciting time, but it's no simple task. Your financial advisor has the advice you need to not only make it to the finish line, but to do it with peace of mind.
