As We End 2024 And Look Forward To 2025

If you’re thinking of maybe selling this month’s Real Report is for you. With interest rates on a general downward trajectory and the GTA/Toronto real estate market heating up, here are 10 things you can do now to be ready to sell in 2025: 

Pick Your Agent:

It’s never too early to hire a REALTOR and benefit from discussing your selling strategy together. 

Set Clear Goals and a Budget:

Its always good to start with the end in mind and work backwards: what’s your ideal moving date? What needs to happen between now and then? If you want to move in June, you’ll likely need to list your home for sale in February/March. Create a detailed budget, including projected costs to sell and buy (if you plan to buy again) and estimate ongoing carrying costs. 

Know your Numbers:

Talk to your bank or mortgage broker about mortgage portability options and/or mortgage penalties. Sometimes they may even blend rates so you don’t have a penalty.  The conversation with your lender is critical and not a step you should put off or skip. If you’re selling an investment property, talk to your accountant to understand any tax implications.

Declutter:

Start the decluttering process now. Rent a storage unit if you have to and begin packing non-essential items. This makes your space look larger and more appealing to potential buyers. As a bonus it gives you a head start on moving. Win…Win!

Repairs:

Your agent should be bringing in a Home Inspector for a Pre-Inspection.  This will highlight any issues that a buyer may use to lower the price during negotiations.  So now’s the perfect time to take care of all the little fixes you’ve been putting off. While you might not notice your wobbly front porch railing anymore, I guarantee that the buyers will see it. And for everything they see that hasn’t been maintained, they’ll assume there are ten more things they can’t see – and they’ll either move on to another property altogether or lower the price they’ll offer for yours. Get it done now while you aren’t pressured for time. 

Updates:

This is where your Agent will really help you spend wisely.  New paint and lighting freshen up a tired space, but be careful not to over-improve your home in preparation for the sale. Please, talk to your REALTOR before you spend any significant money. My job is to help you put, and keep, as much money in your pockets as possible. To many times I’ve seen home owners spending thousands of dollars in areas that will not improve the selling price of their home.  Don’t be those people.

Investment Property:

If you’ve owned your rental property for a number of years sow’s the time to get familiar with your obligations under Ontario’s Residential Tenancies Act. Its changed over the last few years.  Namely you now have to pay the tenant when they move out.  If you’re unfamiliar with this reach out and we can go over what you need to know.

Showings with Kids and Pets:

Showing your home to prospective buyers is inconvenient and impacts everyone in the home.  To reduce the stress its important to make a plan to reduce the impacts on the kids and pets. Can you time your sale with a pre-scheduled vacation? Should you plan to board the pets? No….you can’ t board your kids 😊

Photographs:

If you have pictures of your gardens or patio etc in the spring or summer when everything is in full bloom is great to use in the listing during the cold of winter.  Make sure you give them to your Realtor to use.

Build a File:

Compile a digital folder with all home improvements, major repairs, and renovations you’ve done over the years. Include before and after photos, receipts, and warranty information. We may not use the before and after pics but sometimes they are so dramatic it helps justify the asking price.

What if You’re Thinking of Buying….

• File Your Income Taxes: You won’t qualify for a mortgage if your taxes aren’t up-to-date.

• Credit Score: You can check your credit score online with Equifax or Trans Union.  Improving your credit score can help get better mortgage rates.

• Set Realistic Goals: Does what you want to buy exist for the price you want to pay? Now’s a great time to get familiar with what’s happening to prices in your target neighbourhood.  Your Agent can help you understand the current market and find what you’re looking for.

• Get Pre-approved For a Mortgage: Can’t stress this enough. Make sure to ask your lender about any mortgage portability options with your current mortgage. Nothing worse than finding your dream home and then having the bank say you can’t afford it.

2025 will be here before you know it and there’s a lot you can do now to be ready to sell in the winter or spring.

Inflation Has Ticked Up Slightly in October

And that should trigger the Bank of Canada to continue its downward trend of interest rates on December 11th.  Now, lets face it, most people are not looking to buy or sell a home in December for many reasons.  The weather is getting bad, people are busy with Christmas parties, family and friends and just getting ready for the Christmas season.  However, did you know that the cheapest time to buy a home in the calendar year is…. you guessed it…. December!  

So, we are in the normally lowest priced month of the year, and we will be getting another interest rake hike.  So, who benefits the most from this situation.  

First Time Buyers:  

The prices will only start going up as we get a few months into the new year so now is the cheapest time to buy.

Upsizing Buyers:  

If you bought your first home and now you need/want a bigger home because you’re having kids, or your kids need more space, etc. those bigger home prices will not be lower than they are now (barring something unforeseen in the economy etc.)

Cottage Buyers.

With the return to the office and less working from home there has been a big wave of cottages being put on the market.  This time of year, there will be less competition so if you want a cottage this is the best time of year for a deal.

In the January Real Report, I will cover predictions for what the market has in store in 2025, trends and timing depending on what type of Buyer or Seller you may be.

Final Thoughts...

As always if you have any questions, you wonder what your home is worth, you would like a recommendation for local contractors, anything…please feel free to reach out and I would be happy to help.

Merry Christmas to you and yours and I hope you have a blessed and safe Christmas season.