Are you wondering whether “selling your home as is” is a worthwhile venture or should you cave to popular opinion and renovate to sell?
Perhaps your home is in disrepair or is no longer structurally sound and you are unable to afford the repair costs. The interesting thing about real estate is it is never stagnant which is why this article will explain that if your home is in Ontario there is a silver lining.
Due to the lack of inventory in today’s market, selling your home as is, is not only possible but for some home owners they could actually profit. You may have heard the stories about homes selling with multiple offers with a leaking basement. The stories are true. While investors are always looking for discounted real estate, right now due to a lack of inventory both investors and buyers are competing for the same properties. As a result less desirable neighbourhoods within the golden horseshoe have now become desirable.
Whenever the government introduces laws, taxes or changes to the borrowing policies it always has an impact on real estate market. Over the last year CMHC has modified and tightened the borrowing rules. As a result buyer eligibility has also tightened. The impact these changes have on real estate are generally felt in the market a year after it comes into effect which is what we are seeing in the market today. In this particular case buyers have been forced to come down market into more entry level markets and this has resulted in a larger pool of buyers competing for the same properties.
As discussed above, changes to government policies impact the real estate market both before and after it comes into effect. In this particular case, the Liberal government has announced they may introduce a foreign buyer tax on homes in the Greater Toronto Area. The mere mention of a tax increase can create a surge in the market as buyers will want to have any and all real estate purchases finalised before the tax comes into effect. Should the Liberals introduce a tax increase with a set date a surge in the market will accelerate up until the day the tax takes effect. After the tax comes into effect, you will then see a sudden drop in the market.
If you find you are selling your home as is and would prefer a quick and hassle-free sale, contact us at