What to consider before you move from a condo to a house
Buying and selling can be expensive with land transfer taxes, legal fees, real estate commissions, utility set-up costs, moving costs and more to consider. If you are going to spend all that money, make it count. Break down the reasons why you are moving and what features you need to have in your new home.
Here are 7 Things Parker Group wants you to consider before making the big move:
1) What is your long term plan?
Are you looking for your forever home or is this just a step up on the real estate ladder? How long are you planning to live in this next home? You should also consider where you are in your life, if you need space for kids or aging parents, and important details on daycare and schools if required.
2) What do you currently love about your home and what is it lacking?
Take stock of the features of your current home. We recommend making a wish list of all the things you want in your new house and then ranking them from can’t live without to willing to compromise. Your new home may not check all the boxes but make sure it checks the important ones.
3) How important is the neighbourhood?
How do you live in your current neighbourhood? Do you love the bustle of the city or long for quiet streets and a large backyard? Often this is something you may have compromise on, especially if you are seeking a larger home or yard.
4) What kind of homeowner are you?
Is your list of things to do around your home long or short? Have you kept up with repairs and maintenance or do you keep procrastinating? Buying a newly built, newly renovated or a townhouse maybe best for owners who are not hands on.
5) What is your budget?
The last thing you want to be is house poor? How much additional mortgage can you carry? Remember, a larger home also means higher utility, taxes, and maintenance costs as well.
Your primary residence is one of the smartest investments you can make because your equity grows tax-free. With the current mortgage rates, you can borrow an extra $100,000 for under $500/month.
If you will be depleting the equity in your current home or will be struggling financially to afford a new house, you might want to wait. One way to prepare is estimating how much extra your new mortgage will be and to start saving that extra money now so making those higher payments will habit when the time comes. Putting that extra cash on your current mortgage and building more equity will help.
6) Should you buy or sell first?
There are two things to consider.
Where do you currently live? If it is downtown in a great building or in a trendy neighbourhood—your condo should sell very quickly. If you are in a less demanded building or area, selling may take longer and we would encourage you to sell first. The second thing to consider is whether you could afford to carry both mortgages if for whatever reason your condo is not sold at the closing of your new home.
7) What do you need to do now to be ready to sell your current home?
We recommend that you call us— of course, talking with your realtor and going through the house with them is the first step. We can help you create a list of things that need to be done and a plan of action moving forward. If you are working with Parker Group, we can take of the pre-list improvements needed for the home including repairs, upgrades and painting. We will either hire one of our preferred trades people or pick up the paintbrush ourselves to help get your home looking the best it can.
If you have any further questions about making the transition to a house, please email us at [email protected].