Wednesday, October 12, 2022 / by Curtis Singh
Blog post: Selling & buying in a downturn.
When buying your family home, as long as you buy and sell almost simultaneously under similar market conditions, then the state of the market conditions is almost irrelevant. Greater Victoria is currently in a downturn market which allows buyer's more time to search, more inventory to select from and more ability to negotiate terms on a contract.
Due to Greater Victoria's usual low inventory fast pace market, it can be difficult for a homeowner wanting to make a move since the properties they would like to purchase sell so quickly. With the downturn in the market, there are a few possibilities that a homeowner looking to make a move can take advantage of.
Scenario 1 - Find the right home, then list - Low risk - A seller can have their current home ready and prepared to list. The seller can then find their next home, negotiate all terms and lock in a conditional contract to the "sale of buyers home" for 30-60 days. Once they have this in place, the seller should list their home immediately with the best listing professional possible to ensure a sale at the best price in a timely manner.
- Pros: Very low risk, guarantees the transition from sold property to purchase property.
- Cons: If it takes time to sell your current home and you have already negotiated your purchase, you may loose some market value your property sale in comparison to your purchase.
- Pros: Low risk, simple transition from sold property to purchase property, no market value loss.
- Cons: This usually only works when a property to purchase is available.
- Pros: A better price can usually be negotiated with fewer conditions. A purchaser will also be able to take advantage of downward prices if purchasing after the sale of their own property.
- Cons: Medium risk factor being not able to find a property in the ideal timeline.
In Greater Victoria, a buyers market could be the ideal time to sell because a seller has more time to find a property with much more selection. Greater Victoria's market is notorious for low inventory and very low days on market making it very challenging for homeowners looking to sell and buy.
In all cases, we recommend talking to a neighbourhood specialist from the Executive Group to give you the most up to date information so you are well educated on the best steps to take. Depending on market conditions, whether you should sell in a month or sell in a year, it is best to get informed by a local professional. Your investment is our top priority, please contact us if we can be of service.
By Curtis Singh