While this topic may seem obvious, there are many reasons why people sell their homes and later regret it. Every real estate agent has a story about a sale that didn’t happen and why it ended up being the right decision for the people involved to not sell. Here are a few reasons that may occur:

Not Financially Prepared

If your plan is to downsize, the profit of the sale should cover the expenses. If you’re upgrading, you’re going to pay for these expenses out of pocket. You should make sure you have saved enough to cover everything before you decide to sell and move. 

Home Loan Restrictions

If you’ve purchased your current home on a bank loan, you will have to follow through with some legalities like obtaining an NOC from the lending bank, and get the original title deed transferred to the new buyer. Do not attempt to sell your house without fulfilling the stipulations along with the tax liabilities. Other than that, if you sell your house within one year of purchasing it on a loan, you’re liable for paying (STCG) Tax which is the tax applicable on investments sold within one year (percentage may vary between 10-30%). 

The Market Conditions

Depending on how the market is performing based on your location will help determine if it is the right time to sell for you. If it’s a buyer’s market, it will take longer for you to sell and it may not sell at the price you want. However if inventory is low, especially in your homes price range it would be a prime time for you to sell. Consult a real estate agent to help you understand your local market and determine if the market is favourable for you to sell.

Condition Of The Property

If you are wanting a certain price for your home and the property is in disrepair or requires some restorations, it may be productive to first do your upgrades before listing your home for sale. 

Buying a dirt-cheap home and spending some money to renovate it can seem like a great idea, but many people are unaware of the amount of effort projects like that take. Weigh up the pros and cons of buying a fixer-upper and present them to your readers in an unbiased manner.

Things to Consider

Do the Math

First add up the costs to renovate the property based on the condition of the house, this should include materials and labour. Next subtract that from the home’s likely market value after renovation, from comparable real estate prices in the neighbourhood. Then deduct at least another 5 to 10 % for extras you decide to add, unforeseen problems and mishaps that have to be dealt with. What’s left should be your offer.

Avoid Major Problems

If the house needs significant structural improvements, many recommend avoiding those properties. Major repairs like plumbing and electrical system overhauls, foundation upgrades and extensive roof and wall work, are usually “invisible” work and hardly ever raise the value of the house enough to offset the cost of the renovation.

Pick Projects That Pay

The ideal fixer uppers are those that require mostly cosmetic improvements; paint touch ups, drywall repairs, floor refinishing - which generally cost much less than what they return in market value. New lighting fixtures, doors, window shutters and siding as well as updated kitchens and bathrooms are also lucrative improvements.

For maximum resale value, remodeling investments should not raise the value of your house more than 10 to 15 % above the median sale price of other houses in your area.

DIY Whenever Possible

It’s usually most cost-effective when homeowners do most of the work themselves. If you’re not the hands on type, be prepared to devote a considerable amount of time to supervising contractors. 

Line Up The Money

Most people don;t have much extra cash after making the down payment and paying closing costs, so coming up with additional money to cover repairs or remodeling can be difficult.

For small projects, credit card debt is an option, interest rates are high and the interest isn’t tax deductible, but there are no up-front costs, such as appraisal and origination fees. 

The most popular funding choice for a fixer upper is a renovation loan, either through a home equity line of credit or a mortgage.

Whatever the problem, dealing with problematic tenants can be a nightmare.

Best practices for How to Deal with Terrible Tenants

1. Be calm, objective and rational

2. Keep written records of everything

3. Teach tenants how they should treat you

4. Try to get your tenants on your side

5. Ask the terrible tenants to leave

6. Begin the eviction process

7. Hire a property manager

Screening tenants is the first and best defense against bad tenants. When you’re finding a tenant, include their appearance (cleanliness), ask direct questions, examine the application, make sure everything is filled out correctly and up to your standards. 

When managing troublesome situations, there are a few rules you should follow:

1. The first rule is to follow the law - there are certain rights that govern landlords and tenants that you need to be familiar with. You can even contact a lawyer before you take any actions.

2. The second rule is to abide by the lease - common offences like noise and other disturbances, are typically included in most leases, and everything else you and the other party have agreed upon.

3. The third rule is to do what is in the best interest of your tenant base - protect and defend the interests of a greater tenant group.

House inspections can help place a value on a home and identify any problems that need solving, but they’re not for everyone. Below we will present the pros and cons and, as always, help you come to a decision as to if investing in a home inspection is right for you.

PROS

A home inspection will ideally ensure the home is in good condition and that there are no hidden defects.  After the inspection is complete, the inspector will provide you with a copy of the report for review. Home inspections are designed to give you an overview of the current state of your property as well as highlight any future problems. Peace of mind has no price, and if you pick a competent inspector to do the job it would be well worth your time and money.

CONS

Be aware of the limitations in a home inspection. It is meant to uncover the majority of the problems that are wrong with a property or that may become a problem. Anything that does not leave a visible sign of an issue, a home inspector may not always be able to pick up on. Not everything can be predicted by your home inspector. They are also not experts on any one particular part of a home, so if you want to know the specifics of the wiring, plumbing or structure of a house, it may be worth it to go to an expert. 

It is going to depend on your particular situation and what you are looking for in an inspection. If you want a general overview of a property, then a home inspector is what you’re looking for. If you want to know the specific condition of the furnace or plumber - hire a professional plumber to come out or an electrician to assess the condition of the wiring of a house. It’s up to you to decide how far into inspections you want to go.