SELLERS

It is not often that investors wish to sell their real estate in Calgary, as it generally provides them with a source of income and is an appreciating asset. When investors want to jump to a different property investment opportunity or to a larger project with a property investment trust, for example, they sometimes will liquidate assets in order to obtain the capital to make that jump. Sellers would do well to keep in mind the following real estate tips when selling their properties, investment or otherwise.

Factors that directly and indirectly affect sellers’ decisions, profits and salability are:

1. Location, Location, Location
2. Timing
3. Interest Rates

Location, Location, Location:

Location is important for various reasons when property investment options are being considered, probably most important of which is the resale potential. Investors can be lured into an investment that is probably in many aspects an excellent buy, only to find out later that it does not have much resale potential. This can become an especially tricky area to navigate when maximizing ROI is the goal, as a real estate investment that is an excellent price initially may or may not sell for a much higher price and location can often be a key determinant. There are a variety of factors that affect resale potential and location is arguably the most important. In addition to the location, the amenities that the location offers, as well as nearby future developments and proposed projects are all very important to consider. A real estate property’s proximity to schools, hospitals, parks, rivers, lakes, etc. (proposed or existing) can boost the potential selling price by a significant degree.

Timing:

As with many things, timing in real estate investment is very important to consider in both selling and buying. Savvy investors understand the importance of listing their properties at the right time in order to capitalize on market trends. In addition, certain times of the year are better than others to sell real estate in and timing the sale properly can mean a difference from anywhere between $15,000 to $1,000,000.

Interest Rates:

Interest rates and trends in the lending and banking industry tie in with timing the sale of an investment; timing and interest rates should be considered separately, however. It is important for investors to pay special attention to the interest rate fluctuations and announcements by the Bank of Canada and the top 5 Canadian lenders. Selling a piece of real estate that is locked in at a low interest rate can add a great deal of value when current interest rates are much higher. Alternatively, if interest rates are trending downwards and an investor owns a property at a higher interest rate than the market is offering, it is important to either sell before the discrepancy becomes too large, or renegotiate with lenders and lower the interest rates before the sale.