© Joe Lanman
If you are trying to decide whether to buy a house, just looking at fluctuations in recent prices has limited value. Just because home prices have fallen a lot in the past several years, does that mean real estate is a bargain now? It's hard to find a clear answer to this question because it depends on how overvalued prices were in the bubble, and that's difficult to determine.
To get a better idea of when is the best time to buy, you should look at metrics like the ratio of household income to home prices. This ratio was stable for many years, and then it shot way up during the bubble. This indicated that too many people were buying more house then they could afford. Looking at the ratio today shows that it has fallen back in line with historical norms in most parts of the country, suggesting that prices have likely bottomed out and it is a good time to buy.
Analyze your reasons for selling a house before you spend money on repairs or mark dates for an open house. Tips by about.com will help you in selling a house smartly:
© leighblackall
Why: Is selling a house and moving elsewhere you reason for selling? Are your reasons for selling your house a result of a long thought process? Avoid selling a house in haste.
Buying a house: If buying a house in a different locality is your reason for selling a house you are currently living in, check out other properties and make sure you really want to move.
Real estate Agents: Contact a number of local real estate agents and ask them to give you a thorough report of what they will do to market your house. They can help selling a house quickly and get good price for it.
Selling a house in Canada is favorable considering that home prices are still up. But benefiting from selling a house requires setting a sale price accounting for:
© Casey Serin
• Agent fees: Real estate agents and Buyer's agents usually share 3% to 7% of the selling price.
• Lawyer's fees: lawyers charge $500 in legal fees. Additionally, registration fees and related expenditures add up to another few hundred. Moreover a sales tax is chargeable on the legal dealings considering the locality of the house to be sold.
• Bank fees: If the house is not fully paid off, selling a house requires paying a bank fee of $270 to discharge the mortgage.
• Utility and property taxes: All property and utility taxes need to be cleared by the seller before selling a house. Selling a primary residence helps evade capital gains tax, however an income tax on half the gains of the sale of an income property is payable to the government by the seller.