Planning on putting your home on the market for sale? Unless you're going to be targeting contractors and investors for a fix-and-flip, you might want to consider the condition of your home before it hits the market.
Why? Most buyers will need to take out a mortgage when they purchase a home. When a lender decides whether or not they should help finance a home for a buyer, more often than not an appraisal will be required to determine the condition of the property. If there are certain issues and problems with a home that goes against what lenders permit, not only can this delay closing, it can also kill the deal. Buyers may also want a big deduction in the home price to pay for repairs.
It's a good idea for home owners placing their houses up for sale to understand what major factors lenders tend to look for when determining the overall condition of a property. Such items usually include:
- Roof - Any major deterioration or leaks
- Windows/Doors - These items should be in proper working order;
- Basement - Any major foundation or structural issues, such as large cracks, can cause problems when trying to finalize a sale on your home;
- Walls - Any signs of water damage or major holes can be a problem. Walls should also be finished on the main and upper levels;
- Repairs - Most repair and renovation jobs should be finished. You don't necessarily have to have trim, but at least ensure all fixtures are in place and are working;
- Heating - You don't have to have a brand new, high-efficiency furnace, but it needs to at least function to keep the house warm;
- Water - Proper flow of water should be in place, with the absence of leaks;
- Hazardous Conditions - Certain items, like lead paint, radioactive material, landfill, radon gas, etc. should NOT be found on your property.
Of course, your home ideally should be inspected by a licensed home inspector before any sale on your property is finalized. Not only is this beneficial for the buyer, but also for you, the seller, to help provide some peace of mind knowing that there are no major problems with your home that will inevitably cause the buyers or their lenders - to back out of the mortgage financing Ontario. Many homeowners find it makes more sense to do home renovations and repairs before they put the home on the market. Often, this will cost you less than giving a discount to buyers, and will make your home more attractive to a larger group of potential buyers.
Speak with your realtor to determine what should be done before you list. The earlier you start preparing to put your home on the market, the better.
