Assisting your elderly parents in preparing to sell their house can pose challenges, particularly considering the physical and emotional strains they may face. Yet, with patience, effective organization, and unwavering support, you can facilitate a seamless and stress-free experience for them. Here are a few helpful tips to aid you in helping your parents prepare for the sale of their house:

Initiate a conversation with your parents regarding their motivations for selling their home, and make sure to genuinely LISTEN to their thoughts and concerns.

Gaining a clear understanding of your parents' motivations for selling their home is crucial in providing them with appropriate support. Are they seeking to downsize, relocate closer to family, or simply seeking a change of environment? Could new health considerations or accessibility requirements be driving their decision? Is there a shifting financial situation prompting the desire to sell? Although these conversations may become awkward or uncomfortable, and your parents may not readily disclose all the details, having insight into their true motivations will enable you to adapt your approach accordingly.

Ask them how they picture the process, you can gain valuable insights into their preferences and requirements. This will allow you to align your support with their desires and provide assistance tailored to their unique circumstances.

Anticipate that the sale, even if it doesn't involve the family home, will likely evoke strong emotions. Choosing to downsize or move to a permanent residence can be both thrilling and daunting, particularly when driven by health concerns or the fear of aging and diminished independence. It's crucial to understand how your parents envision the sale process. Are they interested in actively participating in the details, or would they prefer you to handle it on their behalf? Determine their preferred timing for the sale and the reasons behind it. Do they wish to remain in the home while it's listed, or would they prefer to relocate beforehand? Consider their needs, desires, and expectations from you. Additionally, discuss whether they would like other friends or family members to be involved in the sale and clarify their roles if applicable. By addressing these questions, you can better support your parents and ensure a smoother transition.

Assist them in decluttering, preparing, and staging the house.

Assisting your parents in decluttering and preparing their house can be a daunting task, especially for seniors. Offer your support by helping them sort through their belongings and assist in donating or selling items they no longer need. Additionally, you can contribute to staging the house by reorganizing furniture, decluttering surfaces, and adding simple embellishments like fresh flowers and scented candles to create a more inviting atmosphere.

Alternatively, consider involving a trusted REALTOR early in the process to streamline the house preparation and minimize stress. Reputable real estate agents have extensive networks and access to professional resources that can expedite the home-selling process. In fact, certain real estate teams in Toronto, including ours, provide in-house staging and design services as part of their commission. Remember, you don't have to tackle everything on your own, and it can be helpful to have a professional communicate any necessary changes, such as informing your mom that her cherished dining table may be too large for the room.

Assist with maintance tasks and minor repairs

Prior to selling their house, your parents may find it necessary to address minor repairs and maintenance tasks. These can range from fixing leaky faucets and painting walls to replacing broken tiles or addressing any other issues that may affect the overall condition and appeal of the property. Show your support by offering to assist with these tasks or arranging for professional help if required. By ensuring that necessary repairs and maintenance are taken care of, you can help your parents present their house in the best possible light to potential buyers.

Help them find the right real estate brokers

Finding the ideal real estate agent to assist your aging parents in selling their home can feel overwhelming. Given that your parents may not have sold a property in decades, or possibly ever, they might be surprised by the changes in the process. You can ease their burden by helping them select a reliable REALTOR. Start by conducting online research, reading reviews, and seeking recommendations from friends. Additionally, offer your assistance in reaching out to agents and participating in the interview process. Look for a REALTOR who specializes in working with seniors and comprehends their specific requirements. It's crucial to find someone who offers the essential services that align with your parents' needs and who respects and connects with all parties involved in the sale.

Help them navigate the paperwork, technology and legalities

Selling a house involves a significant amount of paperwork and legal procedures, which can be overwhelming for anyone, particularly seniors. While it's the responsibility of the REALTOR to ensure that your parents understand the sales process and the legal documents they are signing, don't hesitate to step in and request clarification or repetition from the agent if needed. If your parents feel too intimidated to ask questions themselves, be proactive and inquire on their behalf. Additionally, it's worth noting that many agents utilize electronic signatures for document signing, which may be intimidating or challenging for older individuals. Take the initiative to discuss any technology requirements during the sale process and inquire about alternative options available to accommodate their needs.

Support your parents

When deciding between purchasing a condo or a house, the choice ultimately boils down to factors such as cost, location, and lifestyle. In the following discussion, we examine the advantages and disadvantages of buying a condominium versus a standalone house.

Ongoing Costs

When you become a condominium owner, a significant portion of your maintenance expenses is covered by a monthly condominium maintenance fee. The specific inclusions of these fees vary between buildings, but it is not uncommon in the Greater Toronto Area (GTA) to encounter monthly fees ranging from $0.60 to $1.00 per square foot. While condo fees may give the impression of being costly, there are other expenses associated with owning a house that often go unnoticed. Here are some costs you can anticipate when purchasing a house:

1. Higher insurance costs: For a typical house, insurance expenses are typically around $100 to $150 per month, compared to $20 to $25 for a condo. Condos usually have insurance coverage for walls, roofs, and mechanical systems through the condo corporation.

2. Water and garbage: Owning a house involves additional costs for water and garbage, which can amount to an extra $600 to $900 per year. In contrast, condo fees often include these expenses.

3. Increased heating and electrical bills: Older houses tend to have higher heating and electrical costs, with most clients experiencing monthly expenses ranging from $200 to $400. Condo fees often cover these costs or provide significantly lower rates.

4. Maintenance: It is advisable to allocate 3-5% of the house's cost for ongoing maintenance, including tasks such as cleaning eavestroughs, ducts, furnace servicing, plumbing, and landscaping.

5. Significant unexpected costs: Even in fully renovated homes, unexpected expenses can arise, such as sewage backup, flooded basements, or leaky roofs, which can be financially burdensome.

6. Renovations: If you purchase a non-renovated house, you should be prepared for potentially larger and more expensive renovation projects compared to condos. Renovation costs can differ significantly due to upgrades in electrical, plumbing, roofing, as well as variations in size and age between condos and houses. It's wise to expect renovations to be twice as expensive as initially budgeted and take three times longer to complete.

For comparison purposes, a 1,000 sqft 2-bedroom condo typically has monthly fees ranging from $600 to $1,000, depending on whether utilities are included.

Location

The location of a property has a significant influence on its cost and the kind of lifestyle it offers. When deciding between a house and a condo, there are several factors to consider:

1. Commuting: Condos often occupy prime locations in the GTA, providing residents with convenient access to work and recreational activities, making commuting easier.

2. Affordability and Location: Generally, purchasing a condo is a more accessible entry point into the real estate market compared to buying a house. However, houses can still be affordable for first-time buyers if they consider moving outside the downtown core.

3. Schools: Residential areas where houses are more prevalent typically have a higher concentration of schools. If you have school-aged children, living in a house may make transportation to and from school more convenient.

4. Proximity to amenities: Some Toronto condos offer the convenience of having essential amenities right at your doorstep. From convenience stores, dry cleaners, LCBO (Liquor Control Board of Ontario) outlets to pet daycare centers, these services can be easily accessible. Consider how important convenience is to you and how much you are willing to pay or sacrifice for it.

When making a decision, it's crucial to evaluate how each option aligns with your preferences and priorities, taking into account factors such as commuting needs, affordability, proximity to schools, and convenience of nearby amenities.

Lifestyle - Houses vs Condos

Condominiums often offer a range of amenities, including fully equipped gyms, pools, big-screen theaters, party rooms, and even bowling alleys. While these amenities come at a cost through condo fees, if you make use of them, it can be a worthwhile investment.

On the other hand, owning a house provides a sense of freedom. You'll experience fewer, if any, neighbor-related issues and won't have to engage in small talk in an elevator. There are no rules and policies dictating the color of your curtains or where you can park your bike.

However, it's important to consider that owning a house requires both financial and time investments for maintenance. Tasks such as shoveling your driveway, mowing your lawn, and dealing with unexpected visitors like mice in your basement can take up your time and necessitate specific skills.

When deciding between a condo and a house, weigh the benefits of condo amenities against the freedom and reduced neighbor interactions of owning a house. Additionally, consider the maintenance responsibilities associated with owning a house and how they align with your preferences and available time.

The Alternative 

Deciding between purchasing a condo or a house is a significant choice, but there is also a middle ground to consider: townhouses. Townhouses offer a compromise between the two options as they can be legally structured as condominiums, where monthly maintenance fees apply, or as freehold properties, granting you full ownership, similar to a house.

Should you buy a house or condo?

When contemplating the choice between a condo or a house, consider your goals, budget, and envision the lifestyle you desire in your new home. Both condos and houses can serve as excellent investments in Toronto or around the GTA, so weigh your options carefully before making a decision.

At the Olivera Group, we are real estate agents that excel at helping our clients navigate the decision between purchasing a condo or a house. They begin by thoroughly understanding our client's needs, preferences, and long-term goals. We take into account factors such as location, budget, lifestyle, and future plans. With our in-depth knowledge of the real estate market, we provide valuable insights on the pros and cons of both options. By considering our client's financial situation, desired amenities, maintenance responsibilities, and personal preferences, we guide our clients towards making an informed choice that aligns with their unique circumstances. Our expertise and personalized approach empower clients to confidently select either a condo or a house that best suits their needs and ensures a successful investment our personal purchase. 

GTA REALTORS® Release May 2023 Stats

In May 2023, the housing market in the Greater Toronto Area (GTA) demonstrated continued improvement in terms of sales. However, the supply of available homes for sale failed to keep pace with the demand for ownership housing. The proportion of sales compared to new listings increased significantly compared to the previous year, indicating intensified competition among buyers. As a result, the average selling price rose to nearly $1.2 million last month.

Paul Baron, President of the Toronto Regional Real Estate Board (TRREB), expressed concern about the housing supply issue, noting that despite positive policy changes, governments have been falling short in this area for some time. Ipsos polling revealed that City of Toronto residents rated the Council poorly in terms of housing affordability and identified the lack of supply as a major problem. This issue extends beyond Toronto and persists throughout the Greater Golden Horseshoe region. If housing supply fails to catch up with population growth, it could impede the economic development of the region, leading people and businesses to seek alternatives elsewhere to reside and invest.

According to TRREB, GTA REALTORS® reported 9,012 sales via TRREB's MLS® System in May 2023, marking a 24.7 percent increase compared to May 2022. However, new listings decreased by 18.7 percent during the same period. When seasonally adjusted on a month-over-month basis, sales rose by 5.2 percent compared to April 2023.

TRREB Chief Market Analyst Jason Mercer highlighted that the demand for ownership housing has significantly risen in recent months. Many homebuyers have adjusted their housing preferences due to higher borrowing costs and are reentering the market. Additionally, robust rent growth and record population expansion resulting from immigration have also contributed to increased home sales. Insufficient listing supply relative to sales has led to upward pressure on selling prices during the spring season.

In May 2023, the MLS® Home Price Index (HPI) composite benchmark decreased by 6.9 percent compared to the previous year but increased by 3.2 percent on a seasonally adjusted monthly basis compared to April 2023. The average selling price was $1,196,101, representing a slight 1.2 percent decline compared to May 2022. However, on a seasonally adjusted monthly basis, the average selling price rose by 3.5 percent compared to April 2023.

As always, we are here to guide and educate all our clients, if you have any questions we are just a text, email or phone call away #yourhusbandwiferealtors @theoliveragroup