Selling Your Home And The Perils Of Overpricing

Another Spring market is on the horizon and anyone who has been contemplating a move has probably already spent considerable time wondering what their home is worth. In addition to the various and sundry other tasks that Sellers are told to address before going to market, the most important consideration is always price. Pricing is not an exact science, and everyone wants to get the most money possible. However, it’s important to bear a few things in mind so as not to miss the mark completely.

1.   Don’t be greedy. 

Remember that Buyers judge both you and your home. If yours stands out next to others in the area simply because of the price, they will quickly channel their efforts towards those other properties thereby passing you over altogether.

2.   List Prices Are Not Sale Prices.

One aspect of real estate I love most is the challenge of bringing Buyers and Sellers together – in other words, reaching that meeting of the minds. Sellers are free to demand whatever they like. Ultimately, however, it is the Buyer who determines fair market value. So, when you look around your neighborhood at the competition, keep in mind that the prices Sellers are asking do not necessarily reflect the values Buyers have attached to them. So, make sure you are dealing with actual sales data (i.e. the prices at which neighbouring houses have sold for) and not just what other Sellers are currently hoping to get for their properties.

3.   Price Reductions Send The Wrong Message.

Don’t be fooled into thinking that, once you’ve missed the mark on price, you simply reduce the price and it will sell. Price reductions can send some rather unfair and unnecessary messages:  (i) The Sellers are greedy.  (ii) Neither the Sellers nor their agent have any idea what they are doing.  (iii) The Sellers aren’t that serious – they’re just testing the market.

One final note about Selling in general: Get honest, objective feedback. I’ve said it before, but it warrants repeating: Owners (including real estate professionals) are not the best ones to determine what their property is worth. Get unbiased opinions and feedback about the upsides and downsides to your home. The things you love about it may not translate well to the open market. Similarly, things you view as obvious to everyone may need to be showcased or spelled out for prospective Buyers.

Need help getting the most for your home? Visit this link: Tips To Higher Prices

Condo Living: Strong Re-sales Reflect A Strong Community
I still have fond memories of condo living. I also have never forgotten that my experience had everything to do with the calibre of the condo board members. When I am working with clients who are in the market for a condo, I always remind them to get involved with the board and make sure they are well acquainted with the property management. Time constraints may not allow for you to become a board member, but you can get involved in other ways. At the very least, make sure you read every communication from the board and property management. If something concerns you, make sure you communicate your views in a courteous and sincere manner. Get to know your neighbours as well. They can really become allies when something needs addressing. This can also open your mind to alternative views. Many people like the anonymity of condo life. However, at the end of the day, they are communities just any other and getting engaged & taking part in it is good for everyone. It can also have a direct impact on resale values.

Tales From The Trenches: Hardly Hardwood
I was recalling a property tour recently that featured hardwood flooring in the basement. There were no photos, but my clients and I assumed this was definitely an upgrade worth checking out. The rest of the home seemed to stack up nicely to what was promised in the listing. However, after descending to the basement, we let out a collective sigh of disappointment peppered with nervous laughter. We were left standing on large sheets of plywood that had been crudely bolted into the concrete floor. No amount of varnish & polish could spruce this one up. Sadly, there was no consolation prize for what we termed “hardly hardwood”.

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