Are you a current seller who feels that your home has been on the market longer than you ever expected? Perhaps it is
time to rethink your selling strategy and spend some time with your listing agent discussing the situation and
possible changes to increase the salability of your property. Before we look at some factors that contribute to the
length of time that a home might end up being listed for sale, let’s first visit the overall Real Estate market and
how it has changed in the past 10+ months.
The early part of 2017 saw record high selling prices. Why was that? Simple economics of supply and demand. The
inventory was extremely low and the buyer “pool” was very full. Stated another way – there were very few houses for
sale in a market where there was a large volume of buyers looking to purchase. This resulted in most sales having
multiple offers and what tends to be referred to as “bidding wars.” For every house available, there were 40 or more
buyers who were willing to fight to obtain that property. The situation lasted until Easter weekend when the “wave”
crashed. Some sellers thought that they could still make a huge profit by dressing up their homes and putting them
on the market – but they were too late by then. At the same time, buyers decided they weren’t going to fight
anymore. Some buyers started looking outside of Durham Region and the GTA while others entered into lease agreements
to put off purchasing for a year or more. Result? – Total reversal of the market. Now we find that we have a surplus
of houses for sale and fewer people who are looking to purchase. Buyers have the luxury of choice now and don’t need
to scramble for a home. You need to make sure you are positioned to be on the list of their choices.
Is Your House Priced Right For Today's Market?
Listing price should always be determined by the current market situation. As we’ve all heard before, “something is
only worth what someone is willing to pay for it.” You should not be listing your home for a price that greatly
exceeds what similar homes have recently sold for in your area. There are still homeowners who believe that they can
ride the “wave” that no longer exists and will put a highly inflated price on their house. The surf is out, the
wave is gone, and the market has changed!
Price is usually the number ONE reason that a house is sitting on the market for too long. The longer it sits, the
worse it will get. Your listing will either become “stale” and all traffic for showings will stop or you will be
forced to do a price reduction if you are determined to sell. Work closely with your listing agent when you are
initially setting a purchase price for your house. Your agent should be using data from comparable homes that have
sold in the past 30 days (60 days at the most). Pricing to sell in this manner ensures that buyers are willing to
purchase because the historical sold data supports this position. Be realistic with your initial price and you are
likely to be successful.
Location
Location is also one of the primary factors that play a key role in trying to sell your home. Location is not
something that you can change, so you need to be sure that the listing price is reflective of your property’s
location. If you live near a city center, close to schools, near a number of popular amenities (such as shopping and
movie theatres), medical facilities, golf course, etc. then you have a much higher chance of selling at a price that
is acceptable to you. However, if you live on a very busy street or a significant distance to any amenities, you and
your listing agent need to take that into account when looking at the comparable data and setting a realistic
purchase price.
Condition
You need to give great consideration to the overall condition of your home before putting the house on the market.
Make sure that your house is in a saleable condition, and that a new buyer won’t be faced with having to replace a
furnace, air conditioning or other major components. Ensuring that primary items are already in great shape will
allow you to price at a higher level than if you leave these things for a new buyer to handle. The majority of
buyers want a move-in ready home. You can always leave the house in “as is” condition knowing that repairs will be
needed, but you will have to price accordingly. The condition of your home, when seen through the eyes of a
potential buyer, is not limited to the exterior of the actual building or the interior of the layout. What is known
as “curb appeal” is a huge part of what makes up the overall impression of the property. If the landscaping is
overgrown and unsightly or the driveway is full of pot holes and cracks, that’s enough for people to just drive by
the “For Sale” sign and not bother to follow up with an agent. The outside of your home should be a reflection of
what awaits the buyer when they enter the premises.
Conclusion
Right price, good location and move-in ready condition will almost always get a house sold in a realistic amount of
time.
*Not intended to solicit clients currently under contract*