Seller’s seem to be dealing with a tough time trying to any offers much less a good price for their home these days. There aren’t many buyers for all the listings that are posted on the market. With the Bank of Canada rate increase, Mortgage Qualification Stress test increase and foreseeing another BoC increase in October it’s making slightly harder for Buyer’s to qualify and buy homes. Though we see an increase in the Sale to List ratios which makes it ‘look’ like things are improving a number of listings are expiring and will be expiring in September as the School year and fall season roll in.
The few Buyer’s that are looking seem to be looking for those turn key, move-in ready homes these days and the ones with the most to offer for the least amount of money seem to be getting picked up quicker than those that are even slightly inferior. As I watch the MLS stats, those seller’s that can get ahead of the game and ‘afford’ to make the drop of $10,000 below the average fair market value for similar homes and for the condition the home is in usually get the offers and end up selling quicker than everyone else.
This may not be the case though for everyone. Buyer’s are so picky these days and time seems to be on their side. Nothing is guaranteed. I get agent buyer comments like, ‘Beautiful location and home but they didn’t like seeing the neighbours drinking on their patio next door.’ Who can blame them for enjoying a cold one on a beautiful sunny day?
What does this mean for you if you are selling?
Good news is if you are upgrading you may take a bit of a loss on the sale of your home but as you get into the higher valued homes hopefully you can make the same percentage off the price. You are getting more home in this market for much lower prices.
If you are downsizing you may take a bit of a loss but hopefully minimal if you can really work on getting the home to feature the move in ready feeling and pricing it right to begin with. Remember most of the interest you will get will be during the first 3 weeks of listing so pricing it right is crucial as opposed to pricing it high to begin with,consistently dropping and accepting a lower price than what you might have got in the first place. If you have time on your side perhaps waiting for the spring market might be an option though it’s hard to predict what the 2018 economy might entail.
Be prepared to stick it out for a few months if you are priced among the average. Consider putting in the extra effort and make all the little repairs, more significant ones if possible, painting and pre-packing. Have the conversation a month or two before listing with your real estate expert to get informed and take their advice as to what they think you could do to make your home show ready.
As the summer comes to a close and fall and winter roll in the market will slow down. If you need my thoughts and opinion on a strategy for you whether you are Buying or Selling give me a call! I love to help & I’ll let you know what the best strategy is for you based on your needs.