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Selling a Home -- Understanding Market Conditions

How market conditions determine pricing

The real estate market is always changing.
It helps to understand how market conditions can affect your position as a seller.


Market Conditions Characteristics Implications
Buyer's Market:
The supply of homes on the market exceeds demand.		 High inventory of homes. Few buyers compared to availability. Homes on the market longer. Prices tend to drop in this type of market. Your home may take longer to sell. Less negotiating leverage in terms of selling prices.
Seller's Market:
The number of buyers wanting homes exceeds the supply or number of homes on the market.		 Smaller inventory of homes. Many buyers. Homes sell quickly. Prices usually increase. May have more negotiating leverage and obtain a higher selling price for your property.
Balanced Market:
The number of homes on the market is equal to the demand or number of buyers.		 Demand equals supply. Homes sell within an acceptable time period. Prices generally stable. More relaxed atmosphere. Buyers have a reasonable number of homes to choose from.

Looey Tremblay of Royal LePage Real Estate can tell you the market conditions at the time you are considering selling your home.

Pricing your Property

The single most important decision you will make with your Royal LePage Real Estate Professional is determining the right asking price for your property.Once you've achieved a realistic sale price, you can count on your property being professionally marketed and promoted to bring more buyers to your door. You can also expect to sell your home for the best possible price in the least amount of time.

The Benefits of Pricing Right

  1. Your property sells faster, because it is exposed to more qualified buyers.
  2. Your home doesn't lose its "marketability".
  3. The closer to market value, the higher the offers.
  4. A well-priced property can generate competing offers.
  5. Real Estate Professionals will be enthusiastic about presenting your property to buyers.
    6.

Determining the Value of Your Home | Home Appraisal Tool

The market ultimately determines the true value of your property. Before you compare your home to similar properties and establish a competitive list price, the following points should be considered:

  1. Location
  2. Size
  3. Style
  4. Condition
  5. Community Amenities
  6. Buyer Supply
  7. Financing Options
    8.

Getting to Know Your Market

A comparative market analysis is an indicator of what today's buyers are willing to pay for a home. It compares to market activity of homes similar to yours in your neighbourhood. Those that have recently sold represent what buyers are prepared to pay. The homes currently listed for sale represent the price sellers hope to obtain. And those listings that have expired were generally overpriced or poorly marketed.

Looey Tremblay of Royal LePage Real Estate will prepare a comparative market analysis for your home based on the most current market information. Together you and Looey will establish the proper list price for your home.

Understanding the Factors that Influence Overpricing

  1. Extensive renovations/hidden costs
  2. Desire to purchase in a higher-priced area
  3. Original cost of the home was too high
  4. Lack of real market information
  5. Building in "bargaining room"
  6. Perceived emotional value
    7.

The Result of Overpricing

Many sellers believe that if they price their home high initially, they can lower it later.

Often, when a home is priced too high, it experienced little activity. Gradually the price will come down to market value, but by that time it's been for sale too long and some buyers will be wary and reject the property. Also, other agents may hesitate to show a stale property that may represent poor value.

On occasion, the price is dropped below market value because the seller runs out of time. The property then sells for less than it's worth.

Missing the Right Buyer

You may think that interested buyers "can always make an offer", but if the home is overpriced, potential buyers looking in a lower price range will never see it.Those who can afford a home at your asking price will soon recognize that they can get better value elsewhere.

The Importance of Early Activity

As soon as a home comes on the market, there is a flurry of activity surrounding it. This is the crucial time when Real Estate Professionals and potential buyers sit up and take notice.If the home is overpriced, it doesn't take long for interested parties to lose interest. By the time the price drops, a majority of buyers are lost.

Agree on a Marketing Plan

Your property is not something you sell everyday. In fact, for many people it is their largest asset. A house is very complex to market and the process needs to be well organized. To do the job properly a plan is needed.

Looey Tremblay of Royal LePage will prepare a personalized plan for you containing all activities intended to market your property. Through Looey Tremblay of Royal LePage, your property will be aggressively promoted through Royal LePage's own property advertising publications, other Royal LePage offices and Real Estate Professionals, the MLS computer system (unless it's an exclusive listing), local advertising mediums including the various forms of print advertising, INTERNET advertising and mailings to potential buyers in your area.

Signing a Listing Agreement - Ask these 21 Questions first!

The first formal step in marketing your property is to enter into a Listing Agreement--a contract that commits Royal LePage to actively market your home for a specified period of time. It also commits you to a pre-established marketing fee that is to be paid upon the successful closing of the sale.

The following documents may be required:

Plan of Survey or Location Certificate - A survey of your property which outlines the lot size and location of buildings as well as details of encroachments from neighbouring properties. This may be required in certain areas to complete the sale of your home. Your legal professional may recommend that you obtain a survey, especially if significant changes have been made to your property.Property Tax Receipts - Most Listing Agreements require that the current annual property tax assessments be shown.Mortgage Verification - Few homeowners know the exact balance on their mortgage as it is paid down. You will be asked to authorize your mortgage lender to provide the figures required. If you will be discharging your mortgage this will show you any penalties that apply.Deed or Title Search - This document is a legal description of your property and proof that you own it.Other Documentation - In some instances, it may help the sale of your property if you can provide prospective buyers with information on such items as annual heating, electrical, and water expenses, as well as any recent home improvement costs.Note: In many provinces you will be required to sign a property condition disclosure statement. It is not mandatory in Ontario but is a good idea.

Aim Higher When Preparing to Show Your Home

First impressions are lasting impressions. You will want to make sure that buyers looking at your home are left with the best possible impression. Looey Tremblay of Royal LePage Real Estate can help you achieve that goal.

Exterior

  • House exterior in good repair, painted if necessary
  • House number easy to read
  • Eaves troughs, down spouts and soffits in good repair
  • Garage/car port clean and tidy
  • Litter picked up
  • Cracked or broken window panes replaced
  • Lawns and hedges cut and trimmed, garden weeded and edged
  • Walks shovelled and salted
  • Boot tray inside front door
  • Doorbell and door hardware in good repair
  • Porch and foyer clean and tidy
    •

Interior

  • Chipped plaster and paint touched-up and repaired
  • Doors and cupboards properly closed
  • Leaky taps and toilets repaired
  • Burned out light bulbs replaced
  • Squeaky doors oiled
  • Mirrors, fixtures, and taps cleaned and polished
  • Seals around tubs and basins in good repair
  • Floors cleaned, garbage containers emptied
  • Inside of closets and cupboards neat and tidy
  • Appliances cleaned
  • Countertops neat and polished
  • All lights turned on during showings
  • Air conditioner turned on in warm weather
  • Fresh air in house
  • Fireplace lit in cooler weather
  • Halls and stairs cleaned
  • Drapes opened during daylight
  • Carpets freshly vacuumed
  • Fresh flowers in various rooms
  • Jewelry and valuables locked safely away or taken with you
  • Valuable property, such as objects of art, vases and figurines out of reach, out of sight, or locked away
  • Pets absent, where possible, or contained during the showing, and litter boxes clean
    •

Moving Tips here.

 
Looey Tremblay ( Associate Broker)
Re/max Twin City Realty Inc. 842 Victoria Street North, Kitchener, Ontario N2B 3C1
Phone: (519) 579-4110, Fax: (519) 579-3442, Email: looey@looey.com
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