What should you expect when selling your home in the current market? To answer that question, we first need to determine what “current” even means in real estate today. If the last few years have taught us anything, it’s that everything can change so fast.
Just look at what happened in 2022. In February, buyers were scooping up every listing that hit the market, and there were nowhere near enough homes available to meet the insatiable demand. Fast forward two months to April, when rising interest rates brought the market nearly to a standstill.
Even then, certain pockets and micro-markets continued to sell like wildfire. Fast-changing conditions can make it difficult to set realistic expectations when selling your home. However, certain best practices can help you achieve your desired results no matter what the circumstances.
Today’s Market: It’s All Relative
Regardless of how the market behaves, some aspects of your sale will be easier than others. For example, imagine it’s a hectic seller’s market, with high buyer demand but few listings to choose from.
In this case, you can reasonably expect that selling your home will be easy. You may even see multiple offers pouring in, if not an all-out bidding war. At this point, everything seems to be coming up roses! Your house sells quickly, and then…
You reenter the market as a buyer this time. All of a sudden, the market isn’t on your side anymore. You join the throngs of house hunters competing for the precious few properties available. When you sold your home, you may have been thrilled to receive well over your asking price. But now you must offer more than asking for the new house you wish to buy.
Now let’s look at the reverse scenario.
Imagine trying to sell your house during a slower-than-slow buyer’s market. To make matters worse, three of your neighbours also list their homes, but no one is biting. Your house sits on the market, with little to no interest from potential buyers. So you lower the price. Still, nothing happens. You drop the price once again, and finally! A buyer comes along, and your transaction closes.
Selling your house under these conditions can be a long, exhausting process. But the worst of it is over – because now you get to reenter the market as a buyer.
And all of a sudden, conditions are in your favour again. Whatever the market is doing, it all balances out. However, your strategy depends on being prepared, flexible, and ready to act when an opportunity arises.
What’s your next move after selling your home? Here are a few ideas to entertain:
- 5 Reasons to Make Guelph Your Next Home
- Buy To Rent Or Buy To Downsize?
- Five Best Cities in Ontario to Buy Recession-Proof Investment Properties
Strategic Pricing Is Critical
If you want to maximize your results in any market, almost nothing is more vital than a well-researched pricing strategy. If you list your house too high, it will generate little interest and take longer to sell.
In the worst-case scenario, a house that sits too long on the market can develop a stigma. Not only will buyers not be interested, but they could also actively start avoiding your home because they believe there is a problem.
Pricing your house too low is also a mistake. You might enjoy a fast, easy sale, but you could also earn less than your property is worth. This puts you at a disadvantage when trying to move on to your next home. How do you determine a fair price for the current market?
A local real estate agent can provide you with much-needed insight. They will have access to the latest sales statistics in your area to see how much similar homes have sold for. They will also perform a CMA (Comparative Market Analysis) that factors in the size and age of your home, how many bedrooms and bathrooms it has, and any recent updates you have made.
Did you know that Go Wylde Real Estate offers free home evaluations? You can book yours today right here.
Presentation Matters – But How Much?
Here’s a fact you are unlikely to find surprising: The more beautiful your home appears, the more desirable it becomes in the eyes of a buyer. That’s why many homeowners pull out all the stops to prepare before their listing hits the market. Some will paint, renovate, and landscape until their property looks like it could be featured in a magazine. Is all of this necessary? It depends on the market. Some updates will always help you get better results, even in the busiest seller’s markets.
For example, it’s impossible to go wrong with thoroughly cleaning and decluttering your home before welcoming potential buyers. Minor repairs can also go a long way to adding perceived value and making your home more desirable.
What if the current market is not in your favour as a seller? In this case, you will need to choose your updates carefully. Making your home look spectacular will help you stand out amongst competing sellers. However, you’ll want to analyze how much any home improvements will cost compared to their potential profit.
For example, imagine paying $2,000 to paint your home from top to bottom. If it adds $10,000 to your final selling price, you have something to celebrate! But you will not feel so ecstatic if you pay $10,000 for an update only to see a $2,000 return.
There are a lot of moving parts to a real estate transaction. But the following resources will help you stay informed:
- Types of Offers and What They Mean
- The Double-Edged Sword of Rising Interest Rates
- Renovating Vs. Selling Your Home As-Is
Expert Guidance Always Matters
The best way to stay on track and avoid the potential pitfalls when selling your home is to work with a local agent who can guide you every step of the way. Not sure if a specific renovation will pay off? Your Realtor® can analyze the market and help you focus only on what will get you the best results. And that is just the tip of the iceberg. Your real estate expert will market your listing extensively and negotiate relentlessly on your behalf. No matter what happens in the market, expert guidance is the key to a home-selling experience worth celebrating.
Is there a move coming up in the near future? We are happy to guide you through the current market to make your sale as successful and stress-free as possible. Reach out today at info@gowylde.ca or call 519-826-7109 for more information.
