Selling your house in Toronto is a wonderful thing, especially in this out of control sellers’ market. However, the funny thing about sellers’ markets is that some sellers might get overly enthusiastic and kind of sabotage their own success. You really can’t take this kind of market for granted and need to keep your head screwed on tight to avoid becoming your own worst enemy. Here we review the most common sellers’ mistakes you should avoid in an out of control sellers’ market.
Pricing Too High For Your Home’s Condition
Now this is where it can be hard to not get over zealous. Selling in a sellers’ market means you are going to get a pretty darn good price for your home. BUT and this is a big BUT, you need to keep the condition of your home in mind. We’ve seen bidding wars get pretty exciting even for the less fair of the homes we’ve sold all because there is such limited supply. So the right strategy for homes that are a little worse for wear is to listen to the advice of an experienced real estate agent and price your home accordingly. If you don’t you might be surprised to see more buyers actually passing on the option to put in an offer because they’ll know they’re being taken advantage of due to supply issues. We certainly would warn our buyer clients off an overpriced fixer upper. The beauty of listening to your agent is that you’ll attract more serious buyers, and have those serious buyers competing with offers closer to the price you were hoping to get for your home. Smart pricing means you set a fair price and then allow market demand to dictate how much more a buyer might be willing to spend.
Over Estimating Demand for Your Location
Much like above, even in a sellers’ market not every neighbourhood is as attractive as the next. Again, it’s all about pricing your home appropriately for your home and location. It might be nice to think your humble home in East York is equally as in demand as say trendy Trinity Bellwoods, but unfortunately that isn’t the case. The good news is, also like above, your area is a lot more attractive in a sellers’ market than it would be in a buyers’ market as buyers are forced to make more compromises. As long as your house is priced right, you’ll see offers come in and more than likely increase your chance to get multiple offers. Overestimating buyers’ desperation and demand for your location can keep you from making a very good profit.
Passing On Offers Too Often
Visions of striking it rich might hinder your ability to recognize a good offer when you see it. This is where we come in. We focus on getting the best possible price and terms based on current market conditions. We consider this when we price your house, but also during the offer process. We hate to see sellers get too focused on price alone and pass on very respectable and even generous offers. If you pass too often because your expectations are too high, you’re the only one who gets hurt. That’s why it’s so important to understand your home’s true value. Working with a real estate agent who completely understands your exact micro neighbourhood’s market and how home sales are doing in your specific circumstances helps you avoid passing on offers you should be accepting. And listen: When you pass too often your home sits on the market too long during a sellers’ market which is a major red flag something is wrong. This can completely ruin your chances of a sale even in a hot, hot market.
Not Staging The Home
Even when the market is low on inventory, you still need to appeal to the buyers’ eye. If you fail to stage your home, even with the most basic presentation rules like keeping it clean, you can see your home become less valued in buyers’ eyes. You’ll still get offers, but they won’t be as good.
Not Listening To Comp Pricing
We’ve mentioned the importance of listening to your agent, and we’re going to say it one more time. Agents know the market and base your home price on comparable homes in your area. This establishes a fair price based on what the statistics are showing buyers are willing to pay. With prices nice and high right now, you need to make sure you aren’t overpriced because it isn’t a strategy that works in any market. Price your house right for your area, not based on the highest price you saw many streets over, or for a completely renovated home, or for a home with parking. If you feel the comparable prices seem too low, you can research other homes for sale in your area. This way you can see what homes are selling for, what those homes look like and get a better idea of how you compare to the competition. Just be sure you’re being realistic when you do the comparisons. It can be really hard being objective about your own home which is why agents are so important!
Not Looking For A Home First
With limited inventory, selling in a sellers’ market can get dicey. This is a good time to figure out if it makes more sense to find a new home first. In a sellers’ market you know your home will sell and more than likely over asking if your home is priced right. You’re also only looking at sitting on the market for about 20 days or less if your home is in high demand. Of course, you can ask for a longer close date to buy time to find your home, but this can sometimes be a turn off for buyers. So let’s look at the pros and cons of buying first:
• Housing prices are risings so you’ll likely pay less now than you would in a few months
• You won’t make a desperate offer for a home you either don’t like or that is overpriced because you don’t have a deadline you’re up against due to your closing date on your home sale
• You’ll know you have somewhere to go if your home sells way faster than you thought
• You’ll have a better idea of a closing date that suits your needs when you sell
• You might get way more for your house than you thought and miss out on the chance to buy a larger home or a home in a more desirable neighbourhood
• There’s an off chance your home might not sell, and you’ll have two mortgages
In most cases looking for a home first reduces stress and gives you more confidence when negotiating your selling price.
The Bottom Line
No doubt you’re in the drivers’ seat when it comes to selling in a sellers’ market. However, the simple mistake of taking your eyes off the road even for a second can cost you dearly. So having a an experienced real estate agent in the navigator’s seat keeps you on course, and you’ll reach your destination safe and financially sound!
If you want to talk about your home value in the current market, we’re some of the best real estate agents Toronto offers. We’re ready to find solutions to get top dollar for your home and make the right decisions if you receive multiple offers. Give us a call at 416.291.7372 or email us at firstname.lastname@example.org. We’d love to work with you!