With so many homes listed in the market and the ease of access the internet has provided us, agents, sellers and buyers spend hours screening through MLS listings…we have so many options and ways of comparing homes and investment properties!
I’ve been on several listing appointments this year and so many of my prospect clients want to sell their home for no less than what their neighbour “SOLD” for (which in many occasions is only the price it was “LISTED” for)….please note that I hesitated in writing this blog but I do it because I appreciate when people are upfront. My clients have come to appreciate this, they’ve placed great value on such integrity and this gives me the confidence of sharing my experiences through this blog.
As a seller, when you hire an agent, you hire an him/her for their knowledge and expertise. Right? You want an agent that looks after your pocket and cares? Correct? Someone that knows how to negotiate, not someone who throws numbers around without anything to back it up; yes? —-I hope your answer is YES to ALL THE ABOVE .
So why is it that homes are compared and/or listed for the price neighbours have their homes listed for? Fear? Fear of selling less than the neighbours home which is not as nice? Fear from the agent of giving you a lower number for your home and you not liking it, hence choosing someone else to market your home. Here’s the reality… in Ottawa, most homes don’t usually sell for what they’re listed for. So if you’ve been eyeing your neighbours’ $450,999 home to see when it sells (and trust me, if it’s over-priced, its likely going to take a longggg time to sell); there’s a high chance it won’t be selling for THAT figure.
When we are asked to conduct a proper CMA (comparative market analysis) for our clients, we, as Realtors, are trained to compare your property to other properties similar to yours that have sold in the recent months (in line with the current market conditions).
So whats the big problem with comparing your property to LISTED properties rather than SOLD ones? In one word, I’d say: Disappointment. Why? As a seller, you’ll be disappointed that your home hasn’t sold. That your home hasn’t had ONE single call or showing. If you’re lucky, you’ll get a buyer who likes the home enough to give you what you are asking for…the appraiser and the bank might not agree though- leaving you with NO DEAL after all.
On the other side of the spectrum we have the buyer. The buyer who wants your overpriced home badly and actually agrees to your price. And that’s when disappointment lingers again because Mr. Joe Banker refuses to risk lending the buyer more money on a home where the appraisal did not come in line with the dollar figure being offered. Another scenario could involve the buyer missing out on the opportunity to come into your home and fall in love with it because it was out of their search parameters (It never made the cut!). It’s disappointing for that buyer who could have found his/her dream home in your home, but was in a way, too expensive for them when it was listed.
When properties are priced right, we:
Get better response from advertising and sign calls.
Increase activity and don’t miss out on potential buyers.
Attract better offers.
Net a higher sale price (Why? When a seller’s home is listed for too long, buyers start thinking there is something wrong with the home. After many days in the market, many buyers assume the seller is probably desperate by then…so they start submitting ‘low-ball’ offers. After receiving zero offers, many sellers entertain such offers and end up getting less than they could if they would have priced the property right from the start).
Find and work with a Realtor that is willing to give you accurate numbers and statistics so that you can better understand market value and have a stress-free RealEstating™ experience. How much does it cost you to work with a Realtor in Ottawa?