Selling Your Home When the Market is Slow
by Dave Williams
In the wake of the worst month of home sales since 2010 in Ottawa Real Estate many people are asking; is this the right time to sell my home, Should I wait till the market gets better, and What if I have to sell my home?
Good news everybody, even now in a “slow market” hundreds of homes are selling each month and if you need to sell there are many was to ensure it sells.
Yes it is a given that a lower price is a good way to ensure a sale but it also happens to be the factor you have the most control over. Setting your asking price too low can cost you a sale as easily as asking way too much, bargain prices often leave people wonder what’s the catch while over inflated prices chase away serious offers for fear of offending you.
The key to setting the right listing price lies in the Perception of Value. We often base our listing prices based on what other, similar homes have sold for on the basis that if one person saw value in a home at this price then so too will the next. The key pricing strategy we use in our valuation methods is the little bit less, little bit more system. Years of experience and hundreds of homes sales have shown us that pricing a home slightly below the previous sale will usually bring in more as the people who waited just a touch too long on the last sale are quicker to make an offer the second time around.
Have you ever wondered why model homes that have never been lived in still have furniture? It makes the home look better! Buyers need help visualizing the space as one they can live in. Existing furniture makes it easier to picture how their stuff fits into the each room…and starts the process of them picturing themselves living in this home.
In our experience the moment a buyer starts talking about changing the paint color or removing offending decorations, moving furniture around or comparing the size of the couch to theirs they have take the first step in considering this home…unless they see something better.
Bringing us around to #2.5 Know your competition. If the 3 homes they look at have hardwood floor and yours has carpet, the next 3 have interlock and yours asphalt, the next 3 fenced backyards, and yours only hedges…well you get the point. This is where a professional evaluation of your homes value and the competition can set you ahead.
All things being equal save the price, your potential buyers will choose the better price.
Price being equal, potential buyers will choose the better home.
Put the property in front of the people who will buy it, is by far the hardest part of the selling process…but I may just be biased.
Only one person (couple) is going to buy your home, they question becomes Who Are They? The most likely buyers of your home are living nearby (typical moves are less that 10km), own or rent a home/condo valued at about 75% of yours (that they might just be selling).
Demographically they are a lot like you were when you bought this home, considering the neighbourhood and home for many of the same reasons you did those years ago.
So what drew you to this home in the first place becomes the benefits you want to promote in your search for a buyer and the places that you frequented during your home search (on-line and off) are the best places to advertise.
You can’t move the home so you’re stuck with the location you have…but you can highlight the best benefits of the location you have.
I’m Real Estate Dave and this is my contribution for today.