- Have you had a flood of activity on your home which has since died off?
- Did you price your home according to what other comparable properties were listed for only to find that the feedback from buyers is that your home is priced too high?
- Do you know what other similar properties in your area actually SOLD for?
Although the real estate market in Ottawa is strong overall, some properties still sit for long periods of time. The most common reason is that the home is overpriced. As a seller, overpricing your home can have serious financial consequences that are not immediately obvious. For starters, a property that sits on the market quickly becomes old news and as time passes it is less likely to attract interested buyers.
Buyers looking for a home in your area will compare the price of your home to those of others and they are more likely to pursue a home that is priced reasonably. You are in essence helping to sell the other homes by encouraging interested buyers to look elsewhere.
Even if you find someone willing to pay the elevated price for your home, the deal may subsequently fall apart when the buyers are unable to secure financing if the property appraisal comes in at a lower price. This situation creates another red flag for future buyers because they will wonder why a property conditionally sold and then was put back on the market. You never want to have people suspect there is something wrong with your property and that is the message you are sending when you are putting your home back on the market due to other buyers backing out.
Sellers sometimes think that trying an elevated price won’t hurt since they can simply reduce the price if there has been no interest in the property. The problem with this thinking is that price reductions signal to buyers that the property was originally overpriced and that the sellers are now becoming desperate. This only invites low-ball offers or encourages buyers to wait even longer to make an offer as they wait for the next price reduction. This strategy can result in not being able to sell the property at all, or having to accept a lower price than you could have gotten if the home was priced correctly in the first place.
A Realtor will unlock the information you need to price your home correctly.
A home is worth what a buyer is willing to pay for it today. The market fluctuates with the seasons, depends on the local economic situation and is related to specific neighbourhoods. The best tool a seller can use to price their home correctly is to consult a professional Realtor that specializes in the seller’s neighbourhood. Agents have access to comparable sales data that is invaluable when pricing a home. It is not what a home is priced at that matters, but what it SELLS for. Take advantage of their expertise, price your home correctly and watch it sell quickly for a price you will be happy with.
If you are looking to buy a home, or are thinking of selling yours, I would be glad to represent you and help you negotiate the best deal. Please contact me at steve@stevewalsh.ca.
Image courtesy of Stuart Miles / FreeDigitalPhotos.net
