Housing prices are starting to make the news for very different reasons than they were a few months ago, and for now are on the decline. As such, selling your home in the current market is no doubt a nerve-wracking time. In this post we’ll first explain some of the changes that have been happening. Then, we’ll help put your mind at ease by offering up key tips for selling your home in this drastically changing real estate market.
The Changing Real Estate Market
Before we get to the tips for selling your home, let’s take a look at the hard facts surrounding today’s changing real estate market:
- The South Etobicoke market has shifted substantially over the last couple of months.
- There are many more houses for sale than there have been in recent months.
- Listings are up 40% from Q1, and sales volume is down 20%.
- Buyers are more hesitant to rush their purchase decisions.
- Homes are taking longer to sell; in Q1 many of our homes sold in seven days with multiple offers, whereas today, most homes are taking 30 or more days to sell.
As you can see, buyers have more choice and you have to make your home stand out if you want it SOLD.
Tips for Selling Your Home
It’s critical to focus on the things that will really help you sell your home and get you the highest price in this market. Things like decluttering, staging, and having a great marketing strategy are more important than ever. Here’s our list tips for selling your home in todays market:
1. Obsess About the Details
There was a lot of slack given to sellers in previous months where homes in some areas were essentially an easy sell. However, with the supply-demand ratio tipping in buyers’ favor, sellers need to do a little more work to get their homes sale-ready.
When it comes to house preparation, don’t underestimate the benefits of decluttering, depersonalizing, deep cleaning, and professional staging. Buyers need to fall in love with your home – and that connection is something you can influence.
Incredible photography and video are critical to attracting buyers where they’ll first see your home – online. Moreover, when it comes to marketing, your agent needs to go well beyond listing your home on MLS.
2. Be Prepared for Fewer Showings
The number of showings has gone down for two main reasons. Buyers have more homes to choose from, and many buyers have moved to the sidelines so there are simply fewer of them. However, because of the choice available, buyers that do come to view your home are more serious. We used to say that it takes 15–20 showings to get an offer. Today, this may be lower.
3. Scrutinize Offers and Potential Buyers
When you’re considering an offer (or if you’re lucky multiple offers), it’s important to know who your buyer is and their capacity to close. Banks have gotten tougher with their lending so you need to try to ascertain how secure your buyer is in terms of finances, and the resulting probability that they will close.
Some questions you may want to ask are: Do they have a house to sell? How much is their down payment? Who is lending them the money for their mortgage? What is the plan if your home doesn’t appraise for what they offered to pay you?
Of course, the answers to these questions aren’t always easy to uncover, but it’s worth trying to do a little digging through your agent. After all, you have to look out for your interests as far as you possibly can.
4. Ask for a Large Deposit
When a buyer makes an offer to purchase a property, they also provide a deposit (usually held in trust by the listing brokerage). So how big should that deposit be? Larger deposits are always better as they ensure the buyer has some skin in the game. After all, it’s easier for them to walk away from $10,000 than it is $50,000.
5. Know That Conditions are the New Norm
When a buyer isn’t competing for a property in a bidding war, we usually expect them to make a conditional offer. This means that their offer is conditional upon things like getting financing or a home inspection (usually for 3–5 days, though longer condition periods are stipulated in some cases).
If the buyer doesn’t waive the conditions, they are able to walk away from their offer and their deposit is returned. Conditions can be frustrating for sellers because it prolongs the process – but really, it’s win/win. It’s better to find out two days after an offer that the buyer can’t get financing instead of two days before closing.
6. Remember That Negotiating is a Two-Way Street
One of the most important tips for selling your home is to remember that you’re looking to create a situation in which both sides are happy. First, this means you need to be clear about what’s most important to you and prioritise it. You also need to be flexible when it comes to terms that are less important to you. For example, you may have some leeway with price, but you’re firm when it comes to the closing date.
You need to make sure your agent is aware of your priorities, and any areas where you have some wiggle room. Our team at ThompsonSells is very experienced in negotiating, and will ensure that we get the deal that’s right for you.
7. Be Prepared to Be Flexible on Price
As we can see from the drastically changing real estate market, no one can truly predict which direction pricing is going. However, if you’re set on selling in the relative short-term, it may be wise to sell at the start of a declining market than to ride the market down. Now is probably not the time to hold out for a higher price.
If you’re thinking of selling in Etobicoke, we’d love to help. We’ll meet with you and help guide you through the entire process. Click here to arrange your private seller consultation today.
Image credit: Nick Youngson
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