1. Know Your Market
It is incredibly important to understand what market you’re in when you’re considering selling. There are generally 3 options:
A) A buyer's market - there are more listings than buyers to purchase them. In economics terms, it means there is excess supply and reduced demand which can result in a downward pressure on prices. Listings stay on the market longer and buyers worry prices are falling and have a hard time making decisions.
B) A seller's market - there are too many buyers and not enough listings. The reduced supply of homes and pent up demand causes an increase in prices. This is when listings sell very quickly, there are multiple offers and buyers have limited options and time to make decisions.
C) A balanced market – there is approximately the same amount of buyers and sellers. Prices remain stable and people are calm about decision making.
Keep in mind there are mini-markets within each city. The type of home you have will also affect the above - is it a detached home? Townhouse? Condo? All of these factors play an important role in knowing your market!
2. Price it Right
A) Get a CMA: A REALTOR® prepares a comparative market analysis (or CMA) report for a home by looking at current, pending and sold homes that are similar in size, location and type to your home. We use this information, along with our expertise of the market conditions, to give you a price range for your home.
B) Know your net! A good REALTOR® will provide a net proceeds sheet which will show you all the costs associated with selling so you know exactly what you will have to invest in a new home.
C) Price competitively! A property’s purchase price will be a balance between the seller’s need to achieve the best possible return and the buyer’s need to get good value. Pricing too high will cause the property to sit on the market longer. If the property stays on too long, buyer will wonder what is wrong with it or you’ll have bargain hunters looking for undercut the seller.
3. Have a Strategy
Do you have a strategy to sell your home? It's important to have a consultation appointment to discuss all the possible options to get you from point A to B.
A) Do you need to list your home and secure a sale before you can go home shopping? If yes, you need to have a current market analysis done on your home and start prepping it for sale. We usually recommend going to see a few properties in your price range to give you confidence there will be something available by the time you’re ready to list. We also will try and negotiate a longer closing date so you have time to find your new home.
B) Are you in a position to shop for a home without selling your current home? If you’ve talked to your mortgage professional about the option of using Interim financing, then you can start looking at homes before you put your home on the market. Once you find the right house, you can either make a “subject to sale” offer, or offer with a longer closing date to give yourself time to secure a sale on your own home.
C) Do you have a backup plan? There are situations where you could have to move out of your home before you secure another (what if someone offers you a price you can’t refuse?) Or what if the dates don’t perfectly line up? We never want our clients to be homeless! We always recommend having a backup plan in place including lining up great storage companies, furnished apartment options or hotel suites that will give you some peace of mind through your transition.
Everyone's situation is different and no two transactions are ever the same. Our goal is always to negotiate the best terms possible for you, including the best dates when you’re trying to get from point A to be. If your head is spinning with options and uncertainty - this is where a great REALTOR® can go to work for you and give you a sense of clarity around your strategy.
4. Prepare Your Home
A critical step to ensuring a smooth move is properly preparing your property for sale.
A) Home Staging: we always recommend at least having a consultation with a home stager. They can often work with what you have and give recommendation of where to place furniture and what to get rid of. We believe in this service so much, we pay for it as part of our listing package.
B) Create that buying feeling! First impressions are everything and buyers will emotionally connect with your home when they drive by and walk inside. Make sure you have great curb appeal, you’ve done all the minor repairs and fixes around the home and it looks and smells great inside.
C) De-personalize. It's a myth that buyers "can use their imagination". Buyers will not see past your clutter, pet items, family photos or brightly coloured accent wall (to name a few). The more neutral the home is, the more they’ll be able to imagine themselves living there
We always recommend you to get in touch with your REALTOR® early in the process and long before you are ready to put your home on the market. A good REALTOR® can give you advice on the type of market we’re in, brainstorm strategies for making a move, and give you guidance on what upgrades and fixes would be worth making to your home in order to make a quick and easy sale.
If you're ready to get started or would like more information contact us now!