Tips, Opportunities & Dangers in Changing Real Estate Market
As a home seller, you have got to have many questions and concerns about the real estate market. There is a lot of talk out there from your friends, neighbours and the media. Here are some tips, opportunities and dangers of this quickly changing real estate market
that we are seeing. I know a lot of you are feeling anxious about the changes so I am here to provide clarity and guidance.
My name is Karen MacDonald from the Hamre Real Estate Team at RE/MAX Affiliates in Ottawa.
The biggest danger we are seeing right now is not recognizing the changes that have happened almost overnight. The pricing, the marketing, and the positioning strategies need to be changed too. Over the last 2 years, there was so much buyer demand a seller could get away with listing their home in less than showcase condition. Even if they hired an agent who wasn't a true seasoned expert the house would still probably sell quickly and with multiple offers received. Those days are few and far between, now, it is more important than ever that your home is presented to the market beautifully and strategically. Smart touch-ups, prep work, and landscape enhancement will go a long way for most homes even those that are already well maintained. As inventory creeps up and the buyer pool shrinks you want your house to shine in comparison to the competing homes on the market. Top-quality home staging, beautifully curated photography, and innovative video marketing are key to engaging today's more affluent buyers. This is a huge opportunity that too many sellers miss out on.
The pricing strategy for your home also needs to be completely different today than it was just a few weeks ago. Over the last 2 years, the asking price for a house was simply a starting bid and that was because there were so many buyers out there. Agents had a huge margin for error in pricing because the buyer demand was just so high. Once the house hit the market, dozens of offers would come in and the price would get bid up, often times hundreds of thousands over the asking price. Today, there are far fewer buyers so multiple offers situations will be less frequent and less frenzy, which means your selling price needs to be highly strategic. Sellers can no longer assume that their house will sell for the same price or higher than the neighbour who sold a month ago. The asking price has to account for the drop in buyer demand, rising inventory as well as rising interest rates...affordability is becoming a factor. All this to say that the asking price needs to still be attractive enough to entice as many serious buyers as possible to view your home. When the offer does come in it needs to be scrutinized much more carefully today, again, there is far less margin for error. Up until recently even if you accepted an offer from a buyer and they backed out, it wasn't such a big deal as there was most always a backup offer in the wings but in the coming months that may not be the case.
Although the market is cooling, we are still in a seller's market, it is just becoming a very different seller's market than we have seen over the last few years. As long as you are aware of the changing tide you can ensure that the right strategies are being used to generate an optimal sale on your home.
If you are selling your home or about to go to market or if you have any questions at all, reach out.
Karen MacDonald from the Hamre Real Estate Team at RE/MAX Affiliates
Hope to hear from you soon!