With the real estate market normalizing in the summer months, we are seeing different strategies emerge with people buying and selling homes.
Here are some strategies that I believe are timeless in any market:
1. When selling your home, price it as close to the market value as possible.
Sellers often have two fears: one is selling for too low, and the other is not selling at all. In a market where inventory is still at historic lows (ahem, this market), a well-priced property will sell.
If you happen to under-price a home, you will still see multiple offers. An over-priced home will sit on the market and get stale. No one likes stale bread, hence why it's always on sale. People expect a deal with a stale listing too; the only offers that come in are low-balls or duds.
On the flip side, a strong list price is exciting, interesting, and attractive (especially coupled with a strong marketing plan). It will generate the most interest, have the most prospective buyers, and sell the fastest for top dollar.
Sometimes, the pricing strategy is off. Maybe you are listed on the higher end of the recommended range and you're not getting the traction you hoped for. Don't let things linger, rather, be decisive and adjust. You should have your comfort range regarding the sale price and there should be some flexibility there.
This leads me to my next point...
2. When looking to buy a home, look at the features that will always remain attractive.
These are things like proximity to schools, parks, and walking paths. Other things include lot size, a view, and being on a quiet street. Inside the home itself, understand how the square footage compares to other homes in the area. Also, pay attention to the baseboards, as they'll tell you how well kept the home is. Take inventory of the neighbours on either side – how is the upkeep? Be a detective when you're house-hunting, and you'll be glad you did when it comes time to sell.
3. Stop trying to time the market.
This advice is for both buyers and sellers. The more extreme an opinion is about the market (in either direction), the less likely I trust it. I hate to say it, but if the market was predictable, we'd all be living a perfect life. No one can predict the future and in some instances, the exact opposite happens. Remember April of 2020? Top forecasters predicted a crash, but the opposite happened instead.
Here's what I think you should do. Have a real conversation with yourself and people you trust. Play devil's advocate and discuss the pros and cons of your next move. Get professional advice from a Realtor and a Mortgage Broker. Examine your finances, do a boring budget and finally, make a decision that works best for you; in any market.
Because if you make a good choice, chances are you'll stick with it for the long term and that is where the gains are made. This sounds like marriage advice too, but I think I'll stick to one area of expertise.
Have a great August and see you next month!