Have the scales been reversed? The market in June is definately much different than that 6 months ago. While Royal Lepage thinks that prices will continue to rise 15% in 2022, there are many
Did you hit the bulleye?
Dated: June 14 2022
Most clients when selling their homes are focused on how much they will receive. Fair enough, we all want the most for our homes. Generally we have a talk, they tell me how much they want to get. I then come up with comparables that will justify the price that they are looking at and we will come up (or not) I then use date to share what I feel is a reasonable expected outcome of working with me. One thing that often stands out is that the numbers that the client uses comes from knowing how much the neighbors were asking. I know from experience it is important but not as important as the current market reality and the sold price. Sold prices are more realistic than asking price since you can ask anything but may get more, less or nothing. Have you ever asked your boss to double your salary? You can ask but please let me know how it went.
Now how do you measure the success of the listing price? The bulleye represents being dead on with pricing. At fair market value you have buyers which culminate in an offer in a short period of time. The further out you are from the bulleye the fewer the buyers and the further you are from what the market feels in fair. The longer it takes means the same thing.
I recently had a property listed where the clients were insistant that their property was worth lots of money. No matter what I told them, showed them etc... they knew better. Almost 3 months on the market, 150 leads, 5000+ hits on the listing and not one person wanted to go and see the property. Why? It is not the economy, or the interest rates or the election. Just price. Yes over time as values continue to increase the price may get closer to their expectation but as a proffessional, it was best to let these clients find someone wanting to spend lots of effort to market a property that would not sell. I sometimes say that if you want $1, I will buy it from you. At that price you will have a line up around the block looking at the property. The same is true if you ask too much. Nobody wants it. You may wonder why I accepted the listing and the answer is that for a while, the market was so hot that nothing made sense. People were buying anything they could find at prices never imaginable.
Here is a good rule that I often discuss with my clients. It goes something like this: 10 days or 10 showings. If you have 10 showings and no offers, it is over priced. If you let it sit for 10 days and do not get 10 showings, it is over priced. This rule is not always accurate but is a good basis for getting your house sold for top value. Common sense always prevails since there are always exception to the rule but at the end of the day you are hiring a proffessional to get your house sold
35 Years of Sales Experience. B.Comm in Finance. Allan has worked in the manufacturing sector and has worked nationally from coast to coast. He has and continues to train and provides coaching a....