You Should Sell Your Home Right Now!
Posted on April 28, 2009 in the Selling Homes category
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ATTENTION:
Frustrated Sellers…
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If Your Property Is Not Selling As Quickly As You’d Like, Do NOT Drop The Asking Price One More Penny, Until You Read This Free Report…  |
Confusion is ramped in the Toronto real estate market and potential sellers are not getting all of the right information to make sound decisions. Due to the same reasons why home buyers should be buying a Toronto home right now you should be selling your home right now. It is time to expand your net worth and create some permanent wealth.
Toronto home owners are hesitant to sell because they don’t think they will get all of their money out of the investment. For a lot of sellers this really shouldn’t matter. Psychologically they don’t want to lose money. In reality it isn’t lost. It will just be transferred to a property or properties that will take advantage of the current market conditions.
Sellers can actually take advantage of the low interest rates, the buyers demand for good product, the lack of good product, and the current possibilities that exist to expand their net worth.
In a lot of cases I think a seller would be surprised at how well they can still do with selling today, even if they were taking the money and running. There has been a lot of media manipulation to have people think we in central core Toronto, are in a really bad market. It just isn’t true. The average price for March transactions was $362,052 – down less than five per cent from the same month last year, as reported by TREB.
The media has been manipulating the statistics to strengthen the story that they want to tell. They are using facts from certain areas in Canada that had big housing bubbles and making them look like they represent the whole country with big bold titles. I think that the media is doing this to increase their viewership stats so that they can simply sell more advertising space.
One benefit for someone wanting to list their Toronto home right now is the ability to leverage stagnant properties that have been on the market for a long time because the sellers aren’t being realistic with their prices. By pricing your property appropriately you can make you listing look like much better value.
These same unrealistic sellers existed in the busier markets but they just weren’t given much attention and they never should have listed the home for the price that they did in the first place. Now the media is using them to support their stories. I could ask $11,000,000 for my personal home but it would not sell for even 10% of that asking price. This doesn’t mean that the market has come down 90%, it just means that I was very unreasonable with my initial price offering. These sellers exist in all markets but in better times they don’t get paid any attention.
Pricing your Toronto home is certainly the key to selling for top value in this market, there are a lot of agents who have only worked in the hyperactive real estate market that we have seen over the past 10 years. They never learned to price when you don’t have 10 offers to choose from. Try to tell a realtor that has 7 or 8 years of experience that they don’t know what they are doing and need to go back to the basics. Their egos just won’t accept that they need to change the way they work.
These Toronto real estate agents go on with their unfounded prices until the property becomes stigmatized and the evil “Price reduction” is necessary. Price reductions are extremely damaging because you need to make reductions in 10% increments in order to make them effective. Otherwise you just waste more days on market which is the key weapon for low ball offers. If aiming high and lowering the price over time is the strategy you want to use, you will end up selling for less than if you had made the initial price offering as close to reality as possible.
Sellers can take advantage and upgrade their home by selling now and buying something that is more expensive, something that would have been out of reach before. They can also take advantage by diversifying their holdings and buying an income property. Interest rates are at their lowest in decades so now is the time to expand your personal net worth.
Sellers can also take advantage of the surge in buyers and confusion among sellers by just listing. There is a lack of quality inventory on our market. Good homes are selling well, it doesn’t have to be completely updated but buyers are more likely to buy something that is mostly finished than something that needs to be leveled.
I don’t have a crystal ball but this is the situation as I see it right now.
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3 Responses to “You Should Sell Your Home Right Now!”
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You bring up a good point. There is currently a surge in buyers because they think this is a good time to buy. Meanwhile there are not a lot of quality sellers because they are holding out for the values to go back up. Still, I’m not sure if your advice works for everyone. It depends on how much you initially paid for your home.
Evan,
The situation that you describe in Toronto is the quintessential example of what drives marketplace dynamics and consumer behavior: PERCEPTION. There’s an old saying that “reality is for management and perception is for marketers.” Even though the reality that the sale of their homes may provide the opportunity to invest in something more profitable, the perception that the current marketplace is sour in any and every way will be the ultimate influence. We see this in the stock market on a daily basis and it is again about perception and confidence in the market. Do companies’ strength and welfare waffle on a daily basis? Not usually. Does the stock market? Yes. Does consumer confidence? You bet. In short, the only way to change prospective sellers’ behaviors in this economy is to change prospective sellers’ perceptions.
I think the largest factor in any “declines” in the Toronto market have to do with people who were speculating 2-3 years ago. There seemed to be a view that you could throw up a condo anywhere and it would appreciate by $50K in the first year. I really don’t have much sympathy for the investors who got caught here.
In the area I live in (north of Toronto), there has been some decline in prices, but desirable, well located homes really haven’t been touched at all.
At the end of the day, I think part of the problem was that people bought into the notion that homes were investments that they happened to live in, rather than homes that happened to be investments. There’s a world of difference.