You recently had thought about putting your Vancouver home on the market, or you did and it didn’t sell.
When you list your home you must pay attention to all of the following. Also if your Vancouver home or condo did not sell, it is most likely because of one or more of the following:
– Realtor ®
It’s easy to name price as the reason. Many realtors emphasize to sellers that they must reduce the price to sell. While this is often true, it isn’t always the case.
The condition of your home plays a significant role. Did your realtor do a
Did your realtor prepare a marketing strategy specific to current market conditions? Many realtors have the same marketing plan no matter what the market conditions. Their plan often consists of putting the listing on the MLS, putting up a sign, running a few ads, and hoping for the best. This makes no sense, and you deserve better.
We want to make sure that when you’re ready to come on the market again, you will sell for the highest price in the quickest amount of time.
Isn’t that what every seller wants? We are confident we can help you achieve this goal.
We will try to answer these questions and more below.
Why are we giving away such a valuable resource? Our philosophy is that the best gift we can give to others is the gift of information! Our hope is we will earn your trust, so when the time comes for you to sell your home, you will be happy we are your trusted advisors.
To Your Success!
Richard Morrison, creator of Strawhomes.com
Why Pricing Your Home Correctly Is So Critical
Knowing How to Price Is Priceless.
Pricing your Vancouver home is the most important part of the selling process. If you price your home incorrectly then nothing else you do really matters. You could stage your home beautifully but that will not make a difference if your home is overpriced. Pricing is the most critical piece of the selling process, and a mistake could cost tens of thousands of dollars.
Why is price so critical? Simply put, the price of your home determines which buyers will come to look at it. The price is like the bait on a hook when going fishing.
Different bait attracts different fish, and fish won’t bite the “wrong” bait, no matter how much you want them to.
The price of your Vancouver home is the bait for buyers.
The last time we had a real slowdown in the market and we saw someone cost themselves money was during the U.S. banking crisis in the spring of 2008. Markets had been rolling along well until then. We had a downturn, and the property market dropped about 8% on the west side of Vancouver between 2008 and September 2009.
In the spring of 2008, when the market was still good, we worked with a couple preparing for retirement, who wanted to list their home with us. We suggested a listing price around $1.8 million but they decided to list it at a higher price of $1,998 million. The property sat on the market, and they eventually sold for $1.6 million in September 2009. They could have sold for $200,000 higher if they had listed closer to the real value of the home.
We had two showings a week on this house for more than a year and a half, and we never got a single offer. That’s because the wrong people were coming to look at the house. The people looking could afford $2 million, but our house didn’t stack up against the competition. To make matters worse, the people who could afford $1.8 million did not come to look at the home because they didn’t think they could afford the house listed at almost $2 million.
By the time the sellers finally came around to a realistic asking price, the market had shifted downward, and they cost themselves $200,000. If they had listed properly to begin with, they would have sold it a year and a half earlier and could have got on with their life and their plans. They essentially cost themselves $200,000 of their retirement money.
Put yourself in the buyer’s shoes. Let’s say you look at five homes in a single day. The first four you look at are all well priced around $2 million. Then you look at an overpriced home, which doesn’t compare to the other four homes. Maybe the lot is smaller, or there hasn’t been as many updates. The bottom line is the over priced home doesn’t stack up against the competition.
No one can predict when a declining market will occur, but you don’t want to follow the market down and sell for far less than you could have.
Determining the Value of Your Home – Tips for Selling Your Home
We determine the value of your home through a detailed and very specific comparative market analysis. We start by analyzing market conditions. Next, we look at homes that are similar to yours that are currently for sale. Then, more importantly, we look at homes like yours which have recently sold.
After making adjustments for any differences, we end up with the market value of your home.
Of course, you can list your home for whatever you want. It is your home! However, as you have now seen, it makes no sense to overprice your home. These are valuable tips for selling your home, especially in a down market!
1. Market Value – The amount a ready, willing, and able buyer would pay for your home in today’s market.
2. Assessed Value – The value the city property tax assessors establish in order to determine your property taxes.
3. Appraised Value -The value a bank appraiser determines when a buyer is obtaining a mortgage to purchase your home. This value is in line with the market value.
Two Questions Every Buyer Asks
We have worked with hundreds of buyers over the years. Every single buyer asks these two questions when looking at homes:
1. How much is the asking price?
2. How long has the home been on the market?
The first question is obvious, but why do they ask the second question? If a home has been on the market for a long time, a buyer assumes one or both of the following:
The home is overpriced. There must be something wrong with the house.
Often, the buyer is right! If a home has been on the market for longer than the market conditions suggest it should, the home is overpriced.
Homeowners frequently ask us if the assessed value of their home is any indication of the market value. The answer is a resounding “no,” and here’s why.
When do you receive your assessment notice in the mail?
It is usually in January. When do you think the workers in the assessment department at the city hall gather the data and information they need to determine your assessment? They do so during the previous summer months.
When you receive your assessment notice in January, the information is already six months old! Often, the market value of your home changes month to month! Your assessment is outdated in no time at all.
Here’s another question: Has anyone from the Property Tax Assessment Department ever knocked on your door, asking to have a look at your home, so they can get detailed data to create your tax assessment?
Of course not. The city does not have enough manpower to do this.
Instead, the Assessment Department determines the lot value for your home. This number is fairly accurate, except that it’s six months old by the time you get it! Next they calculate what it would cost to build a new home the same size as your home, using a cost-per-square-foot formula.
Lastly, a depreciation formula takes into consideration the age of your home, and the result is the assessed value of your home. This value is not relevant to the market value.
There Are Three Different Types of Markets
When you sell your home, it will be during one of three different markets. The type of market is determined by the list-to-sell ratio, which is calculated by comparing the number of homes sold in a month to the number of listings in that month.
1. Sellers’ Market – List-to-sell ratio higher than 20%
2. Balanced Market – List-to-sell ratio between 12% and 20%
3. Buyers’ Market – List-to-sell ratio below 12%
Weeks On Market vs % Of Asking Price
Data obtained from the National Association of Realtors
In a sellers’ market, the times given would be less, and in a buyers’ market the time would be a bit longer. The data shows how critical it is to price your home correctly to obtain a quick sale.
Summary of Overpricing Dangers
When you overprice your home, many potential buyers will not even look at it, thinking it is out of their price range.
Those who do look and are shopping by comparison, will see that the overpriced home does not stack up to those priced correctly in the same price range. Your home will help sell the house down the street!
Since a bank appraisal is required for a buyer obtaining a mortgage for the home they purchase, it is futile to price a home for more than it is worth.
Homes left on the market for extended periods of time become “stale,” causing buyers to make assumptions.
Overpricing tends to dampen the enthusiasm of realtors working with buyers, making them less likely to want to show an overpriced home to a motivated buyer
Overpricing lengthens the marketing time and results in a lower selling price than you would get if your home were priced correctly from the start.
Do Not Overprice!
In a declining market, the length of time an overpriced home is for sale, market conditions could change, and you could end up “following the market down.”
Showcasing Your Home The Right Way
There are three components to the process of preparing your home for coming on the market:
1. Use the time you have before coming on ‘ the market wisely.
2. Spend your budget on the right things.
3. Stage for success.
Use the Time You Have Before Putting your Home on the Market Wisely!
Even if you don’t plan to sell your home for a while, starting on some things now will make life so much easier when the time comes to sell.
Anyone who has lived in the same home for a long time knows it’s an understatement to say you have collected a lot of “stuff.” Everyone has a closet, a room, or even a garage or attic filled with things collected over the years, most of which they never use!
The biggest favour you can do for yourself is to start decluttering your home while you have time. Many people find decluttering to be a daunting task. If that describes you, there are people who specialize in sorting, decluttering, and organizing. We have the contact information of some great people who can help you with
A second area that is smart to focus on is the yard and exterior. If you have some landscaping, pruning, or lawn work to do, or if the outside of the house needs power-washing and sprucing up, do it early, so it is one less thing to stress about. Remember, the first thing prospective buyers will see is your front yard and the front of your house. First impressions are so important, and you only have one chance to make one. Hope you enjoyed these tips to sell your home. Make it a good one!
Like in any other Canadian real estate markets, sales for homes are on the downward trend in the Canadian homes region. This has been occasioned by hard economic times and falling sales volume. Most homeowners are having to lower their prices and this has led to reluctance from homeowners when it comes to selling their homes.
Many of the buyers too are not ready to buy homes in the region due to harsh and changing economic climatic conditions. However, there are a number of steps that homeowners may take to help them sell their homes faster and at very competitive rates.
The first step should be to determine the reason why one is selling their Vancouver home. This would serve as a motivational factor when it comes to finding a buyer for ones home and when negotiating the price.
The seller also needs to get their home ready for viewing before putting up the advert for the home. This can be done by doing the necessary repairs in the house such as repainting of the walls and fixing broken window glasses and doors. Owners who do not furnish the interior and exterior of their homes properly are likely to send away potential buyers.
One should always do some research on home prices in the area before setting the price. This is because homeowners always want to make the highest money out of the home sale. This may lead to overpricing their homes which has the effect of scaring away potential buyers and the chance of chasing down the market. This happens often in Vancouver housing market.
One should also hire an experienced and qualified realtor. This is because the outcome of any home sale usually depends on the skills and experience of the realtor in the market. The right choice of a realtor could mean high prices and short duration for sales to the homeowner.
The seller also needs to be honest enough and disclose everything about their home to the potential buyer. This puts the buyer in a position to make wise decisions concerning buying the home and thus avoiding legal battles that may follow when the buyer feel that they were cheated by the homeowner.
Spend Your Budget on the Right Things
Many homeowners think there are renovations and updating they need to do before selling their home. While this is true some of the time, often It is not!
Ask anyone what the two most important rooms are to renovate, and they will answer, “Kitchen and bathrooms!” These are very important rooms to focus
We strongly recommend you get a
Take Helen and Dan’s story as an example.
Helen and Dan lived in their home for more than 25 years and raised their family there. The kids were now married, and the house became too big for the two of them. They were ready to downsize.
They planned to put down new flooring, paint the interior, and upgrade the bathrooms with a budget of $50,000. After meeting with them and going through each room, we determined they did not need to do these renovations. We recommended they spend a fraction of the cost and have their home staged instead!
Helen and Dan were a bit sceptical at first, but they trusted our advice. In the months before coming on the market, they worked hard to go through all their stuff and declutter. Their home was more than 5,000 square feet, so there was a lot to go through!
Professionals were hired to spruce up the yard and put a fresh coat of paint on the front door and trim. After meeting with our stager, Helen and Dan felt very comfortable and went ahead with the staging.
Their home sold quickly for a price they were delighted with. Best of all? They only spent $10,000 dollars of their $50,000 renovation budget, leaving $40,000 in their pocket! Helen and Dan were so glad they had the
UP NEXT: The Ultimate Vancouver Seller’s guide
Guys, if you are reading this, you are probably frustrated that your home languished on the Vancouver real estate market for sale but failed to sell. It can be discouraging to do all that work and end up in the same place – wanting to sell but no offers. The challenging part is figuring out exactly why your home didn’t sell so you can get it right and get it sold.
That’s where I can come in to help with no obligation.
My name is Richard Morrison – A RE/MAX Hall of Fame, Medallion Member, and I sell real estate in Vancouver for 20 years.
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