You recently had thought about putting your Vancouver home on the market, or you did and it didn’t sell. Now what?
When you list your home you must pay attention to all of the following. Also if your home did not sell, it is most likely because of one or more of the following:
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 room- by-room review to determine inexpensive and simple ways to get your home market-ready? You have one chance at a first impression; you need to make it a good one!
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.
Also, you may have questions on your mind like:
1. Should you Sell Your Own Home Privately?
2. When Should I consider Selling my home with a Realtor?
a. benefits of using a realtor
b. realtor commission rates in vancouver bc
3. Tips for Selling your Home.
a. selling property tips
4. When is the best time to sell a house?
5. What are the costs of Selling a House in BC?
6. What are the costs of Selling a Condo in BC?
7. What do I need to disclose during the sale?
8. What do I do after an accepted offer?
c. how much are lawyer fees when selling a house?
9. Final Best Things to do when selling a house
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!
Why Pricing Your Home Correctly Is So Critical
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 $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!
Did You Know Your Home Has Three Values?
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 hornets 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:
Use the time you have before coming on ‘ the market wisely.
Spend your budget on the right things.
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 purging these areas while you have time. Many people find this 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 this, if you are interested.
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!