Working with Sellers in this multiple offer frenzy, which we have experienced these past fourteen years in the GTA, was a “no brainer!” Put a price on the home …. stage it …. take a few pictures …. put up your street sign …. do an open house …. allow viewings for a week or so and then have your Seller consider upwards to twenty five offers from Buyers. Believe it or not some agents had the unmitigated gall to list properties on TREB for $1.00 …. really! As i suggested a “no brainer!” The Seller obtained a premium price for their home. In far too many instances though, the Buyer over paid for the home. This is not a reflection on either the Seller or the Buyer …. it is economics! The manifestation of supply and demand. As an agent, the commission was generous for the amount of effort required in that market! We appear to be settling into a more balanced market. Buyers are becoming more savvy and less apt to overpay for a home. The basics of market preparation still hold true but now, as an agent, we must properly price the home for sale. Different GTA locations have an average “days on the market” statistic. If a home is overpriced it will go beyond the norm and become “stale dated.” This may require a price reduction or numerous to facilitate a sale, which is disastrous for the Seller. If a home is under priced it will sell too quickly and too low, which is also disastrous for the Seller. So when working with Sellers now it is more important than ever to price the home right!
I think that most people feel relieved that the market is more stable and predictable. As a buyer, competing in a multiple offer market can be very stressful and disappointing. As a seller you never know exactly what to expect to sell your house for. Usually at the end you get more than what to you expected, but sometimes if not enough people bid on the house you might end up disappointed. As a Contractor I had clients that ended up paying more than what they originally planned for their house and as a result postponed some renovations or reduced their reno budget.
Getting a home priced correctly, can be one of the most important things when listing a home. Emphasing that time is money, is most important for the owner to understand.