The Market Has Changed. Your Selling Strategy Should Too.

May 19, 2022 | Real Estate Strategy

This topic is becoming a theme in this blog because the state of the market is on everyone’s mind. Is the market crashing? No.

Are prices way down? Also no. They’re down from the beginning of the year, but they’re still up from last year. However, the market has changed. Due to higher interest rates and lots of chatter about a softening market, buyers are less motivated now than they have been in a while. If you’re a seller, your selling strategy needs to change as well.

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How to sell your house in West Toronto right now:

Spend Even More Money Getting Your House Ready: This is counterintuitive but so very important. Yes, even though prices are slightly down, you still need to spend money to sell your house. Your house needs to look like the belle of the ball. Your house needs to be so beautiful that it overcomes all buyer hesitation. That means consult a designer, paint your house, stage it, and declutter. Do everything we always advise, but do more of it now.
Competitive Pricing: Even if your house is the nicest house in the world, you still need to price it low for a bidding war. This process is still working for houses that are appealing to buyers. Your house needs to be the nicest and cheapest house on the market. It will still likely sell for a good price, as there is often very little connection between the listed price and the sold price.
Open House: We stopped doing open houses during the height of COVID and thought we would never go back. Boy, were we wrong. We’re back to doing open houses because they are again one of the most effective forms of marketing. These are especially important for getting hesitant buyers into the houses without committing to an official showing. We are still being cautious of COVID by keeping as many doors and windows open and encouraging mask-wearing.
Be Realistic: Your house won’t sell for the same price it would have gotten in January or February 2022. Be realistic about your selling price by intentionally reducing the amount you expect in your head. This is especially important if you plan on purchasing a house first.
Don’t Panic!: This is very important. If your house has been well prepared, it will still sell. If you don’t get any offers on offer night, or if your house is taking longer to sell than you expected, don’t panic.
Hire a Local Agent: A lot of movement in and out of the city has meant that sellers are using out-of-town real estate agents. This is very dangerous because non-local agents don’t know the nuances of value in your particular neighbourhood. Hire an agent who really knows your area and who has personally walked through all the houses that compare to yours.

This is a temporary lull in the market driven by several factors. It is not a sign that prices are going to drop dramatically.

As always, stay safe
Robyn Vandervennen