Increasing interest rates have impacted Toronto homes and condos in the last few months. We have seen prices fall as much as 20-30% in some regions of Toronto.
As a Toronto homeowner, it is essential to understand how to adjust your home selling strategy as prices are falling in the city. The homes that look the nicest and are priced correctly sell the fastest and for the most money compared to their competition in the neighbourhood.
We want your home to stand out.
Adjust Expectations & Get Ahead Of The Market
We can appreciate that many sellers have an expectation that their house should sell for more than what today’s market is. It wasn’t too long ago that Toronto real estate hit an all-time peak in value. It’s no wonder that many homeowners are tethered to that price tag. That said, it’s important to acknowledge where we are today and that we cannot go back in time. Also, it’s integral to consider what you are doing next. If you are moving up the property ladder to a more expensive neighbourhood or house, you are saving money on the difference based on the price drop.
The sooner a seller can adjust their expectations, the faster the house will sell for more money than their competitors. How? It’s essential to allow the market to land on your home value versus chasing the values downward. This may sound counter-intuitive to some, but this is the best way to sell your property during a real estate market that is seeing prices fall. We can discuss this in person if you have questions about what this entails. We have helped sellers succeed in other downturns in Toronto’s real estate market over the years – this experience will help you sell your home for the most amount of money in today’s market. You cannot risk being a step behind other houses in your area – you need to get ahead of them so that you do not compete to the bottom price. Also, it’s worth noting that the overpriced neighbourhood will help you sell your accurately priced house – it’s arguably the best advertising tool.
An Accurate Home Evaluation
To truly understand the current marketplace, you must get an accurate market evaluation range for the home. You need to know what is happening in the neighbourhood. It’s our job to let you know what the activity has been like in the neighbourhood. We will adjust the value range if we experience a rebound in the area. Remember that the real estate market can change daily as buyers are absorbed and new buyers come to the buyer pool with a new value mindset. Most agents do not know how to price a house in a market that is not charging upwards in price with multiple offers (that way was easier, but today’s market requires a lot of skill.)
➤ Every good investment needs a well-planned strategy. Start preparing with the following:
- 2022 Is The Year For Buyers To Buy in Toronto
- How To Choose A Real Estate Agent
- The Importance Of A Home Evaluation
- 5 Tips For Selling Your Condo
Offering A Buyer Agent A Higher Commission
This is not something we commonly do; however, depending on the circumstance, this could give an edge…this could be better than a price change. It may better serve you as the seller to offer a slightly higher commission than your commission versus lowering your asking price. It’s worth running the numbers to see what would net you the most money. We do not recommend this for all homes, but this may be a good approach if your home has been on the market for a long time and does not have a unique point of difference.
Work With The Offer That You Get
We are big believers that knowledge and skill are superpowers in real estate. Know the facts so that you can be armed with the correct, accurate information about the value of your home. The more you know, the better you can negotiate the price. Don’t get suckered into the poor tactics of bottom-feeder buyers. It’s our job to know what your home is worth and how to negotiate a deal in your favour. Depending on where the real estate market is, we need to let you know whether the market is slowing further and that it’s necessary to work with what you have. If, on the other hand, the market is beginning to rebound, even for a short-lived rebound, then we may direct to hold to the higher price. Full transparency and professionalism are essential here.
