Changing Real Estate Market

Changing Real Estate Market

The real estate market has changed. Over the past few years as a seller, you’ve experienced a fantastic seller’s market. It wasn’t uncommon for properties to have back-to-back showings, multiple offers and sell significantly over the asking price

With that comes the belief that the market will never slow down. What ends up happening is two things; 1) that people start to pull back more than they should and miss opportunities because they try to time the market ,or 2) they will overextend themselves and purchase a property that is too expensive for them or one they don’t love. As we come into a more balanced market, here are three tips to help you on your real estate journey:

1. Know your numbers – It’s not good enough to say the house down the street sold for X amount two months ago. When you see the house, look at the condition, features and updates to decide where your home should fall on that line as an informed buyer or seller. In an adjusting market, you have to understand how much the market went up or down, and you need to adjust comparable sales with what is happening by today’s standards. From there, come up with a value range. Several tools are available to do this, including looking at comparable sales on the MLS system, tax records, market updates and statistics to come up with a clear picture of what’s happening in the area.

2. Not all neighbourhoods are created equally – When we are in a hot market, you’ll notice that almost every house starts to go up in price, whether it’s the beautifully renovated home or the house falling apart. When the market gets hot, buyers begin to think, “if I don’t buy now, there’s never going to be a home in the future.” They’re also competing to try and get in before they are priced out of the market. However, the opposite happens in a slower market. The premium neighbourhoods still hold their value, while the properties in less desirable areas tend to slow down and return to a baseline price. When you’re doing your search, it’s essential to understand the factors of the neighbourhood. Consider how the house looks, the neighbourhood’s future development potential and what has gone on in the past. If you are a seller, you need to put in the effort to properly present, market and stage your home to attract the most showings.

3. Negotiation – Negotiation is one of the essential factors in getting what you want. Over the last few years, and especially since COVID hit, we have seen the majority of houses sell for over list price, with little to no conditions set. It was not a healthy market. Buyers had to offer prices at their maximum budget when the house may not have warranted it, and sellers who were selling high were also buying their next property at an elevated price. A few other factors to consider with an offer are the conditions surrounding the sale of the property. It can include the closing date, finance approval and home inspection. Meeting somewhere in the middle is where the negotiation comes in. As the market has readjusted, getting what you want comes with some work. The goal is for a win-win situation for both parties.

Working with a real estate agent can help alleviate the stress of this work. Let’s set up a meeting!