Privately selling a house can be a complicated process, from the paperwork, showings, price negotiations and home inspections to the closing process. Advertising the wrong sales price can make or break how your home does on the market. With hundreds of new listings coming online each day, choosing the right real estate agent is crucial to ensuring your set the right price – the first time.
Before listing your home, your real estate agent should take the time to educate you on what a realistic sales price range is for your property. We know every seller wants to get a great return on investment on their real estate property, but overpricing your home won’t get that done.
Although you may be looking for a specific price, a smart strategy may be to list your home a little under the market price (to ensure a quick sale) instead of allowing your listing to expire. Expired listings are when the initial contracted period with your selling agent has expired, and your property still hasn’t sold.
Not sure if your agent is recommending a fair and accurate listing price? Follow these tips about the dangers of overpricing your home, what your home’s worth, and why every seller should aim for one. If you still have concerns, get a second opinion with Paul Rushforth’s Real Estate team.
Or, sign up for our Ottawa Home Value Estimator report if you’d like to keep up to date on your home’s value.
What Are The Effects Of Overpricing Your Home?
If the number of showings is down, and your home has spent too long on the market, it’s most likely overpriced. When a property is priced, even a few percentage points outside the true value range, it leads to fewer showings, with the result of fewer buyers touring your home and, ultimately, fewer offers.
Selling your home quick is the key. We want to transact quickly and reduce the stress that comes naturally just from being on the market. More importantly, we have found that every listing has good market momentum for only about 4 – 6 weeks. Then the traffic will start to slow (if it ever began).
Once your overpriced home has overstayed its welcome, you’re at risk of entering expired listings. This outcome can be a turnoff for both buyers and their real estate agents. Although the home may be in excellent condition, the assumption is that there’s something wrong with your property. Why else would it still be on the market?
Ensure you’re asking your real estate agent as many questions as possible. They’re the experts, and you hired them to handle a crucial life decision and significant negotiation. When choosing the right real estate agent, make sure their intentions are honest. Their number one priority shouldn’t be making a huge sale (although that’s nice), their priority should be meeting your needs and getting your home sold.
How Do You Know The Market Value Of Your Home?
According to Global Property Guide, house prices in Canada’s eleven major cities (including Ottawa) rose by 2.51% during 2018. And it’s only grown from there. With fluctuating prices, you want to ensure you’ve accounted for the market value of your home when determining the home’s worth.
When determining what your house is worth, performing a comparative market analysis with your real estate agent helps you both understand the market and the buying and selling expectations.
Comparative market analysis helps you and your agent to narrow down the trading range. This process assesses the condition of the home, location, related properties and their selling prices and many other factors that will affect the final market sale price.
You can learn more about pricing your home right the first time in our detailed guide.
How To Get Multiple Offers On Your Home?
Pricing your home below market value isn’t only a quick solution for selling your home, but it can also result in multiple offers. Once you and your listing agent have evaluated the active listings on the market and the condition of your home, you can discuss the option of pricing your home under market value.
Multiple offers are when numerous buyers submit an Offer To Purchase on a property, which gives the seller a variety of options. In some cases, multiple offers result in driving the asking price over asking, but this shouldn’t be expected.
It doesn’t matter if you’re in a buyer or seller’s market, listing your home below market value may be a valid option for your situation. Don’t exclude this possibility if it’s presented to you; getting your home sold quickly will save you significant stress!
Pick An Agent Who Knows The Ottawa Market
Find yourself a real estate agent who knows what they’re talking about!
We know that figuring out your home’s true price range is a complicated process, so please feel free to contact us to arrange an in-home consultation. You’ll learn about how the market’s doing right now, and how your home measures up compared to similar properties in your area.
Whether you’re buying or selling, Paul Rushforth’s team of real estate agents know best!