Dear David,
We listed our home at an optimistic price a few months back. We figured we could drop the price later, or if a buyer liked the property, they could make us an offer. We received an offer out of the gate, but thought it was too low and didn’t accept it. Looking back, we’d be happy to have that offer now! It’s been our dream to downsize, leave the city, and spend more time travelling. With the house still unsold, should we put those plans on hold, or re-list in the spring once the market picks up? – IN LIMBO
DEAR LIMBO: When the leaves start to turn, we typically see an increase in activity from buyers and sellers who want to move before the holidays. Fall tends to be a busy season, so I wouldn’t assume you need to wait for spring to try and sell your home.
After decades in the business, what I know for sure is that real estate markets are always changing. Locally, things were fairly predictable before 2020, aside from the market corrections in 2008 and 2017. There was nothing to prepare us for what took place during and after the pandemic, when a dramatic increase in property values changed expectations for buyers and sellers. Prices peaked in early 2022 and then declined, and today’s qualified buyers are not prepared to support those high values.
Early on you rejected an offer that looks attractive now, and hindsight is 20/20. You made a decision based on what you knew at the time. As the real estate market shifts, it’s important to have help from an experienced Realtor. Selling homes as listings are flying off the shelves is one thing, but making a home stand out in a sea of competition is another.
A pricing strategy that starts high with the option of moving down sounds logical, but is flawed. Buyers rarely put offers on homes they think are overpriced, and tend to just move on. When a new listing hits the market, sellers have one chance to catch the eye of buyers who’ve been waiting for a home like theirs. If the price is too ambitious, they may turn off their most promising pool of potential buyers. Will the spring season bring a new wave of interest? Possibly, but spring is not a magic pill, and the market doesn’t necessarily follow the calendar.
PRO TIP: Remember why you want to sell your home. Your dream is to downsize, leave the city and spend more time travelling. If that’s the life you want, be careful about putting things on hold in hopes of prices going up in the spring. Hope is not a strategy. Look at the comparable homes that have sold in your area in the last couple of months, and ask, “if we listed today, what price would buyers see as an outstanding opportunity?”
Price for the market you have, not for the one you’re nostalgic about, or the one you hope to have next spring. Sometimes the most expensive decision is putting your life on hold while you wait for a price that never comes. #Advice #AskDavid #TheNegotiator
David is a top-selling Broker in Kitchener-Waterloo Region. He works personally with you when selling or buying your home. Moving? Get it right. Ask David today! Call or text 519-577-1212.