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Price Is Key!!
Okay. Clearly the market is not the same as it was a year ago, or even 6 months ago. This is not a tragedy, or a reason to panic. The real estate market changes CONSTANTLY, even without factoring in economies and seasons of the year, it is a fluid creature that just changes. All that means is that you (and/or the agent representing you) should do a little homework to know what's happening with the market when you want to buy or sell a home. I've written about this before, but now, more than ever, it's really important to price your home properly if you want to sell!
In previous years if your list price was off a bit, the market would wash it out with the business that was happening. Now, with so much inventory for buyers to choose from, an overpriced home will be noticed as such. This can be a really tough thing for vendors to accept. Their home has emotional value as well as monetary value. The idea that the $30k they've spent on renovations, maintenance, or upgrades might not necessarily mean that they can list their home $30k higher than your competition is a tough pill to swallow. It's a necessary one, though!
If your priority is selling your home, listening to the advice of your REALTOR®regarding suggested list price is paramount. If you have a bottom line of what you "need" to get out of the sale, and it doesn't line up with what experienced people are telling you it is worth on the market, then perhaps now isn't the best time to list your home.
Just like with anything, the price should match the product. A home priced at the absolute top (or above) of the price range for homes like that in the area should be justifiable. It should need no work done, be clean and staged well, and basically beat the pants off of the competition. If a home still needs plenty of work done to it (even seemingly little things can add up) it should be priced accordingly. Remember that a buyer might not care what you've put into a home, or how many memories you have there. I've written other blogs on the danger of over-developing a home; this fits into that line of thought quite well.
Another thing to remember is that assessed value, appraised value, and market value are often different. What the city assesses your home at, versus what an appraiser would say it's worth, versus what a buyer is willing to pay for said home don't always match.
What you should take away from this is that the real estate market in Winnipeg is still busy, and people are still buying homes! It's just really important that your pricing and marketing strategy are working for you, instead of against you. Working with an agent you trust, and listening to his/her advice is a great way to start!
Ethos Realty Inc.
755 Osborne Street
Winnipeg, MB R3L 2C4