How to Price Your Home Without Leaving Money on the Table

If you want to sell your home in the coming months, you'll be wondering about pricing your home correctly. Setting your home price fairly has a major impact on how fast your home sells. In some cases, it will make or break a sale. There's no overestimating the importance of this step when setting your house up for sale, especially now that the real estate market is beginning to show signs of slowing down after the rollercoaster of the pandemic years.  It's no secret that home sellers have enjoyed seller's market conditions for a good couple of years now. A severe imbalance in the supply and demand of housing led to surging home prices. Home sellers in in-demand areas didn't have to think too much about pricing their homes correctly, with many homebuyers so desperate to secure a property that they would agree to home prices well above what was normal or average for that particular area. However, at this point, all the signs are pointing to a housing market that's slowing down, with the supply-demand ratio slowly rebalancing. This means that pricing your home correctly is once again paramount if you want to sell your home this year.   Why is pricing your home correctly so important? Pricing your home correctly can make the difference between a house that sells and one that doesn't. Sounds simple, but it's true. A home that's been priced too high is typically off-putting to home buyers who now have a wealth of average home price data a few Google-search clicks away. Researching home prices is one of the first steps a homebuyer will take when looking for a home, and avoiding overpriced properties will be one of the key pieces of advice they'll be given.  Let's be honest here: although negotiating home prices can be a necessary part of the home buying process, it does prolong the home buying journey. Most buyers prefer a home already fairly priced so they don't have to enter a protracted negotiating process. There's another reason overpricing your home can lead to a slower sale — or worse, a sale falling through altogether. A home incorrectly priced and then reduced in price in the online home listing will automatically ring alarm bells for buyers. They will assume there's something wrong with the property.   Finally, if a home has been priced too high and the mortgage lender returns to the buyer with a significantly lower home appraisal, the buyer likely will be denied a mortgage. The result is that the home sale falls through.   How not to leave money on the table when pricing your home Having said all this, how do you price your home correctly without leaving money on the table? No one wants to come worse off during home sale negotiations, so what can you do to sell your home at a price that's fair but not too low? The answer may surprise you.  To sell your home at the best possible price, you typically need to price it competitively. If you're not sure, aim to price your home just a little under what a home of your size and type should sell for in your area. The homes that sell at the best prices are those that generate bidding wars from multiple buyers. Buyers generally know a good deal when they see one and react. You're much more likely to get multiple offers in excess of your asking price if the asking price is just a little under what buyers were preparing themselves for.  How low is too low? An experienced real estate professional is best positioned to answer that for you. You should always work with a real estate agent who has experience selling homes like yours in your area. Their knowledge of correctly pricing your home will come from prior sales, which is always better than doing your own calculations and potentially getting it wrong.   What strategies do real estate experts use to price your home? Think of it this way: a real estate expert is working for you, the seller. However, to sell your home at the best possible price, they need to make your home as attractive as possible for the right type of buyer. Any real estate professional worth their salt will know that a home that sells fast and without leaving money on the table is a home that's marketed to the right audience.  For example, there's no point marketing a one-bed urban apartment to families, just as there's no point marketing a luxury home with a pool to families on tight budgets. A real estate agent is a little like a matchmaker: it's all about assessing home sellers and home buyers for compatibility.  A real estate expert will also have a keen eye for the aspects of your home that are attractive to buyers. Whether it's curb appeal and a beautiful backyard or space for a home office you hadn't considered, they'll assess your home in a fresh way that can make a substantial difference to pricing.   What Should Your Home Be Priced At? We want to make sure your home is priced right and sells quickly without leaving money on the table. Let's Chat

View more

Will I Be Able to Afford More House Next Year Than I Can Right Now?

When should you buy a home in the current market? There's no doubt this market is confusing, with one expert recommending selling now to get peak value for a home and others saying to wait for the market to correct. If you're buying, your perspective is much different. You want to save money but still have your pick of lots of property for sale. Confused? That's because this is a challenging market with many things to think about before you buy, especially home affordability. When you work with your agent to break down how home affordability applies in your specific desired neighborhood and region, you'll have a better idea of the best move for you. These factors will help contribute to that decision.   The Pandemic Housing Boom Is Correcting Beyond all other factors, when you consider home affordability, you have to focus on the changes brought by the pandemic. Suddenly, people were buying homes quickly, and due to the limited number of homes listed for sale on the market, the laws of supply and demand took over. That led to rapidly increasing home prices. The double-digit home price growth of the last few years isn't something the market can sustain. If you're tired of being outbid for a home you love, that could soon be a thing of the past. All of this demand led to an increased number of homes being built, a run on steel and lumber, and refrigerators becoming hard to find. The Federal Reserve took the reins in reeling in that excessive cost and rapid growth. To do that, they boosted the key lending rate, which is likely to lead to an increase in mortgage rates for some time. As frustrating as that may sound, as a home buyer who likely needs to buy a home with a loan, there are some key benefits to it.   What Will Home Affordability Look Like in 2023? If all goes to plan, the increase in interest rates could curb inflation quickly, and a result of that could include some improvements in overall home affordability for those who are looking to buy a home. There’s no way to know what could happen, but here’s what many expect: Interest rates: If you wait until 2023, interest rates on most mortgage loans will likely be higher. That means you may spend more to buy the home when it comes to the loan costs. That doesn’t mean those prices are going to be significantly higher, but it could mean a few percentage points. Home inventory: While there’s no way to say you’ll never be outbid again, the chances are lower in the next year as inventory becomes more predictable in most areas. With more inventory available, there are also fewer reasons that home values will skyrocket in those bidding wars. Higher inventory leads to better access to buying what you want. Home prices: It’s unlikely there will be a significant housing value drop in the coming year, but home values may stop growing as quickly. There is some evidence of currently listed homes seeing price reductions right now, which could mean lower prices in some areas.   Will You Be Able to Afford More House Next Year, Though? There’s no crystal ball to tell us the future of what’s to come. If you can afford to buy a home today that fits your needs and is within your budget, buy now. You may be better off buying now instead of waiting for the unpredictable real estate market of 2023. More so, inflation is a factor. Though it is unlikely that you will find home prices rising due to inflation, you are likely to find it a bigger pinch on your budget. With mortgage rates on the rise, there’s no doubt that buying now if you qualify for a lower interest rate is the better option overall. It will save you money to secure even an interest rate that's even a fraction lower this year than next year. For example, the monthly payment on a 30-year fixed rate loan at 2.99% could be $1,073, while it’s $1,184 on a 3.99% loan. If you can afford to buy a home now and have the financing to do so, there's no real benefit to buying next year. Prices aren't likely to be much lower, though inventory may be a bit better. If you're able to find your dream home, it may be time to make your move now instead of waiting.   Get the Help You Need If you’re frustrated with the lack of access to homes for sale, talk to your agent about it. There is improvement in new listings, which could give you the perfect opportunity to buy what you want at the lowest interest rates for the foreseeable future. On the other hand, waiting too long doesn't seem to have the same benefits, and it could end up costing you. Let's discuss your situation today so that you can start your home search with confidence. Click Here

View more

What an Up to $2M Home Looks Like In Each Pro Hockey City

Hockey season is almost here, so while we patiently wait for the puck to drop we're sharing what a $2 million dollar listing looks like in each of the pro hockey cities. From Toronto to Edmonton (and everywhere between), there are some spectacular homes close to each stadium!     📍 Montréal, Québec Listed at $1,499,000 Take a Look     📍 Ottawa, Ontario Listed at $1,099,900 Take a Look     📍 Toronto, Ontario Listed at $1,445,000 Take a Look     📍 Winnipeg, Manitoba Listed at $1,050,000 Take a Look     📍 Calgary, Alberta Listed at $1,999,990 Take a Look     📍 Edmonton, Alberta Listed at $1,250,000 Take a Look     📍 Vancouver, Canada Listed at $1,798,000 Take a Look   Looking For Your Own Place to Watch the Games? Start Your Search

View more