As we have all heard by now, we are in a shifting market.
What do we mean by “shifting”? Throughout the covid 19 pandemic, we saw our market heat up in ways that we could not have anticipated. Prices continued to rise and break records on a month to month basis. While this was an exciting time for many sellers, it truly was what we like to call, a Unicorn Market. Such growth was not sustainable and was inevitably going to slow/ reverse. The shift that we are currently witnessing is one from a very strong seller’s market ( a market that favours sellers through low inventory and high demand) toward a buyer’s market ( a market in which buyer’s have the upper hand through an increased level of inventory and lower demand).
To sum it all up, the market is currently on a decline. We do not state this as a negative or a positive, but as a fact. There are both upsides and downsides to this change in pace and it is important to know how to navigate the current landscape of the market, and ensure that you have the right strategies in place to optimize your position as a seller.
Focus on THIS market, not what was.
In this shifting market, one of the most important pieces of a successful sale, is being a realistic seller. As much as we love to look at the Unicorn Market that was and dream of selling for those numbers, unfortunately those days are no longer. We are still in a great market to sell, however, if you are expecting to meet those numbers from the peak in February, you will be disappointed. Instead, focus on the market you are in. What is the best way to do that? Know the data.
Know the data.
As realtors, a key piece of our job is to manage our clients expectations. We do that through facts and data. At the end of the day no matter how much we love your home, that love doesn’t drive the price, data does. Ensuring that you have done a deep dive into your market and its statistics ( sales, price, showing activity, offer activity, comparables etc ) OR better yet, that you have a realtor who has all of this information for you. By understanding the current sales data around you, you can best position yourself in your market.
Prep your home to perfection.
Gone are the days of snapping some quick pics and throwing your home on the market to sell in 2 days for 300k over ask. While we have always believed in a thorough preparation for listing, it is now more important than ever. If you want to receive top dollar for your home, you need it to show in its absolute best light. This means cleaning, finishing up odd jobs, fresh paint, and of course staging. To elaborate on the staging portion, to simply stage is not the solution. All homes are unique, and one style of staging does not fit all, make sure that you or your realtor tailors the staging to best suit the specific style of home.
Ensure that it is being well marketed .
Exposure and marketing take on a much larger role in a shifting market. While a lot of buyers are sitting on the sidelines, “waiting to see what the market does”, you need your home to reach their view and catch their attention! There are so many buyers out there right now that ” will buy if the perfect house comes up”. That is why your home needs to look its best and receive as much exposure as possible. This can mean online ads, organic social media exposure, print marketing, email blasts and so many other mediums. Ensure that your realtor has a comprehensive marketing plan to give your home the attention that it deserves.
Know a good offer when it comes.
Our final advice for a shifting market is to be open to the offers that you receive. You never know where the buyer’s head is at so don’t immediately write off offers if they appear low. This is what your realtor is for. Get into negotiations, and see if there is a way to make that offer work. While sometimes they simply wont be at a place where you are comfortable accepting, be aware of how big the gap is from that offer to your “ideal offer”. We have heard countless stories recently of sellers receiving offers for say $1.4 mil, turning them down, and selling weeks later for $1.3 mil. Know what you have in hand and consider it carefully. This is a time to re evaluate the market with your realtor and discuss the difficult reality if there truly is a chance of receiving a better offer in the future.
And don’t forget, all market’s are relative! If you are selling lower, you will likely be buying lower as well!