By Nancy O’Dea
We can all feel that the tide has shifted and the frenzy of a surging spring real estate market has waned for certain. I so enjoy working in the world of real estate—there is rarely a dull moment. I believe many people enjoy the topic of real estate when they get together, and I often hear my clients tell me that their friends told them that their house price is listed too low or they paid too much for a house, which is unsettling and unhelpful. These conversations tend to be based on a piece from the radio, something in the paper, or another source.
The most accurate information for someone seriously interested in the market is from a reputable, licensed Realtor who works in the business daily and who must have accurate data to get the job done. The job is to sell the property for the most amount of money in the least amount of time with the fewest challenges. Time in real estate is not your friend. When properties are listed for longer than the average home, buyers tend to want to know “what is wrong with it”? Typically, the only “wrong” thing is the price, and often it is too high for what the product is.
We are now quickly shifting into a market that formerly favoured sellers to a market that is currently balanced but may move into buyers’ territory soon. In either instance, price does become the critical factor in liquidating your real estate asset, and getting it right does take some careful analysis from one who knows the market conditions.
Of course, if you are buying in this market there will be some advantages. You can purchase with greater confidence because we are back to purchases with conditions. Having a house inspection is always a consideration, but in the previous months not many were being done. The transaction can now be negotiated without pressure, and buyers can be more sanguine about the purchase and buy with greater confidence and better pricing.
For sellers, the conditions are not as favourable and the days on market will be longer than the brief periods we saw previously. As more properties come to the market there is more for buyers to select from, so price and presentation will be important. How does a seller become first to sell? It is by becoming very competitive. This is where not only staging will be so valuable but starting at the right price. The right price will generate more traffic while a fresh coat of paint, decluttering closets and shelves, and updating cabinet hardware are cost effective touches that will go a long way.
Before signing off, I would like to briefly touch on the rising interest rates and variable rate mortgages. I strongly encourage folks to sit down with a financial advisor before pressing the panic button and understand your finances. Many have had a significant advantage by having interest rates that were historically low, and as a result were able to put more money aside. As the rates climb, that ability does diminish, but when they begin to ease there will be an ability to save again. Ultimately, most mortgage brokers will suggest that the variable rate over time has the greatest benefits, but it also depends on your ability both emotionally and financially to ride the roller coaster. I believe that this comes from having a clear financial picture and plan moving forward.
Until next time!
