{"id":11220,"date":"2019-04-30T08:28:40","date_gmt":"2019-04-30T12:28:40","guid":{"rendered":"https:\/\/www.zolo.ca\/news\/?p=11220"},"modified":"2022-07-12T23:52:15","modified_gmt":"2022-07-13T03:52:15","slug":"selling-a-home-in-a-buyers-market","status":"publish","type":"post","link":"https:\/\/www.zolo.ca\/blog\/selling-a-home-in-a-buyers-market","title":{"rendered":"Selling a Home in a Buyer\u2019s Market"},"content":{"rendered":"\n

Selling a home is a stressful business. It\u2019s probably the single largest transaction you\u2019ll make in a lifetime. Add in the fear of a downturn, a possible recession and market uncertainty and you\u2019ve got a recipe for anxiety. <\/span><\/p>\n\n\n\n

And it\u2019s not like this fear and anxiety isn\u2019t substantiated. According to recent data released by Statistics Canada, the percentage of households that own their home fell to 67.8% in the 2016 census, down from 69% in 2011. <\/span><\/p>\n\n\n\n

The largest declines were found in cities that have experienced the largest growth in housing prices, such as <\/span>Toronto<\/span><\/a>, <\/span>Vancouver<\/span><\/a> and <\/span>Victoria<\/span><\/a>, B.C. This means that fewer buyers are getting into the market at a time when the market favours buyers, in general. Worse, there\u2019s every reason to believe that the decline in homeownership rates will continue, at least for the foreseeable future. <\/span><\/p>\n\n\n\n

These are the moments when armchair real estate experts will tell you to hold off selling. Unfortunately, many people can\u2019t just sit around and wait for market conditions to change. New jobs, changing financial circumstances and other life events won\u2019t allow it. Thankfully, selling a home during uncertain market conditions or during a buyer\u2019s market doesn\u2019t necessarily equate to doom and gloom. There are time-tested strategies sellers can use to mitigate the downside of a slow market.<\/span><\/p>\n\n\n\n

Here are eight essential steps for selling a home in a buyer\u2019s market. <\/span><\/p>\n\n\n\n

Step #1: Analyze Current Market Dynamics and Trends<\/span><\/h2>\n\n\n\n
\"Property-type-historical-prices-Toronto-Zolo-2019-outlook\"
TheStar.com<\/figcaption><\/figure>\n\n\n\n

As a seller, the first essential step is to assess the current housing market. <\/span><\/p>\n\n\n\n

In 2019, both sales volume and prices will barely keep up with inflation. According to the Canadian Real Estate Association (CREA) sales volume will increase by an estimated 2.1% while housing prices, on average, will climb only slightly more than inflation, at 2.7%. (Unless you live in Ontario, where prices are predicted to increase by 3.3% this year.) While these predicted increases aren\u2019t the double-digit increases we\u2019ve seen in recent years, these far-more subdued gains can certainly offer confidence to sellers that Canada\u2019s housing market isn\u2019t heading for a market crash.<\/span><\/p>\n\n\n\n

But sellers shouldn\u2019t be relying on national averages. Home sellers need to go beyond general national statistics and drill down into precisely what is selling in your specific geographic location. <\/span><\/p>\n\n\n\n

\u201cWhile starting with an overview of Canada\u2019s housing market is nice, it doesn\u2019t give you the granular detail required to make educated decisions,\u201d explains Mustafa Abbasi, President of Zolo Realty. \u201cTo get a true picture of what is happening in your neighbourhood and in your city you need more detailed information. You want to know what property types are selling, how much more will an extra bedroom or bathroom will get you, and whether or not buyers are more interested in a garage or an in-law suite.\u201d<\/span><\/p>\n\n\n\n

In short, you need insightful, relevant data before sticking a \u201cFor Sale\u201d sign on your home.<\/span><\/p>\n\n\n\n

Step #2: Get a Killer Agent on Your Side<\/span><\/h2>\n\n\n\n
\"Zolo<\/figure>\n\n\n\n

Want to sell your home in a down market? Then you\u2019ll need to pick the right agent. <\/span><\/p>\n\n\n\n

Ask friends and neighbours for references and interview at least three agents, if not more, before making a selection. Ask each agent specifically what they will do to market your home, who will be working with you (some high profile agents get your business and then ask a junior associate to do all the work), and how many clients they are currently working with. <\/span><\/p>\n\n\n\n

Avoid agents who promise a fast sale or guarantee an above market price for your home. They can\u2019t. It\u2019s just a cheap ploy to get your listing. <\/span><\/p>\n\n\n\n

In the end, you want a professional that is dedicated to their career and puts the time and energy into becoming an expert. This doesn\u2019t mean you need an industry veteran; sometimes agents earlier in their career are better, as they are willing to hustle. <\/span><\/p>\n\n\n\n

No matter who you shortlist, be sure you feel comfortable with working with them and you are in tune with their communication style. There\u2019s nothing worse than talking and deciding on massive sums with someone you feel isn\u2019t listening to you! <\/span><\/p>\n\n\n\n

Step #3: Price It Right<\/span><\/h2>\n\n\n\n
\"sold<\/figure>\n\n\n\n

Perhaps the single most important factor when selling a home in a down market is to list it at the right price. Price it too high and your home will sit on the market, becoming a comparison show-home that helps sell other properties on the market. <\/span><\/p>\n\n\n\n

To set the right price, sellers need exact information on properties that recently sold, the similarities and differences in those properties to their home and the market conditions for their community and property type. <\/span><\/p>\n\n\n\n

For sellers choosing the do-it-yourself option (known as For-Sale-By-Owner), you can find sold information on many real estate brokerage sites, including <\/span>Zolo.ca<\/span><\/a> (virtually nationwide), Bungol.ca (restricted to the Greater Toronto Area), as well as HouseSigma and TOsolds (both restricted to the GTA).<\/span><\/p>\n\n\n\n

If you opt to work with a Realtor, ask this professional for a comprehensive Competitive Market Analysis (CMA). Most agents will limit this analysis to no more than six or so properties \u2014 primarily because too much information can be overwhelming for most people. If, however, you prefer more info rather than less then don\u2019t be afraid to ask for it. Good agents are only too happy to help engaged and motivated sellers.<\/span><\/p>\n\n\n\n

For more on the strategies for pricing your home right, read \u201c<\/span>How to Price Your Home for Sale\u201d on page <\/span>xx<\/span>.<\/span><\/p>\n\n\n\n

Step #4: Put On Your Best Face <\/span><\/h2>\n\n\n\n
\"curb<\/figure>\n\n\n\n

A first impression is often a lasting one and, as sellers, the same applies to how buyers first see your home. You want to really leave an impression; remind the buyer what they could get if they are willing to take the plunge and buy. <\/span><\/p>\n\n\n\n

While some sellers will be ready to go \u2014 with manicured yards, up-to-date home maintenance and much-needed updates \u2014 others will need to consider spending a bit of time and money investing in beautifying the home before listing it for sale. While some updates are sunk costs, typically the money spent on creating curb appeal is a good investment. <\/span><\/p>\n\n\n\n

Consider your property\u2019s gardens and lawns, as well as the hardscaping (these are patios and stone walkways). Spend an afternoon or pay a company to power wash your home and pathways (as well as the driveway) and consider painting the exterior if this job hasn\u2019t been done in over a decade. <\/span><\/p>\n\n\n\n

When it comes to inside the home, don\u2019t bother spending large sums on major renovations (unless you plan to gut and redo the entire home to the current standard of home buyer desires). Instead, consider spending on strategic updates: update old-fashioned light fixtures, wall plates and drawer knobs to more contemporary selections. Replace carpets (or, at the very least, steam clean them to within an inch of their life) or pay to refinish rough or stained hardwood floors. <\/span>Once done, spend time (or <\/span>pay professionals<\/span><\/a>) to really make your place sparkle and shine. Don\u2019t forget to remove the cat box from the kitchen. While pets are cute, too many would-be buyers can get turned off when there is evidence of a pet (such as food or smells). <\/span><\/p>\n\n\n\n

Step #5: Declutter and Depersonalize<\/span><\/h2>\n\n\n\n
\"Yard-sale-Tips-to-declutter-before-selling\"
The Spruce<\/figcaption><\/figure>\n\n\n\n

Want a cheap way to add value to your home? Get out the boxes and start packing. According to professional organizers, each box of clutter that\u2019s packed away before listing your home for sale can <\/span>add about $500 to the value of your home<\/span><\/a>. Pack 10 boxes and you add approximately $5,000 to the sale price of your home. Why? Because many prospective buyers find it tough to look past the clutter and personalized memorabilia. Rather than focusing on how much light the family room gets, these buyers are drawn to the family photos, spoon collection and the pile of tax papers on the coffee table. <\/span><\/p>\n\n\n\n

So, remove your personal memorabilia so that a potential buyer can easily imagine living in your space. While you\u2019re at it, declutter your home by taking away unnecessary furniture and nick-nacks (these items can make your home look smaller than it is). Box it all up and pack it away. Remember, if you want to sell your home in a buyer\u2019s market, you need to convince the buyer that your home offers the best value on the block. <\/span><\/p>\n\n\n\n

Step #6: A Picture Is Worth a Thousand Words<\/span><\/h2>\n\n\n\n
\"Curved-furniture-Zolo-2019-furniture-trends-curved-sofa-set\"<\/figure>\n\n\n\n

Most buyers begin their search online \u2014 and survey after survey shows that buyers consider photos as the single most important feature that drives them to book an appointment to view a home. <\/span><\/p>\n\n\n\n

While hiring a professional photographer is ideal (they\u2019ll know when to turn on the lights, when to draw the curtains and what angle is the best for each room), it isn\u2019t 100% necessary. Any good camera (either digital or on a smartphone) can take great shots as long as you follow these simple rules: <\/span><\/p>\n\n\n\n

  • Always turn on all the lights before taking the shot (even it it\u2019s daylight outside)<\/span><\/li>
  • Don\u2019t bother taking shots of standard rooms (if your bathroom doesn\u2019t photograph well, then don\u2019t bother show it)<\/span><\/li>
  • Remove all hints of pets <\/span><\/li>
  • Clean and organize all clutter, including removing all appliances from the kitchen and bathroom counters<\/span><\/li>
  • For outside shots, consider taking the pictures just before dusk, when most photographers would agree that outside light is perfect for contrasting your picture subject (in this case, your home)<\/span><\/li><\/ul>\n\n\n\n

    In the end, you want to make your home look like a Hollywood star. No joke. <\/span><\/p>\n\n\n\n

    Step #7: Add Financial Incentives<\/span><\/h2>\n\n\n\n
    \"add<\/figure>\n\n\n\n

    In slow housing markets, sellers may need to put some financial skin in the game in order to close the deal. This doesn\u2019t always mean knocking down your asking price. Instead, consider other financial incentives that could sweeten the deal for would-be buyers. For instance, offer to pay all closing costs. While this may mean a few thousand out of your pocket, it could mean a done deal without reducing your asking price. Other options include paying for a mover, providing a year of Netflix or cable TV services or throwing in a flat screen TV. <\/span><\/p>\n\n\n\n

    The idea is to nudge the on-the-fence buyers into making a deal.  <\/span><\/p>\n\n\n\n

    Step #8: Bird in the Hand<\/span><\/h2>\n\n\n\n
    \"young<\/figure>\n\n\n\n

    In a buyer\u2019s market, you have to be prudent and quick. This means offering counters to all offers, even if the buyer offered a low-ball bid. <\/span><\/p>\n\n\n\n

    Remember, most buyer traffic will come in the first several weeks of a listing, so it\u2019s never a good idea to ignore a bid even if it does feel insulting. <\/span><\/p>\n\n\n\n

    While a low-ball offer may hurt, emotionally, it\u2019s still a clear indicator that a buyer is interested in the property. Keep that interest going until you can help them see that your price and terms are reasonable (assuming you priced the property competitively in the first place). <\/span><\/p>\n\n\n\n

    Another reason is that an offer in-hand can entice other buyers to move quicker. No one wants to feel like they lost out, so adding a bit of urgency can prompt buyers that are on the fence to act. <\/span><\/p>\n\n\n\n

    Since a formal counter-offer can legally bind you to negotiate with just one seller, consider talking with your agent about how to keep your options open. Perhaps your agent can have informal chats with the buyer\u2019s agent about possible terms and conditions that both parties will agree to; or you could add in a clause to a formal counter-offer that frees you up to negotiate with other possible buyers, as their offers come in. <\/span><\/p>\n\n\n\n

    Either way, don\u2019t ignore an offer based on a hope that something better will come in. Instead, be proactive and be smart and negotiate your way to a better sale price.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

    8 steps that get you higher prices and faster closings<\/p>\n","protected":false},"author":3,"featured_media":15569,"comment_status":"closed","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"footnotes":""},"categories":[48],"tags":[],"guide":[],"class_list":["post-11220","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-selling"],"acf":[],"zolo_excerpt":"","_links":{"self":[{"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/posts\/11220","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/comments?post=11220"}],"version-history":[{"count":6,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/posts\/11220\/revisions"}],"predecessor-version":[{"id":21676,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/posts\/11220\/revisions\/21676"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/media\/15569"}],"wp:attachment":[{"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/media?parent=11220"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/categories?post=11220"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/tags?post=11220"},{"taxonomy":"guide","embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/guide?post=11220"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}