Seller Expectation Vs. Reality

Seller Expectation Vs Reality
In today’s day and age, especially in real estate, there is a tendency of over inflation. Once you add a dash of high expectation, a sprinkle of reality, and finally a spoonful of truth… You’re really being pulled in all different directions without a realistic view on which way you should be going and why. How does this happen you say? Well, you overhear a conversation a colleague is having at work, maybe you’re having your own discussion with a friend or potentially here a news article? Another fine jump to conclusions are when people see a unit in their building for sale for 2 weeks and assume it’s never going to sell.

The problem with all of these different views and opinions are that they don’t give you an accurate and correct view on what is ACTUALLY happening in the market today!

That’s where the title of this blog comes into play - You NEED to be working with a REALTOR who will tell you what you NEED to know. Not what you WANT to hear, or what you THINK you know.

Now we know this seems rather forceful saying it this way, but it’s only because it’s the truth and it’s going to save you money in the long run, not to mention time and energy!

The reality of this being, when you decide on listing your home, a REALTOR should be giving you a listing presentation or a Comparative Market Analysis (CMA). Within this document, they should be showing you recent activity on sales as close as possible to your property i.e. size, square foot, age, location etc.

These details are quite literally the facts. If a unit in your building just like yours sold for $750,000, then no matter how you want to look at it, that unit sold for $750,000. Which brings us to our next point. The Market is the Market! - Whether you’re happy about it or angry, it is what it is, and guess what …. Whether happy or sad, the above unit still sold for $750,000.

These comparisons will give you the pricing structure you should be adhering too, assuming you actually want to successfully sell your home? Now of course you can get these accurate figures and decide not to sell your home, that’s totally fine too. But if you DO want to sell your home, if you’re looking for success, these recent figures are what will show you where you need to be in terms of pricing with relative property differences taken into consideration.

This all seems easy right?! Well imagine you’ve been getting mixed signals on where you feel the market is currently. If you purchased in Vancouver in 2017 and haven’t done any renovations/upgrades, i’m telling you your property price has decreased. But you’ve been hearing on and off the last few years homes are selling incredibly fast and above asking?!

If this is the case, I can bet you you’re not going to want to take that reality check so easily. That’s why in order to set you up for success, your REALTOR has to have the good integrity to tell you where the market is really at, whether it’s what you want to hear or not!
Now you may be wondering how this mistake can cost you money? Well, take this simple example…..

Let’s say you bought a home last year for $625,000. Since then you have decided you’ve outgrown your space, so now decide to sell your $625,000 home. You list it for $699,000. Now you’ve listed it at this price because of your own beliefs and what you’ve heard, however in reality it’s actually now worth $600,000!!

You stay on the market for a while, convinced of your price but with no sale. Now 6 months has passed and another unit just like yours sold for $575,000 because they needed a quick sale. Now the new benchmark for your home has decreased from $600,000 to $575,000. Meaning if you had originally priced your home correctly it would have likely sold for $600,000, but now in order to sell it, you’re going to have to be closer to the $575,000 price because of the new benchmark!!

This is such an important topic and in truth, something a lot of REALTORS are afraid to do & be honest with you about. This is why we recommend you search carefully for the right professional to work with!

We’ll be back next week as always. Until then, we hope everyone enjoys their Easter Holiday!


Mcinnes Marketing

Jay Mcinnes
T: 604.771.4606

Ben Robinson
T: 604.353.8523