Understand your Market before you Sell

In today’s very active and competitive real estate market in Toronto, it’s surprising how many home sellers get caught up in the excitement of rapidly-rising prices and just arbitrarily decide what their home is worth. While you may have quickly browsed a web site or two, or even toured some Open Houses in your town, such casual investigations can’t properly evaluate what price the changing market will bear and what your house can command against its competition.

Some home sellers even make the potentially serious mistake of buying a new home before they have a clear understanding of what their current home may sell for. They enter into a commitment to buy their next home at a certain price and then ‘work backwards’ trying to sell their home for the amount they’ll need to bridge the distance between the two properties. Sometimes this flawed logic can end in disaster. The home seller may be left with a home that sits on the market for months longer than they anticipated. They may even end up reducing the list price, if their target price doesn’t fit the reality of current market conditions.

If you’re thinking of selling, an important first step is getting a comparative market analysis to give you a reasonable expectation of your home’s value. You need hard information and proven facts to really understand the market, so ask for a market evaluation of your property before you set the list price. Don’t choose a number off the top of your head, just because it suits your needs. I can prepare a comprehensive report for you that will provide you with statistics on recent sales and current listings of comparable properties. Recent sales show you what prices the market has already accepted, so that’s a good benchmark for a realistic starting point. Current listings show you the competition that you are up against now, so you can be sure your home will be competitively priced. Just as important, I can also provide you with detailed information on comparable listings that have expired. By reviewing similar houses in your area that did not sell, you know what price range the market will not bear.

In Toronto's active market, home sellers are frequently approached by salespeople from different companies. While it may be a temptation to choose a salesperson simply because they propose the highest list price, this is usually not the best tactic. If your listing is overpriced, it will discourage potential buyers, extend the time period you have to carry expenses and waste your time. A better strategy is to choose a real estate professional who has taken the time to review your market and your competition and is prepared to support their recommendations with solid market research. Why not contact me and take advantage of our advice? There’s no cost or obligation to you and it might just turn out to be the best call you’ll ever make.

Get a free online comparative market evaluation.

#1 Mistake Home Sellers Make

A recent e-mail survey by House Hunt Inc. asked home sellers what mistakes they made when they sold their home. The number 1 answer, was over pricing their home. Second, by a nearly three to one ratio, was working with the same agent who represented the buyer. Third was failure to disclose known defects, with underpricing and not using the Internet to market following closely behind. At Coldwell Banker Terrequity, I provide detailed market evaluations and compare your property to numerous others that have sold recently, expired and are for sale. I also try to avoid representing both the buyer and seller (dual agency) if at all possible.

Contact me for a free online comparative market evaluation today.

Looks like the Experts are Wrong Again!!

Here is actual proof that the market is still on Fire!! The "Experts" can make all the predictions in the world about the end of this strong Real Estate Market but it would be nice if they were somewhat close once in a while.

TREB Market Watch
Sales up Nine Per Cent over February 2005
Friday, March 3, 2006

Sales of existing homes rose to 6,756 in February, a nine per cent increase over the same month last year, TREB President John Meehan announced today. "The Toronto resale market is accelerating nicely as we move towards Spring," the President said. "It looks like another healthy year ahead of us."
Mr. Meehan further noted that February's performance was the second best for the month ever recorded and up 47 per cent from January, which is in line with seasonal trends.
On the pricing front, the average in February rose to $353,928, a six per cent increase over both February 2005 and January's figure of $332,687. The median price told much the same story, rising six per cent to $298,000 over $281,000 recorded during last Feburary, and up three per cent over January 2006.
Breaking down the total, 2,524 sales were reported in TREB’s 28 West districts and averaged $333,969; 1,219 sales were reported in the 14 Central districts and averaged $465,484; 1,344 sales were reported in the 23 North districts and averaged $377,795; and 1,669; sales were reported in TREB’s 21 East districts and averaged $283,414.