Today we're going to talk about the five things you need to know to get your home sold in 2020. Price, price, price, price and price! No matter what the market conditions are, whether the market is moving along at warp speed or the market is really quiet, the number one thing that you have to remember to get your home sold is to price it properly. There are two critical pieces of information you need to get your home priced properly. Number one, you need to have all of the comparable sales in you neighbourhood for the last 90 days (if the market conditions stay the same as they are right now). You would get your realtor to bring you over all of the comparable homes that have sold in your neighbourhood. Not the homes that are for sale as people can ask whatever they want for their home. You need to know what people have actually paid for. Secondly, you need to know the current market conditions. Is it a balanced market, a buyer’s market, or a sellers market? Your realtor should be able to go over that with you as well and explain those things to you.
Let’s say all of the comparable homes have sold for a price between $1.4 million and $1.5 million; odds are your home is going to be worth somewhere in between $1.4 and $1.5 (unless there is something extraordinarily good about your home, or something that is extraordinarily bad about your property). So, now you and your realtor have decided that your home is worth $1.45 million. What you want to do next is to decide what is the proper asking price? That will kind of depend on the market conditions. If it is a seller’s market and the last home sold at $1.5 million, you may even be able to list it a little bit higher than that because in seller’s market prices tend to continue to rise. If it is a balanced market and prices are staying flat, well there is no point pricing your home higher than what the last one sold for. It will probably sell around the same price as the last one that sold. In a buyer’s market, if the prices are declining, well you’re probably going to want to sell it a little below where the last one sold.
At any given time, I estimate (even in a really hot market) there are about 80% of the houses listed for sale that are overpriced. That gives you a real advantage when you are trying to get your home sold. What does that mean? That means that pricing, again, is the most critical thing. When you go to sell your home, you could have the greatest marketing in the world. You could have it on social media 24 hours a day and have adds in newspapers. But, if you don’t have it priced properly, your house is not going to sell. Let me give you a quick example. Let’s say the last house that sold that is comparable to you sold for $1.4 million, and you list your house (which is pretty much identical) for $1.6 million. You have immediately set yourself up for failure. The reason is that you are not going to measure up. Let’s say a buyer goes and looks at 5 houses in a day, and they are all listed at around $1.6 million. They go look at the first 4 and they are all worth around that price, and then they come and look at yours, and you don’t measure up. You have a great house for $1.4 million, but when you try and get $1.6 million for it, your house isn’t that great. Look at a racehorse analogy. Let’s say someone has a racehorse that is great when it runs for $25,000 purses fairly regularly, but when you try to move up to $50,000 purses and you run against better horses, you don’t make anything. When your home is overpriced, you’re going to have the wrong people coming to look at your house. The people that come to look at your house can afford $1.6 million, so the other houses they look at are going to be better than yours. Where are the people that can afford $1.4 million? They are not even coming to look at your home as they think it is out of their price range.
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