With homes sales in Kitchener Waterloo trending down, hopeful home sellers need to adjust their strategy to avoid costly mistakes. As noted previously, fewer buyers and more sellers give buyers more options. As a result, real estate appreciation moderates.
Recently, I represented a buyer on the purchase of her first home. After looking at a number of properties, she fixed her sights on a freehold townhome. It had just been listed for sale on MLS at $259,900. The home was vacant as the seller had relocated overseas. As is my custom, I prepared a market analysis for the buyer on the selected property. Based on that, we made an offer of $250,000. I communicated to the listing agent that the buyer was serious. I highlighted the comparable sales that we relied upon and indicated we were unable to justify the asking price. The sellers signed it back for close to the full asking price. The buyer was faced with a dilemna. I had counselled her initially that sometimes sellers are not prepared to sell for market value. She decided to walk away.
Fast forward 47 days. The seller has reduced the property from $259,900 to $252,900 to $247,900. It ultimately sells for $242,000. The seller has accepted $8000 less plus the cost of carrying the property vacant for additional time.
What happened? The best analogy I can use is one from the game of poker. The sellers "overplayed their hand". Their actions indicated they thought the property would sell at a premium to recent comparable sales. The ability of buyers to shop for real estate online has created greater awareness of market value. Buyers working with a Realtor have the added protection of the market analysis their agent provides.
So what should serious home sellers do in the current market? Find an agent you can trust with a proven track record. Listen to their tips and recommendations and act upon them. Otherwise, you run the risk of being one of the Kitchener Waterloo home sellers who realize too late they've made a costly mistake.
Century 21 Home Realty Inc. Brokerage
"Delivering results since 1989"