If you walk around any neighbourhood in Toronto right now, one thing might stand out in your travels. You’ll notice a lot more “For Sale” signs on lawns. And those signs are staying up much longer than they would have a few months ago. Yes, the market has changed significantly, which means a change in strategy is necessary when selling your home.
Homeowners are sometimes caught off guard by this new reality. Here are a few ways the selling experience has changed:
- Your home will not sell as quickly as it once would have.
- Conditions are making their way back into real estate contracts as buyers have more options and negotiation power than earlier in the year.
- Multiple offer scenarios can still happen, but they are much less frequent and only in certain pockets of the market.
You would not have had to negotiate much when selling your home a few months ago. A simple “For Sale” sign and MLS listing would have been enough to attract multiple buyers with very little work on your part. However, market conditions have changed and become much more balanced. What are the secrets to successfully negotiating in this new reality?
Negotiation Tips For Sellers
The first step is to research the market you’re in and set your expectations accordingly. For example, if you had a home appraisal a few months ago, chances are it is no longer valid.
Want a detailed description of what it takes to successfully sell a house in the West End? Find out more about our process here.
Strategic Pricing is Critical
Many sellers are making the mistake of overpricing their homes, causing them to sit on the market and lose value. If your price point isn’t appealing, buyers won’t try to negotiate you down. There are more options now, and they’ll simply move on to the next available listing. Your price should be high enough to maximize the value of your house while still attracting as many buyers as possible.
On the other hand, the news of falling prices may cause some buyers to try submitting offers that are too low. Your best negotiating tool is knowledge, which you can obtain by having a local real estate professional perform a Comparative Market Analysis.
Did you know we offer free home evaluations to help you determine an attractive price point? Book yours right here.
You May Need to Offer Concessions
Now that the market has become more balanced, you may need to offer a concession or two to appeal to buyers. Negotiating on price is one way to make your listing more appealing, but it isn’t always necessary. Sometimes you can offer other concessions. For example, you can include extra chattels the buyer may not expect, like the gazebo or outdoor patio furniture.
Conditional Offers are Becoming the Norm
One condition you’ll see pop up often is a home inspection. You may decide to be proactive and order a home inspection before listing your home for sale to be more competitive. Every buyer wants a house in good condition that is free of significant problems. When you have the documentation to prove that, you can negotiate from a position of strength.
Want to know more about how conditional offers work? Read our detailed description right here.
Accept Offers at Any Time
During a busy seller’s market like the one in early 2022, it was common to delay looking at offers until a specific presentation date. The idea was to generate as much attention as possible and to get buyers to compete with each other. This was an effective tactic when you could reasonably expect 10-15 offers on your designated date.
During a shifting market, you’re not likely to receive as many offers. Waiting for a presentation date may produce underwhelming results. Accepting offers at any time may be the better strategy considering current market conditions.
Dress Your House to Sell
For the best results, scrub your house from top to bottom until it shines. A fresh coat of paint can help it appear brand new, and carefully designed staging can improve the value by as much as 10%. And, of course, don’t forget to make the outside of your home attract attention.
The more beautiful your home appears, the more desirable it becomes, and the less you will need to negotiate. Here are some more tips to help you:
- How To Make Your Home Appeal To Buyers As The Market Shifts
- 5 Staging Tips To Make Your Home Look Like A Model Home
Commit to the Process
Listings are not getting snapped up as quickly as they once were. It doesn’t mean that your home isn’t desirable. It simply means buyers are not frantic anymore and are taking the time to consider their options before diving in. According to TRREB, the average home now stays on the market for 19 days before selling. However, you want to do everything in your power to sell as fast as possible. Studies consistently show that houses that sell quickly also sell for more money.
Work with an Experienced Real Estate Agent
The busy market has attracted many new agents to the field over the last two years. Many new, inexperienced real estate agents have never had to negotiate because they’ve never worked in a competitive market. Now more than ever, you need a professional who has learned to succeed in all markets, not just when conditions are favourable.
Stay Positive
It can feel frustrating for homeowners who aren’t getting the results they once would have received by selling earlier in the year. You can rest assured that if you’ve done all of the above steps, there is nothing wrong, and it is only a matter of time before you see the results of your hard work.
Thinking of selling your home in the West End? We don’t just know the neighbourhood, we live here. We can help you get the best possible results from your sale. Find out more about our team of experts right here.
