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Over Pricing Your Home is a Slow, Painful Process

by Claire Franceschetti

 

The most important factor to a profitable, and timely sale is to price your home correctly from the start. The way to nail the right price is to have your agent do a Comparative Market Analysis (CMA). These are ALWAYS done at no charge, so just ignore the idiotic advertising that boast that the CMA is free! Ugh.
 
If you are selling your home currently, and things are taking a long time, read on for some advice. If your house has been sitting on the market for over  month with no offers, your asking price may very well be to blame. Here are four tell-tale signs that it's time to reduce the listing price.
 
1. No one is coming to look anymore.
 
There have been few showings beyond the third week of being on the market. Typically, there is flurry of early activity within the first 3 weeks of a new listing. This is when the buyers who are actively looking in the area will come to see the new listing. Beyond 3 weeks, showings usually taper off and only the new buyers in the area will book appointments. 
 
Woman with her cats in home, focus on the woman. Stock Photo - 9042032
 
 
2.You've had plenty of showings but no offers. What could be the problem? 
 
Decor and color choices can certainly deter potential buyers. But if your home is tastefully decorated and updated, it's more likely that your price needs to come down. Based on my experience, I would suggest that if you've had 10 showings without an offer, your home is probably overpriced. Further, I have seen instances where my trusted home stager will come in and transform the show quality of a home in less than an afternoon, and the home then sells in no time.
 
3. The Buyers Feedback is not Positive.
 
You've had plenty of showings, but prospective buyers make the same negative comments about your home time and again. I am transparent with my sellers: if there is negative feedback from buyers, my sellers will hear it. While some of the comments may be difficult to hear, a little constructive criticism may help you sell your home in the long run. Remember, there's no room for hurt feelings in home-selling, and knowing the obstacles is the first step to addressing them.
A businessman showing thumb down to reject on white isolated background Stock Photo - 10416995
 
4. You have the highest priced home on the block.
 
Let's say comparable homes in your area are priced much lower than yours. If the homes are all essentially the same, there is a problem. If your house is the most expensive three-bedroom, two-bath, 10-year old home in your area, it's probably going to be the last one to sell. Further, it is foolish to think that buyers will compare a semi detached home to a detached home, or a town home to a semi detached. These are different types of homes, and the buyers see their values differently.
 
It's important to get regular updates on home prices in your area and be informed of all the selling prices of homes similar in size and age to yours. Also, your realtor should be notifying you when comparable homes drop their prices. This will help you decide if it's time for you to drop you price, as well. 
 
abstract 3d illustration of generic house on money stack, over white background Stock Photo - 8103543
 
So, after picking up on some of these warning signs, you finally give in and drop your price. But you still haven't received an offer. What's the problem? Sadly, you probably haven't reduced your price enough. I would suggest that if you're going to lower your price, don't do it in small increments. After all, there's really no difference between $225,000 and $224,900. Buyers won't fall for that. If you're going to reduce your price, you'll have to lower it by at least $5,000 for buyers to take any notice.
 
The key in all of this, is to price your home correctly from the start, and avoid a long and arduous process. 
 
Hope this helps! Call me if you would like to discuss my pricing and marketing strategies.

Vaughan Condo Sales Up in Q3 over 2010

by Claire Franceschetti

Vaughan condo sales are up...Way up!!!

The Toronto Real Estate's  Report just released today, shows that there were 162 condo sales in Vaughan for the 3rd Quarter of 2011.  The average price for a Vaughan condo came in at $338,147 with an average of 35 days on the market. There were 307 new listings, with an 98% list to sell price.

For York Region as a whole, 3rd Quarter results show 539 condo sales in total with an average price of $319,399.  When you compare this to Q3 in 2010 it's shocking: 445 condo sales with an average price of $287,337. 

These numbers are consistent with overall Toronto Real Estate Board results: with 5,770
condo apartment transactions through the Toronto MLS® system in the
third quarter of 2011, this number represents a 24 per cent increase over the same
period in 2010. The average selling price increased by almost nine per cent to
$333,352.

A word of caution to speculators however: with the increasing trend of new condo completions, and an overall increase in active listings, prices may soften in the near future.  Sales currently remain brisk, but supply continues to grow, and may impact overall prices.  

For a complete TREB Condo Sales Report, drop me a line. I'd be happy to provide it to you!

 

Who's Working for You? A Word on Buyer Representation

by Claire Franceschetti

Welcome to My Blog!

by Claire Franceschetti

Planting a Forest for the Future: Kleinburg New Forest North

by Claire Franceschetti

 

It rained on us, and it was a blustery, cold Sunday, but on Sunday October 16, 2011, Kleinburg residents got together and planted a new forest; Kleinburg New Forest North was truly born. Over 100 residents--mostly youngsters-- came out despite the rotten weather and helped to plant over 400 trees and shrubs that were donated by the Toronto Regional Conservation Authority.

They brought their shovels and wore rubber boots and in less than 2 hours, the first part of the southwest corner of the vacant park land was planted. (Who needs a Playstation when you have shovels, dirt and a few friends!) It was great to see everyone working together, and with such a strong community effort, the task was completed in half the scheduled time!

I was happy to help organize this event. I was really encouraged by the local business that donated their time and resources to making this a great afternoon. Special thanks to Jeff Wright from State Farm Insurance, The Kleinburg BIA, Avlyn Gardens Restaurant, Take 5, Frank Mazzuca, Big Top Carnivals and all the fire fighters at the station who pitched in and made things happen!

Kleinburg New Forest North is located at the corner of Treelawn Blvd and Islington Avenue (You might recognize it as the vacant land behind the Old Fire Hall.) Sunday was Phase One, but the entire planting project for this forest will take approximately 3 years with future plantings scheduled for both spring and fall.

I know that my kids will remember planting the trees in this park. I hope that they take pride in their part of creating a local green space.

I have just reviewed the sales numbers that were released by the Toronto Real Estate Board yesterday, and thing in Toronto continue to be stron. Greater Toronto REALTORS® reported 7,658 transactions through the TorontoMLS® system in September - a 25 per cent increase over September 2010. Sales during the first three quarters of 2011 amounted to 70,588, representing a 2.6 per cent increase compared to the first nine months of 2010.

"We have experienced strong growth in sales so far this year, with a much more active summer compared to 2010. However, while sales have been strong, we have continued to experience a shortage of listings, resulting in more competition between home buyers," said Toronto Real Estate Board President Richard Silver.

"Over the past few months, the listing situation has started to improve, so we expect home buyers will have more homes to choose from in the months ahead." With annual growth in sales (+25 per cent) outstripping annual growth in new listings (+15 per cent) in September, market conditions became tighter and the average selling price continued to grow by close to 10 per cent on a year-over-year basis.

"Strong price growth through the first nine months of the year was mitigated to a great degree by low interest rates and rising incomes," said the Toronto Real Estate Board's Senior Manager of Market Analysis Jason Mercer. "As buyers continue to take advantage of the affordable home ownership options in the GTA, we remain on pace for the second best year for sales under the current TREB market area."

While the Toronto real estate market continues to grow, it is becoming the envy of Canada. I recently met with Re/Max agents from across the country at the Re/Max Annual Fall Connect convention. Several Vancouver agents expressed a sense that things were flattening in the west, and this was echoed by another agent just outside Edmonton. Closer to home, a Wasaga Beach agent mentioned that listings are taking much longer to sell.

I believe that the Toronto market enjoys a certain amount of insulation. We have enjoyed a strong economy with healthy job prospects. Further, we benefit from ongoing immigration which fuels market growth also. However, I caution investors to be prudent. Recall only 3 years ago--the infamous October 2008 adjustment--we need to make sure not to over extend our borrowing, and buy within our means. In more difficult times, this strategy will ensure a good night sleep, and no drastic change of lifestyle.

Displaying blog entries 1-6 of 6

Contact Information

Photo of Claire Franceschetti Real Estate
Claire Franceschetti
Right At Home Realty Inc.
190 Marycroft Ave.
Vaughan ON L4L5Y2
Direct: 416-918-6325
Office: 416-391-3232
Fax: Fax: 416-987-8001