By Chris Nash · OTTRealty
If a worthwhile opportunity comes along this winter, how will you recognize it?
I think buyers who spend some time learning their market could be in a good position. Some sellers will need to make their move and may become more willing to negotiate than they originally expected. Understanding what you’re looking at helps you recognize when the right home offers good value.
Look at the whole history
When I’m helping someone understand a price, we look at more than what’s listed today:
What comparable homes actually sold for
What’s still available and how it compares
What expired or came off the market without selling
Where each home started, its price adjustments and its total time on the market, including relistings
A home that started at $650,000 and eventually sold for $610,000 after six months tells a different story from the original listing price. It also tells us more than simply saying the buyer negotiated $40,000 off.
Was $610,000 good value? That depends on what similar homes sold for, their location and condition, and what else the buyer could have chosen.
In my experience, comparable homes can end up selling within a similar range even when the sellers start with very different expectations. The route to that sale can be quite different.
What I’m watching this winter
Last winter, I saw some sellers accept slightly less than earlier comparable sales to get their move underway. Those new sales then became part of the evidence for the next buyer and seller.
I think we could see that happen in some parts of the market again this coming winter and into March. It won’t apply equally to every neighbourhood or type of home, but it’s worth watching.
On one of my own listings, we recently adjusted the asking price from $465,000 to $450,000, and we’ve had more showings this week following that change. It’s encouraging activity and a useful reminder that buyers are comparing a home with their other choices.
Be ready to recognize the right fit
A home that’s been listed for 120 days with several reductions may deserve another look. Its history gives us questions to investigate, rather than proof that the seller will accept any offer.
The goal is finding the best combination of home, location and condition your budget can reasonably buy. The more relevant homes you follow, the clearer that picture becomes.
And it only takes one buyer. A home that suits you and represents fair value may sell while you’re waiting for a much lower number that was never realistic.
It’s also worth getting pre-approved now and asking your mortgage broker about a rate hold. Rates could move higher while you’re looking, and a rate hold may offer some protection, depending on the lender’s terms and your closing date. Knowing your budget ahead of time puts you in a better position to act when the right opportunity comes along.
If you’re also selling, we need to understand your likely sale proceeds, moving costs and timing so the whole move works for you.
Thinking about a move and haven’t chosen an agent yet? Tell me what you’re looking for. We can start narrowing the options and following the relevant sales, so you’ll have a better sense of value when the right home comes along.
Chris Nash · Sales Representative
Royal LePage Team Realty, Brokerage
