If the market has taught us anything this year, it’s that overpriced listings will sit, sit and sit some more. While the accurately priced listings will dominate attention and activity, usually leading to a sale.
This is why, this week, we’re doing a call to arms. A word to the wiser. A tip amongst kings, if you will…
You need to remove your overpriced listings from the market. Yep, that’s it. Take em off.
We’ve been saying all year, that the market has consistently shown it will not overpay, regardless of hot market or not.
So if you’re not willing to reduce your price to market levels, what option does that leave you?
Taking your home off market.
Look, if you’re just building days on market, without any results, you are shooting yourself in the foot. If you’re fighting in a downward market too, as you sit there, the market is reducing even further. Either way, you’re harming your chances of success. Let’s say you’re sticking to your guns at $850,000. It’s been two months without a showing and you’ve been on market for 4 months already. Even if you start magically getting showings, do you think a buyer is going to be paying you your expectations if you've sat for 4 months at that price without a sale? The answer is no. It’s difficult to get a buyer to pay over market price in this market from the beginning, let alone a listing sat on the market for many months.
The next step from this is to sit and wait. None of this “Oh I’ll try in the Springtime”. If you’re 15% off market value right now in November/December, are you realistically expecting the market to increase 15% in 4 months?! The Downtown condo market is still coming down, so why would it be up 15% by then?! Even the extremely busy detached market is increasing roughly 1% a month only. So doing the math - Up 1% a month X 4 Months = Up 4%. You’re still 11% away from your target.
You need to hurry up and wait. Watch the market with your realtor until the timing and pricing is right. If you sit on market and wait for that time, you are shooting yourself in the foot. It could take years to get to where you need it.
Now we know this goes against what REALTORS are supposed to say, however we do these blogs/videos/podcasts in the first place to give you the necessary information to succeed, not to spout random nonsense that isn’t helping anyone.
We’ve had this discussion with some of our clients ourselves. We’ve explained the situation, how we feel next year will look, and what the strategy should be moving forward. Sometimes that even means telling our clients to come off market, it’s not the right time now.
Hopefully this helps some of you who have been thinking over your next steps in selling. Of course, we’re happy to lend a helping hand to anyone in need of their own property selling strategy. Feel free to call, text or e-mail on any of the contact details below!
Until next week,