Is It Hot Right Now…Or Is It Just Me?!?
Deb: Tell me about this market?
Krisztina: If you have a well-priced home and it shows to perfection, you will get multiple offers in this market….however, THIS IS THE TIME to sell your property if it’s NOT perfect because the higher priced properties will pull up your price. People will compete for higher end properties but the inventory is so low right now that instead of waiting longer, they will say: “This property is not perfect but I will go for it”.
Deb: Give me an example of what is considered ‘not perfect’.
Krisztina: For example, I sold 83 Gatwick which was gorgeous and perfect and had about $240,000 in upgrades, but a listing on Meadowland was far from perfect ~ different floor colours, awkward kitchen, still has cork flooring, older carpet…and it already has an offer. I’m not sure if it will sell at asking, but it’s still going to sell above what my opinion of what it’s Fair Market Value would be ($980-990). Probably they will get more money for it.
Deb: That’s an example of ‘everything is awkward about the property’. If you just had small imperfections, what would that look like?
Krisztina: For example, your whole house is beautiful, but your bathroom needs to be reno’d or your whole house is beautiful and your kitchen is custom but you don’t have the latest and greatest countertops, or your landscaping is not 100% – those are small imperfections.
Deb: You bring up a good point with landscaping. Let’s talk landscaping in these winter months.
Krisztina: This is the best time to sell properties with ‘not as great’ landscaping. Buyers are obviously not gawking over beautiful pools, fountain designs, the green shrubberies or the newest blooms. They look out, they look at the size but they don’t spend as much time analyzing your backyard.
Deb: So let’s backtrack. Are you saying if, for example, my kitchen backsplash is not great then don’t invest the money to upgrade it?
Krisztina: What I’m saying is that you have to look at your competition, what’s on the market in your area and price range and then you have to have an Agent who will advise you wisely – a) you fix it or b) you sell it as is. It’s all about the comparables. For example, my newest listing on Ravineview Way. 2 doors down is another listing which is absolutely perfect. Our property is nice, has lots of benefits, but it is not a totally reno’d home. However, we will be waiting for the other listing to sell and hopefully that will pull up our price. And then we will sell our property for more amount of money than if we had just listed it without the gorgeous property being on the market and selling ahead of us.
Deb: So this market seems confusing.
Krisztina: It is confusing. It’s hot. Buyers are out there. BUT if you overprice a property too much, you still can expire. I’m still seeing cancellations of listings. I’m still seeing expiries. I’m still seeing price reductions. So the market is ‘hot’, low inventory, but it’s still not 2017.
Deb: Are Agents pricing their properties with the intent of multiple offers? Underpricing?
Krisztina: Some Agents are going with that option or some Agents are pricing higher (overpricing) and hoping they can get an offer. I think that is risky and I would not suggest that – I don’t believe the market is quite there yet. If we have no inventory coming up in the next 3 weeks, we might get there. But I believe more inventory will come up and the market will settle. And then Pre-Marketing, Marketing, putting your property in the best light is going to become even more important.
Deb: But marketing is just as important right now.
Krisztina: Marketing is ALWAYS important because the question is: Do you get 1 offer or 3 offers? Do you get Asking or do you get $20, 30, 40,000 over asking? It’s not a lot more money in the Agent’s pocket BUT it’s LOTS of money in the Seller’s pocket. Just think about that!! Which Agent do you want working for you? I assume – the one that fight for every dollar for their Client and doesn’t settle on an easy offer.