Pricing your home properly in this Edmonton Real Estate Market is the single most important thing you will have to do if you want to sell your home.
Each day sellers are looking for advice and searching for that magic pill, but there isn’t one. I can however tell you what won’t sell your home! My face on a bus stop will not sell your home. Just listed cards will not sell your home. They might get me a few more listings but I feel I should earn my business in other ways. So what will sell your home?
Exposure to the whole market will help sell your home. Understanding the market and where you stand in it will help sell your home and proper pricing will help too. Independently they may seem small, but put these together and you have an excellent formula for success.
Numbers never lie but they can be misleading
Let’s take a look at the increase in the average price. Does this truly reflect what’s going on in the market? It does not. Numbers are like computers. You get out what you put into them and in this case the average price, when analyzed properly is telling us that buyers are getting much more for their dollar. It’s like selling five houses in February at a price each of $100,000 and selling another five in March for $100,000. In both months the average price is $100,000, but what if the homes sold in March were larger? Or were in better locations? You can see how the average price doesn’t tell the whole story. Truth is housing prices are falling, supply is up and buyers are seeing their dollar go much further than in the past.
When I price a home, I talk extensively on the risks of not being immediately competitive in our pricing. My aim is to sell as quickly as possible. This is not for my best interest but that of my seller. The risk of not selling quickly when prices are trending downward is high and can cost sellers thousands of dollars. Pricing is complicated and it takes understanding and experience, as each situation is unique.
Supply – Edmonton Real Estate Market
This continues to be an issue and as long as it is, don’t expect prices to move upward. It’s the law of supply and demand. Buyers are king in this market and if they are not satisfied with the property or comfortable with the price they will move on. It’s not enough to get offers anymore. You need to work hard to ensure they hold together as buyers are walking away from deals for the smallest of reasons. This is why it’s important that you get help. Choose a REALTOR® to work for you that has the experience to deal with tough markets and prepares you for the many different scenarios you may encounter.
I always talk about the difference between perception and reality and never before has this meant so much to both buyers and sellers. For sellers it’s about simply getting sold. For buyers it could mean thousands of dollars saved…or lost!
This article is the opinion of Rod Thompson and in no way should it be used by itself to make any critical real estate or financial decisions. If you wish to discuss this article or your own situation with Rod, please feel free to contact him. Not intended to solicit buyers and sellers currently under contract.