Well, here we are in June already, the time of year when home sale volumes traditionally start to peak, with a levelling off over the summer months (although this was certainly not the case last summer). Will the real estate market return to “normal” just as our lives in general hopefully start to?
Nothing has been normal – real estate or otherwise for the past 14 months – so I guess the next couple of months will tell. The local real estate market remained very strong in May, with record pricing continuing in many housing categories. Rural properties in particular are of note on this front. Not only did we sell two residential country properties in Centre Wellington for over $2 million in May, both sold over asking price. Another country property we sold in May had a selling price $420,000 OVER ASKING; Not in Toronto folks – in Wellington County!
Just when I started to think the market was cresting in May, these results happen. So as I said in my last article, the market is more and more unpredictable. Let me be clear, these kind of results are not happening across the board. One property may get 15 offers, another 1 or zero. Things seem to be getting more property and location specific. Some cracks did start to appear in May, with some 2 storey subdivision homes not getting the results sellers were looking for. But it is too early to predict if this is the start of something bigger happening in the overall marketplace or not.
Certainly country properties, especially on 2 acres or more, are attracting buyers willing to pay premium pricing. Seller expectations are starting to worry me somewhat. And you have to remember I am a realtor known for setting record pricing (see results above), so that statement means something I think.
There is more than one recent story – including one where the seller got 21 offers, but decided that it should have sold for more, and turned down all the offers. If you get 21 offers, based on the current market, your property is not worth more than the highest of the 21 offers, plain and simple. Three months from now, I think that seller will regret not taking one of those offers.
ONLINE PRESENTATION OF YOUR HOME
I wanted to end off this month’s article with admittedly what is a little pet peeve of mine. I know it seems every house is selling for record pricing, and it doesn’t matter if you do anything to the home, that staging doesn’t matter, that professional photos don’t matter. But none of that is true.
Sure, there are times when realtors have no choice but to sell a property as is for various reasons. I’ve had to do it myself. But remember, the best marketed house sells for top dollar, not necessarily the best house. And great online presentation is part of doing a proper job of marketing. When I see a resale home come to market totally vacant, or an estate sale where not one thing has been tidied up, I see a lazy realtor. Or a realtor that doesn’t have the proper resources, ability, or desire to pay for doing a proper job.
Commission is a lot of money. The least a realtor can do is spend some of their money to stage the home (at least a little bit). And nothing but cell phone pics on a listing – inexcusable. When interviewing realtors, make sure you ask about the marketing & services they provide (that are included in their commission). Believe me, there are major differences. And those differences can lead to a much different result for you, the seller.
Until next month, take care.
George
