In Part One of this article, I covered some of the crucial decisions sellers must make before listing their home for sale. As in most business transactions, deals often come down to the $$$. Nine times out of ten, the financial terms of any transaction are the last piece to be agreed upon.
The list price for your property is the most consequential decision you’ll make and has the most direct impact on your Realtor’s ability to get your home sold. Are you being aggressive with your pricing? What are your motivations for listing your property? If your motivation is strictly to sell your house for the maximum amount you believe it’s worth, chances are your home may sit on the market for a long time. However, if you understand current market conditions and are serious about selling, my advice is to formulate your pricing strategy with today’s market in mind. With this approach, you’ll find success.
For buyers, the decisions are similar—but not identical. It’s true that prices have come down. At one point, three-bedroom townhouses from Stouffville to Vaughan were selling anywhere from $900,000 to well over a million dollars. That’s not the case today. In the current market, those same homes are selling between $800,000 and $900,000.
Buyers are beginning to see the opportunity and are slowly emerging from their COVID-induced slumber. The market is gradually coming back to life, but the change is not happening rapidly. Recovery will take time. Eventually, home values in the GTA will climb again, but it won’t happen overnight—it could take years for the market to fully recover. In the meantime, buyers should take advantage of the current conditions. Now may be the perfect time to upgrade.
Unfortunately, we haven’t yet reached a point where sellers and buyers are fully aligned. If we’re being honest, I’m not sure there has ever been a time when both sides were completely on the same page—and that gap appears even wider right now. In fact, it’s the largest disconnect I’ve seen in my career.
Sellers are still hoping to achieve 2021 pricing for their properties, while buyers hear the phrase “buyer’s market” and assume they can purchase homes far below market value. Neither of these assumptions is entirely accurate. As is often the case, the truth lies somewhere in the middle. It’s our job as Realtors to bridge that gap and bring deals together. That only happens when both sides are willing to compromise and meet at a mutually beneficial point.
As a buyer, once you’ve decided what you want in your new home—four bedrooms, three bathrooms, a finished basement, a double garage—you then need to establish your budget. Your budget is the most important part of the process. There must be a clear limit on how high you’re willing (and able) to go with your offers.
Nothing worries me more as a Realtor than buyer’s remorse. The last thing I want is to help someone purchase a home that puts them under financial strain. My approach is always to start with the absolute top of your budget and work backwards from there. If your maximum budget is $1.4 million, then your working range should likely fall somewhere between $1.3 million and $1.35 million.
I always do everything in my power to find you the home you want at a price that fits your financial situation. Where things become challenging is when your budget doesn’t quite match the full list of features you hoped for. At that point, some decisions need to be made. You’ll need to determine which features are absolute must-haves and which ones are luxuries you’re willing to compromise on. You may also need to ask yourself how flexible your budget really is. Are you able—or willing—to spend more in order to get everything you want?
Ultimately, my advice is simple: find your ceiling. Determine the number you are not willing to exceed and work backwards from there.
There are great opportunities in today’s market for buyers looking to upgrade their homes. A new lifestyle in a new home could be closer than you think. It’s time to get off the bench and into the game—and that’s where we come in.
Tate Homes will stand by you every step of the way and make the process as smooth and stress-free as possible.
Contact Tate Homes today, and let’s get started.