b-LOG: Taking the Market for Granted
A funny thing happens when a market swings in the favour of one party over the other. In this bLOG, we’re talking specifically about a seller’s market. In particular, the seller’s market that Niagara has been experiencing for about 16 to 18 months straight.
“What is a seller’s market?”
It is when there is high demand for homes on the market. Put simply, a heavy seller’s market is when the number of qualified buyers far exceeds the available inventory. Those variables create multiple offers and a reasonably frenzied marketplace.
When we get entrenched in a market like we have had though, the stories start to fly. “Did you hear what they got for their home?!” Neighbours tell neighbours who talk to people at work who tell cousins who tell their friends on Facebook and next thing you know, as far as the general consensus goes, every house got market value plus 60% regardless of how it showed.
“Well, if they got that for their house, we should definitely get ‘x’ for ours!”
There is money out there and every seller, with varying levels of realism, wants as much as possible in their piggy bank.
And that is where we start to see seller’s take the buyers for granted, on occasion, almost to the point of disrespecting the market.
Examples include unmade beds, kitchen sink full of dishes, weed infest gardens, barking dog left at home, broken front window and a 2nd cousin smoking in the basement bedroom.
We aren’t under the illusion that EVERY home is going to be pristine and in perfect condition. Where the seller takes the market for granted in this scenario is in pricing their home at or above the same price as the updated, clean and beautifully presented home down the street. And/or they willfully ignore the basics when walking out of their home prior to a showing.
See early statement where the seller proclaims that their home is worth ‘x’.
That implies that the buyers are buying with blinders on and no regard for relevant sales or prudent investment. Or in other words, they’re being taken for granted.
We also see sellers who ‘throw their home at the market (at an outrageous price) to see if they find someone who will to pay this crazy price”. Once again, underestimating the buyers.
There is a fine line between selling in a free market economy and ignoring reality. Where the fine line gets clear is when the market shows the slightest sign of a change. Those sellers that take the market for granted are the first left at the roadside. When the average days on the market hovers around 9, all of a sudden they’re at 45 days on the market and then just like that, the buyers are carrying the bigger stick. In a nutshell, the seller has been caught exposed.
Rather than approaching the market with a “me, me, me” perspective, approach it with a “how can I make the product I’m selling (my home) as appealing as possible to the largest number of buyers possible in order to get the most money possible?”
The seller with that perspective wins.
Pricing and presentation are 2 enormously important parts of selling anything, especially a home. Good news! We can help with both.
To discuss this and any other real estate concept, please feel free to contact us anytime.
Photo credit goes to Jay Castor.
Thank-you for visiting.