Not long ago, the idea of struggling to sell a house was unthinkable. However, the real estate market is nothing if not unpredictable, and conditions can turn around in a heartbeat.
Whispers of economic uncertainty, rising borrowing costs, and inflation can cause people to hesitate to do anything. Significant decisions like buying a home are often the first things to go on the back burner.
What can you do when you’re ready for a change and you need to sell a house in a tough market? The situation may feel daunting, but it is far from impossible. What you need is a little patience, and a whole lot of planning and strategy. In this post, we’ll provide some insider tips to help you experience a successful transaction no matter what happens.
In-Depth Market Analysis
The first step to selling a house in Toronto during challenging conditions is to gain an in-depth understanding of what you’re up against. When you know what you’re facing, you’re in a better position to formulate a winning strategy. Here are a few factors you’ll want to consider before you even think of putting your house on the market.
- How fast are houses selling in Toronto?
- Who are the buyers and how can you reach them?
- What is a house like yours selling for on average?
- What challenges are buyers facing that might impact your sale? For example, rising interest rates lead to higher borrowing costs and a more stringent stress test that can affect a buyer’s ability to obtain financing.
When the market is slow, this market analysis becomes even more critical. The next step is knowing what to do with the information, which is where working with an experienced local real estate agent comes in.
Do you plan to downsize once your house sells? The posts below can help you plan your next steps:
- Should You Downsize When Your Mortgage Renews?
- Should You Retire Near The Waterfront In Etobicoke?
- Your Guide to Downsizing in Toronto in Style
Look Beyond the Numbers
One of the worst mistakes a seller can make in a tough market is to take the numbers at face value or to use outdated information. For example, imagine one of your neighbours putting their house up for sale with a listing price of $2 million.
If you don’t investigate, you may believe your property is also worth $2 million. However, the listing price only tells a fraction of the story. The real number you want to focus on is what the house actually sold for.
Another example is when a homeowner received an evaluation a few months or even a year ago. Real estate can move quickly, and a lot could have changed by then. Current, up-to-date information is essential when deciding on a listing price that will attract buyers in the current market.
Obtain Accurate Date
If you can’t trust your neighbour’s pricing strategy, how do you determine what your house should be worth? Since a competitive price point is one of the most critical aspects of your sale, this is a question worth asking. Fortunately, many real estate agents offer free home evaluations that take current market factors into account. Here are a few aspects they will consider:
- The size and condition of your home
- When it was built
- Any recent updates you have made
- The location and what amenities are nearby
- What similar homes in your area have recently sold for
With an accurate but compelling price point, you don’t just improve your chances of selling your home. You are also well-positioned to earn the highest amount the current market will allow. This is one element of your sale that you will not want to leave to chance.
Manage Your Expectations
Selling a house isn’t always easy even when demand is high. You still need to pull out all of the stops to ensure you get the best possible results, and this means preparing your home and advertising it extensively.
When the market slows down, selling becomes more difficult but there is no need to feel discouraged. It may take longer to find a buyer and you may not earn as much as you would during competitive conditions.
That said, it helps to keep things in perspective. If you plan to buy a new home after yours sells, a lower price isn’t the disaster it may seem at first. You may earn less, but you will also pay less for your new house, which means everything balances out in the end.
Looking for more selling tips? Here is some related reading you will find helpful:
- Elevate Your Lifestyle By Maximizing The Sale Of Your Current Home
- Can You Sell A House In Toronto As Is?
- Should You Sell Your Toronto Home in the Off Season?
Do What You Can to Stand Out
Whether the market is on fire or at a standstill doesn’t matter; you still want to do everything you can to maximize your results. The first step is to determine the sweet spot of pricing that attracts buyers without sacrificing value.
The next step is to prepare your home in a way that captures the attention of as many qualified buyers as possible. Here are a few ideas to help your listing stand out:
- Begin with a thorough cleaning and decluttering of each room in your house. This is the simplest way to make a positive first impression on potential buyers who come through the door.
- Walk through your home with a real estate professional to identify areas of improvement and make minor repairs and updates accordingly.
- For the maximum effect, consider staging your home to sell. This allows you to create a blank canvas where the buyer imagines themselves living there. Several studies strongly suggest that staging can help you sell your house faster while earning a higher return on your investment.
Are you ready for a change in your life that begins with successfully selling your home in today’s market? Reach out today at 647.232.7317 or email ana@asantos.ca to take the next step.