It's Spring Time: Are you the Lamb or the Lion?
Real estate spring season is like what they say about March: It comes in like the Lion and leaves like a lamb. So who do you want to be? The Lion, strategically and well positioned for the rush of the market or the Lamb, sitting like prey or simply ignored by the market? It is spring time, the strongest real estate season of the year and if you are going to sell, the best time is NOW, the best time of the year...so ask Mike how you can become the Lion.
Interest Rates at Historical Lows: MIX this with Spring and real estate is HOT HOT HOT!
Interest rates in Canada have also be reduced which is incredible when you realize that rates are at historical lows.
Couple these two facts: you couldn't be in a more fortunate position to sell your home and then move on with your life to purchase another home at attractive low interest rates.
The Price is Right
Please Price it Right: if you don't sell now at reasonable market prices as proven by the comparables which did sell (as provided only by your real estate agent), you will be still paying mortgage payments while other homes are selling and locking into today's low rates so they can move on with their lives and purchase their dream homes.
Add up all those mortgage payments for a period of a few month that you have listed your home and subtract that total from your current asking price and it will become clear how much money you have actually lost due to overpricing. The solution is to always list your home at a price based on comparables, appreciation and unique features that sets your home apart from the rest.
Let's take it a step further: assume you believe your home is worth a specific amount against the advice of your agent who has shown you all the comparables and has suggested a different price. How serious are you about selling your home? Do you risk burning up time on the market and paying your monthly mortgage payments all in the name for a price which is above market tolerance and to which you are hoping that chance and lady luck will come your way? Maybe it works out for you and buyers come with an offer - the risk is how long it would have taken for that to happen if your home is priced over the comparables competing with you on the market. How many mortgage payments would you be paying beyond the average days it takes for comparable home sto sell in your area? Would these mortgage payments wipe away the profits you would have made with a higher asking price, that is a price exceeding the comparable values? It's a risk...is it really worth taking?
How Serious are you Really about Selling? It's your monthly mortgage payment...
If you are not seriously dedicated to selling and moving, then the misguided assumption is that there is nothing lost in pricing your home above the comparable competition who have successfully sold.
The illusion: The misguided idea is that there is nothing to lose...if it doesn't sell, no sweat, we were just testing the market anyways, we were not in a hurry to sell, we can kick back all we want. The thing is this....no one understands why you bothered to sell at all. It's sending a confusing signal out to the market creating and causing skepticism about your home. And when it really comes down to a serious need to sell your home, the market will now have a history to refer to about your house and will wonder whether there is something wrong with the house to begin with....even if there is absolutely nothing wrong with the home!
The facts: The market catches on quickly, your mortgage payments continue being paid, you are still spending money and time advertising, your house has now gone public which means less private time to you and your family, more phone calls to field, less qualified buyers and fewer real estate agents who will feel motivated to bring their buyers to your home....think about it...they have to make a living, so why would they bring their buyers to see your home when they will be guaranteed compensation through other agents and their homeowner clients? Their time is also limited and their buyers generally feel more secure working with agents than on their own - there is also greater legal representation, protection afforded to buyers and sellers willing to work with agents with compensation and finally most buyers will trust their agents' advice as to whether one home is reasonably priced or unreasonably priced because their agents will show them the numbers, the proof, the comparables and NO ONE, INCLUDING YOURSELVES EVER WANT TO OVERPAY.
It is less about the commission...it is about how serious you are to sell
Think about it for a moment...the commission never gets paid if you do not sell.
Think about it for a moment... the amount paid actually changes depending on the selling price. Say you were asking $200,000 and your home sells for $195,000....the commission is on the $195,000, not the $200,000.
Your agent is motivated to sell at the highest price possible because he/she stands to make a higher commission and you get to SELL your home at the highest reasonable price possible given market conditions. The agent will make less commission the lower the home sells for, so please feel reassured...your agent wants to see maximizing of price in your best interest because you are both working towards a common goal: maximizing selling price and maximizing salary.
RED FLAG: if the home is OVERPRICED, the agent will not see his commission and you will not see your house sold. NO ONE IS MOTIVATED in this scenario, so please...listen to your agent, read the comparables and sell your home based on FAIR MARKET VALUES.
Contact, AppointMe, Listen, Decide - the choice is entirely yours.
If your listing has expired or if you have tried selling your home on your own, then seriously make it a point to call me for an appointment. I will layout the strategy that will ensure you are informed and in a best position to sell your home NOW or SOONER rather than LATER, keeping your profits and avoid letting them evaporate through prolonged mortgage payments while your home remains UNSOLD beyond the average days that most comparables take to sell in your local market.
Take advantage of SELLING NOW with Mike Lederman: the spring season, locking into low interest rates, buying that dream home at low interest rates.