Despite a rise in listings last month, Calgary’s resale housing market remains firmly entrenched
in sellers’ market conditions.
The Calgary Real Estate Board’s latest data shows that even though more buyers listed their homes in May, it wasn’t enough to offset demand. While overall months of supply increased to just over two months, it wasn’t enough to lower prices. Last month’s unadjusted benchmark price reached $455,200 – one percent higher than last month and nearly 11 percent higher than last year. Interestingly, homes priced above $600,000 represented 26% of all sales in May, as opposed to last May when it only reflected 16%.
Depending on your situation, this could absolutely be the right time to sell your property. If you
decide to list, below are the 5 mistakes you should avoid even though it’s a sellers’ market.
1. Pricing Your Home Based on Emotions, Not Data
In a sellers’ market, it’s so easy for people can get sucked into the emotion and hype. They think the sky’s the limit when it comes to pricing their home. A competent REALTOR® will use accurate data so a market value can be determined. It’s critical to use this information to make the best decision and to obtain the highest, quickest sale before market conditions change.
2. Selling it Privately
I’m not just saying this because I’m a REALTOR® – I’m saying this because I’ve seen so many deals go so, so wrong. Remember, MLS® System exposure is just one element of getting your home sold and unless you have experience selling, you are potentially leaving a huge amount of money on the table trying to market your most valuable asset I’ve even seen a few lawsuits due to unknown negligence by a seller who didn’t know what they were doing. The 6K they were trying to save in commissions ended up costing them 20K in damages and court costs.
3. Skipping out on Staging
Buyers in a sellers’ market still need to instantly fall in love with your home and that’s where staging comes into play. If buyers can’t easily picture themselves living in your home due to clutter, lack of flow, or over-personalized décor, they may still make an offer, but it won’t be top dollar.
4. Not Making Your Home Walk-through Ready
Yes, the market is hot, but you still want to make the best first impression when showing your home. A professional, thorough cleaning (to eliminate any potentially offensive odors) is non-negotiable. Clean your carpets. Paint if that isn’t enough. Nasty smells and stains may not keep your property from being sold, but they’ll sure lower the value of your home in buyers’ eyes.
5. No Digital Marketing Plan
Today’s buyer does the majority of their research online, more so since the pandemic. Your listing needs to start with stunning photos, but it doesn’t end there. Buyers expect to see floor plans and virtual tours or videos before they even consider booking a showing.
According to the Canadian Real Estate Association, this trend is only increasing. In 2020 alone, the use of virtual tour or video in all MLS® System listings on REALTOR.ca increased by 10% compared to pre-pandemic levels.
These marketing assets also need to be used as part of a digital marketing plan that includes everything from winning SEO to social media ads. Remember, the goal in any market is to get your listing in front of as many buyers as possible so you get as many offers as possible.
Due diligence is a must in any market
This sellers’ list may seem like a lot of effort with some upfront costs, but it will pay off.
Remember, if you hire a Realtor that offers full-service representation, these items are often included as part of their commission fee. That’s why it’s important to interview at least three Realtors before choosing one. Make sure to ask what they are including in their commission fee and to explain the data behind how they arrived at their home evaluation figure. A competent Realtor should have no problem answering any of those questions.
As always, if you’re interested in learning more about the latest sales data in your neighborhood, or your curious about what your home may be worth in today’s market, I’m happy to chat.