If you’re thinking of selling your home, it’s important to understand the state of the real estate market. In a buyer’s market, there are more properties for sale than there are buyers looking to purchase. This fact can make selling your home a more challenging task. However, with the right approach, it’s still possible to achieve a successful sale.
In this article, we’ll explore four must-know tips for selling your home in a buyer’s market. By following these tips, you can increase your chances of a successful sale and get the most out of your property.
1. Know Market Value
In Vancouver’s competitive real estate market, setting the right price for your property is crucial to a successful sale. Knowing the fair market value of your home is key to setting an appropriate list price that will attract prospective buyers. This will also help you avoid chasing the market down.
According to the Real Estate Board of Greater Vancouver, as of April 2022, the benchmark price for a detached home in Vancouver was $1,993,100. This is up 23.4% from the previous year.
In such a dynamic market, sellers must be strategic with their pricing to avoid getting caught up in bidding wars. Setting a reasonable listing price also helps in negotiating with buyers. This also reduces the likelihood of the property sitting on the market for an extended period and may reduce closing costs.
It’s essential to stay up-to-date with current market conditions. These include real estate prices and mortgage rates. Doing this can help you price your property correctly and have negotiating power in a real estate transaction.
A balanced market, where supply and demand are relatively equal, is ideal for both buyers and sellers.
2. Know the Average Days on Market
Understanding the Average Days on Market (ADOM) is a critical element in the Vancouver real estate transaction process. The ADOM gives a baseline price idea and offers a clearer understanding of the city’s real estate prices. According to the Real Estate Board of Greater Vancouver, the ADOM for homes in Vancouver was around 33 days in 2022.
In a balanced market, such as Vancouver’s, where there are plenty of homes, the ADOM is a great indicator of housing prices and market conditions. A shorter ADOM often signifies a hot market, where homes are selling fast, often at higher selling prices. Conversely, a longer ADOM can signal price drops and increase the buyer’s negotiating power.
Knowing the ADOM can help sellers set a realistic price range, and buyers assess if the asking price is fair. Especially given the recent fluctuations in mortgage rates. Also, consider the cost and impact of basic renovations on the home’s value.
The ADOM in Vancouver can vary significantly across neighbourhoods. So, get localized data to have a better understanding of the market condition. Remember, a stale listing isn’t always a bad buy. It could just be a missed gem in a hot market!
3. Be Prepared for Subjects
A new trend has emerged: buyers are now more frequently incorporating subjects into their offers. This practice allows buyers to place conditional clauses in their contracts. This provides them an opportunity to conduct due diligence before fully committing to a purchase. As a seller, it’s important to anticipate this change and exercise patience.
In 2023, over half of all real estate deals in Greater Vancouver had subjects in the buyer’s offer, up from before. This shows that buyers want to know more about the property and money matters.
To sell smoothly and happily, sellers should know this trend. Keep important info nearby to help buyers and speed things up. In a market as competitive as Vancouver, staying prepared is key to standing out and achieving a successful sale.
4. Remember that It’s All Relative!
A common trap for sellers is to price their property based on what it might have fetched in the past. However, the Vancouver real estate market has seen notable shifts recently. It was seen that there had been a 4% decrease in the average home price just in the last year.
Sellers succeed by setting realistic prices for the current market. They have also been showcasing the best features of their homes and working with experienced agents. They focus on the city’s culture and amenities instead of past prices.
The take-away? Letting go of yesterday’s prices can lead to successful sales today, even in a buyer’s market. Today’s real estate mantra in Vancouver: Price it right, make it shine, and know your market.
Ready to navigate Vancouver’s real estate market with ease? Reach out to the Dave Masson Real Estate Group, your local market expert realtors. Whether you’re buying, selling, or just curious about the current landscape, we’re here to guide you.