Did you try to sell your home and can’t seem to understand why it didn’t sell? After the market shift that began in March 2022, it now takes a lot more finesse to ensure a successful home sale. There is a multitude of reasons why a home does not sell: it is over-priced, requires expensive repairs, is in a bad location, etc. This article discusses how to assess the situation, deal with the issues at hand, and suggests strategies and alternatives for your beloved home, which may be in a state of limbo.
Market Value Analysis
Of all things that need to be taken into consideration, your list price is the more important determinant of whether or not your home will sell. It does not matter if your home is the best or the worst home in the neighbourhood, if it is over-priced, it is not likely to sell. Understanding how the market rises and declines over time is the main factor a seller should understand before listing a property. The value of your home changes over time and you need to know what it is worth in the current market.
Drop the Price
If you are committed to selling your home, you may need to drop the price. Price may or may not be the only issue. You will need to have an honest conversation with your agent to determine all possible reasons your home did not sell. Maintenance issues, odours, stigmas, and/or other factors may be contributing. Depending on your desire, time and budget, you may or may not choose to address any underlying issues. The one thing you can do immediately to increase the chances of making a sale is to reduce your asking price.
You may not be able to afford to sell your home at its current market value. Selling at current market value may mean a loss would be incurred – due to repaying your mortgage and paying the fees associated with a home sale. (For more information, please read Costs to Consider When Selling Your Home) In that instance, you will need to try selling at a later date, or after completing any necessary maintenance to help support a higher asking price.
Choose a Different Agent
If you are not happy with the services being provided by your real estate agent, you can ask to be released from your contract. Or, if the contract with your agent is up, it may be time to hire a new agent. You should interview a few different agents and ask them about their market strategy. It takes more than simply listing a home on the MLS to sell a home. Staging, door knocking, direct mail, open houses, social media marketing and more, all play a role in exposing your home in the best light, to as many buyers as possible.
Opt to Rent Your Property Rather Than Selling it
Renting out your property would be an alternative to selling if you do not wish to reduce your asking price. Owning a rental property should be an income-generating course of action, not just covering your mortgage payment. You should consider the financial implication to your monthly budget if the rental amount does not cover all of the home’s expenses. A wise homeowner understands that being a landlord requires careful consideration and due diligence when selecting a tenant. In Ontario, the Landlord and Tenant Board is experiencing delays of up to 12 months to get a hearing if you run into a problem tenant. It is imperative that you conduct thorough background checks on any potential tenants.
To summarize, the first critical phase when selling your home is to know its current market value. Knowledgeable buyers are not inclined to over-pay for a home, especially if an experienced real estate agent assists them. There are options available to you if your first attempt at selling your home was not successful. After careful consideration and honest discussion with a real estate professional, you will be able to make the best decision for your situation. Thank you for taking the time to read this article. I hope you found it helpful in your pursuit to achieve your goals. If you would like any help in the selling process, I would be happy to help.
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RE/MAX Hallmark Chay Realty Inc. Brokerage