Each year, the spring seems to set the tone for the rest for the year. Whether it is a buyers market with lots of selection (as we saw from 2008 to 2012) or if its a sellers market with little selection and bidding wars (like Kelowna saw in 2004-2008, and Calgary is seeing right now). The question is, what will this spring hold and how can sellers capitalize on it?
Here are 6 market insights for sellers to get started
When Is A Great Time To Sell? Right Now!
It sounds like a cliché, especially coming from a REALTOR®. “Yes, of course you’re saying that now is a great time to sell.”, but bear with me.
– We’ve had a longer than usual and colder than usual winter which has created some pent up demand from buyers.
– Looking at the sales data from the last 23 years of Kelowna’s real estate, April, May and June are historically the strongest months of the year – with May just slightly ahead of the rest. See our video, “When is the best time to sell your home in Kelowna?”
– Mortgage rates are still at historical lows, (especially with BMO’s crazy 2.99% 5 yr rate)
– The Finance Minister of Canada has just stepped down, after being in the same position for 8 years, we have come to know Jim Flaherty and what to expect. Now, there is uncertainty as some people are worried what the new Minister will bring for Canada.
– 2013 saw a big shift from a buyers market to a balanced market from April to November and 2014 has started stronger than 2013 did.
All of these point to a strong spring market that you do not want to miss.
Make It Pop!
This is crucial. In this day and age, over 95% of buyers are looking online. Curb appeal is no longer their first impression. It’s now ‘web appeal’. It is very easy for a buyer to be looking and simply click, ‘Next’ and skip to the next home when they don’t see what they like immediately. Photos are extremely important! Make sure you have fantastic, not just good or decent (and hopefully not bad) photos of your home. In fact, you should insist that your agent have professional photos taken. Make sure it jumps off the screen to get the buyers attention.
To take this a step further, choose an agent that uses video. If you have been looking online for a new home for yourself already, you will know what I’m suggesting. Video is fantastic! It makes your home stand out, the buyers can see more of the floor plan and how it is laid out. We have sold homes over the Internet on multiple occasions because of a video. No, I’m not talking about a slideshow of photos they have already seen, I mean a real video walk through.
Here’s an example:
Know Your Numbers. 60%
60% of homes sold this year will sell between April and September. By putting your home on the market at the beginning of the selling season, you will increase your chances of a successful sale; especially compared to those homes that have been sitting all winter and have not yet sold.
Price It Right
If you have read about selling homes in the past, you will have seen the graph to the right with the red bell curve on it.
Reality is, that has changed (see the blue line). It is now even more important to price a property right when it is listed, or at least to keep an eye on it and make a change in the first 2 or 3 weeks. As soon as your property is listed, buyers are like hawks who are constantly scouring the market for their new home, will find it. If they don’t see value in it, they will simply click, Next!
Bidding Wars Aren’t Back
We likely won’t be seeing too many bidding wars this spring, as we will likely be in a balanced market, but that doesn’t mean you can’t make it happen that way! We can create a sellers market and build hype around any property, and in any market. It’s all controlled by Price and Marketing. With a combination of these two, you can make up for any short fall in Location,Terms or Condition and can build up enough excitement to create a bidding war and make people go crazy for your property. It’s a very fine line to do it right, so make sure you consult a professional.
It Pays To Be Ahead Of The Curve
When you are selling anything, supply and demand regulates the price. By listing your home now, you will have less competition, which in turn means that buyers have fewer options when they decide which home they would like to buy. Again, looking at the last 23 years of listings, on average, December has the fewest # of listings and it builds up through the spring, peaking in June. List your home now to have a better chance of selling and for more money, as you will be in a better position when it comes time to negotiate the deal.
If you have any questions or would like to list your home, give us a call anytime on our direct line at 250-868-8000.