September happened fast and with the recent BoC rate announcement upon us, I am finding myself having numerous conversations with homeowners considering a lifestyle change, most specifically. You know, kids have headed off to university or college or are now moving to their own nests and homeowners are finding the space too large or maybe in dire need of updates and moving is the solution. The conversations turn to the expectations of sellers. Yes, sellers, we are in a completely different market. Forget February/March and April of 2022, that market has quickly passed. Will we see another market like this? Even top economists can’t answer that. Case in point, take a look at what
CIBC posted recently. They believe this next rate increase by the BoC will be the last until end of 2023. I highly doubt that, I mean, I’d love for that to be the case but I think we are in for a couple more. I truly hope not. So, CIBC can say what they want, TD can post
headlines like they are estimating a 25% drop in average sale price for 2023 but, if you read into the article, it really means an 11% drop over the highs of last year. Sellers, roll up your sleeves and listen carefully as I am going to tell you my opinion on what I see in the market and why homes are NOT selling. Number 1, your realtor needs to be on both the local board, where you property is located, as well as the Toronto Regional Real Estate Board (TRREB). How can your realtor possibly represent you without having all of the recent comparables in front of them?? I watched one specific house where the realtor listed the home approximately $100K less than what it could have been listed at when it first hit the market, IMO. Unfortunately, this realtor was not on the local board, just on TRREB and had only access to properties that had been listed and sold on TRREB, completely missing recent sales on only the local board. Number 2, expect that any offers that come to the table may or will have conditions, such as financing or home inspection. We’ve somewhat gotten used to offers with no conditions and competing offers was not out of the norm. As a listing agent, I can only grill the buyer agent to a point, to find out just what the financial wherewithal of the buyer is. When I am working with buyers, I prefer to put an offer in with conditions as I am protecting my buyer should the financing not come together or the inspector finds something untoward in the property we are considering. So, sellers, you can expect to see an offer with conditions in the market today. Number 3, it’s important to ask what the services are that your realtor offers. Most realtors offer different packages so you’ll need to compare apples to apples. It’s a shame to see properties listed without photos that best represent the property, something I am seeing more and more daily. So, sit down and have an informed and comprehensive conversation with the realtors you are considering, we all have our license but we present differently. At the end of the day, I feel the best fit is who you feel the most comfortable with and who listens to you. Of course, I am always open to having a conversation, feel free to contact me directly at 416.575.4726.