If you are following the Ottawa real estate market, you will know that we continue to be in an intense seller’s market. Houses are selling within days of listing, often multiple offers are received, and many homes sell over the asking price.
If you are tempted to take advantage of this market and sell, there are important things that you need to know.
What is driving this Ottawa real estate seller’s market?
Traditionally, the spring market is always busy. This year, the pandemic created a slow start to the year and pent-up demand from anxious consumers. The home sales in Ottawa continue to be strong because of the low inventory of homes, which drives faster sales, and higher prices. With low-interest rates, it continues to be attractive to buy, and sometimes buyer’s panic sets in to buy a home quickly.
Pricing your home in a seller’s market
Establishing a pricing strategy is vital in any market, including a seller’s market. The best approach is to set a realistic price.
Selling at market value or over will depend on the condition of your home. Following a process of repairs, minor renovations, and staging your home will be critical factors in your overall home price. As well, the offer stage becomes interesting because multiple bids often result.
If your home is priced too high and stays on the market longer than similar homes, it could question the quality of your home in consumers’ minds. Similarly, if your home is in poor condition, buyers will be reluctant to take the next step and put in an offer, or a competitive one.
Due to the pandemic, the needs of buyers has also changed; they are looking for different features which may also impact your price.
The process to land a realistic price point can start with discussing your options with a real estate team that knows the market trends and dynamics and consumer buying perceptions.
Reviewing multiple offers
Receiving multiple offers is an exciting process as a seller. Surprisingly, the highest offer is not always the best offer.
You must take into account the viability of the buyer and his/her offer and ask questions such as:
- Is there financing in place?
- Does the buyer have a property of their own that they need to sell first?
- Is the buyer just buying for land value?
Multiple offers still require negotiation
When a real estate team is negotiating on your behalf, they can employ various strategies to improve the offers. For example: When there are one or more buyers, a counter-offer strategy could be used. If there are multiple offers, a possible plan is to ask all buyers to resubmit their best bid. The negotiating process can be an extremely stressful experience, but ultimately you can get help to manage this process.
Starting is easy with a free home evaluation
Even if you are considering listing your home, or you have committed to selling, a home evaluation is an excellent place to start. A professional assessment with our Ottawa real estate agents involves conducting a comparative market analysis. This includes evaluating sales activity metrics like listing information, average prices, and days on the market to develop a realistic price.