Selling a home in the current climate has its challenges – we are definitely no longer living in a world of bidding wars and offers way over asking. There are fewer buyers out there right now, and the ones who are in the market are often looking to get the best possible deal. But with the right agent, a smart strategy, and an understanding of what to do (and what NOT to do), sellers can still do well.
According to Property.ca Inc. agents, here are some of the biggest real estate mistakes Toronto sellers can make – and some helpful tips on how to avoid them.
1. Comparing the market we’re to the market we were in a year ago. After seeing the high prices people were getting at the height of the market, it’s hard not to want the same. But we are in a much different reality now. Those way-over-asking prices were driven by buyer competition, and as interest rate hikes have slowed the market, many buyers have stepped back – things are a lot less competitive out there.
The best way to set realistic expectations on price is to do your homework: see what has sold recently in your neighbourhood or building. Here’s an easy way to do that.
2. Not doing your due diligence when choosing a real estate agent. To sell a property in this market, you need a skilled agent – one who knows how to market a property well and get it noticed by as many potential buyers as possible. Not all agents are created equal, and it's okay to talk to more than one to find the right fit. Your best bet is to go with someone who works in real estate full-time, really understands the market and has great reviews/testimonials to back them up.
Another mistake is choosing someone based on a reduced commission or big promises for what they can get you for your property. Instead, choose the agent you think will offer you (and your buyers) the best experience.
Read more: how to find the right agent
3. Not understanding the cost of selling. From fixing things up to paying for storage to factoring in your agent's commission, going into a sale with a realistic budget can help you avoid unpleasant surprises and make things a lot less stressful.
4. Trying to sell it yourself. Selling a property, especially in a slow market, takes skills most homeowners don't have. For one, you have to have a deep understanding of the market – one you’ll only get by buying and selling properties and doing A LOT of research. You have to be a smart marketer and savvy pricing strategist to get the listing noticed. You’ve got to be a good negotiator, with the mix of people skills and nerve to know how to get the best price without alienating buyers. And you need to be connected to great lawyers, mortgage brokers, stagers, and other pros.
But even in a hot market, agents add tremendous value, managing the process, negotiating on your behalf, and ensuring you get the best possible price for your property. As in all things, you get what you pay for.
5. Using a discount brokerage. Discount brokerages charge less because they offer less. And while paying less commission is certainly appealing, that same “you get what you pay for” maxim applies here, too. Typically, these are no-frills operations that offer basic services, like listing a property on MLS. Unlike a full-service brokerage, they don’t usually offer cleaning or staging support, professional photography or comprehensive marketing. Discount brokerages make their money by focusing on volume, not high-touch service.
And a discounted commission isn’t exactly an incentive for buyer agents, so you may not end up with access to as large a pool of buyers. With fewer buyers and minimal marketing and support, the $5K or $10K you save in commission could end up meaning you get $50K or $100K less for your home.
6. Not cleaning/decluttering. A dirty, cluttered home appeals to exactly no one. Clean everything until it shines (we recommend bringing in the pros), deep clean those carpets, banish pet hair, and make sure unpleasant odours like litter boxes, smoke, and food smells are gone.
Get all the stuff off your kitchen counters, store your collections, and while you’re at it, pull half the clothes out of your closet and put them in storage. If they're all squashed in there, it'll look like there's not enough space. And don't forget to tidy up before each and every showing. It's a lot of work, but it's worth it to make the best impression with buyers.
7. Not fixing what needs to be fixed. Some of the smallest fixes can get you a big return. So recaulk the shower, fix that leaky faucet, repair chipped paint, and replace the cracked toilet. It might cost you a bit to fix everything up, but if you don’t, that bad first impression will mean lower offers – or none at all.
Photo credit: Brogan Home Staging & Redesign
8. Skipping the staging. When you’re looking at listings, which ones appeal to you? The ones with photos of stuffed closets and dated furniture? Or do you prefer clean, uncluttered spaces with great lighting and beautiful furniture? It’s natural – people are attracted to listings that show a home at its very best.
Home staging is even more important if you’re selling a vacant property: when a place is sitting empty, it’s a lot harder for buyers to picture how their stuff will look in the space.
9. Not using professional photos. What would appeal to you more as a buyer? Gorgeous, bright, pro-shot pics that really showcase the space, or a bunch of blurry snaps that make things look small, kind of dark and just kind of “meh.” (Don’t even get us started on listings with NO photos.)
Great photos are EVERYTHING in a real estate listing. If you pass on those, you’ll also be passing on a lot of potential buyers who can’t see past the not-so-great pics, no matter how amazing your property actually may be.
Read more: do this before you sell
10. Limiting showings. Yes, it’s a hassle to have people traipsing through your home constantly, and a giant pain to keep it clean while you’re living there. But when you say no to showings or tell buyers’ agents that viewings can only happen on certain days, you’re limiting the number of potential buyers – and your chances of getting a good offer.
Ultimately, selling your home is about having good information and guidance – and making it as appealing as possible to the greatest number of buyers. Connect with us to see how we can help you do just that.