How To Navigate A Shifting Market

Photo by Miguel Á. Padriñán via Pexels

We’ve all felt the shift. No longer are all properties flying off the shelves. Here are three tips for buyers and sellers to help make your next move easier.

3 TIPS FOR BUYERS

1.     Know Your Budget/Get Pre-Approved

As interest rates rise, a homebuyer’s purchasing power decreases as more of their money will be used towards interest payments rather than paying down the home. With more rate hikes scheduled for this year, why not lock in a rate now before they rise again? Rates are not valid forever. They usually are good for around 2-3 months.

2.     Do Your Homework

In fast-paced markets, there’s simply not enough time to do all your homework. We always suggest to our clients to spend an afternoon or more in the neighbourhood of interest. After all, you may be moving there. However, sometimes that’s tough when a property gets listed and two hours later there are already offers on it.

This market is a bit different. Now, buyers have time to go back to the property for a second time, explore the neighbourhood and make sure all those boxes are ticked before submitting an offer. Buyers now have the luxury of time. Take advantage!

3.     LOOK FOR DEALS

Look for the properties that have been lingering on the market. Maybe they need a little TLC (a fresh coat of paint, new lighting fixtures, etc), but those are small fixes that are budget-friendly. If you can see past the dirty walls and outdated kitchen and bathroom, it could be a great investment!

Note, yes there will be opportunities, but great properties that look the part will always sell and garnish more than one offer.

3 TIPS FOR SELLERS

1.     ASSESS YOUR RISK TOLERANCE

In any market, its important to do what you feel comfortable with.  However, in a shifting market, it’s even more important to understand the potential risks of buying first, then selling.  Whatever route you choose, be conservative with the sale price you think you’ll get on offer night. Hopefully, you’ll be pleasantly surprised.

2.     LIST PRICE MATTERS

In a shifting market, it’s important to use comparables that have recently sold. If you’re looking at the Toronto market, try to find very similar properties that have sold within the past 30 days or less. Using comparables that sold in February of this year won’t give you an accurate number and will lead to disappointment when you don’t get that on offer night. Also, know that great properties will garner more than 1 offer on offer night even in a shifting market.

3.     THE POWER OF STAGING AND MARKETING 

In this market, it’s really important not to cut corners and make sure your home looks AMAZING. We work with great painters, stagers, handymen, home inspectors and the works to make sure your home shows its very best. Then, we market the crap out of it. We want the most exposure (i.e. eyes on the property) in the hopes of getting you a great sale price.

 This market can be tricky to navigate. Proper guidance is key. If you have any questions or want to schedule a call, we’re always here for you.