Sold Over Asking. Again.
Friday Jan 22nd, 2021
I've been sitting at my desk for 20 minutes or so, trying to figure out how to write this blog without it sounding like boring real estate advice.
Stick with me - I think I've figured it out.
Remember when we used to go places? Specifically sporting events and concerts? Remember how expensive those tickets were? Remember waiting for tickets to go on sale, at the box office or on the website hitting refresh every two seconds?
Tickets for the in-demand events were always unrealistically expensive but instead of refusing to pay exhorbitant prices, we paid them anyway. We went to the concert or event, took pictures, recorded videos and threw it all over social media to make our friends jealous. The more attention we got, the more we could justify paying a thousand freaking dollars for tickets to see the Leafs lose a three goal lead in the third period.....again.
Why were they so high? These rocks stars and athletes were already millionaires and their employers were raking in huge dollars every day.
The demand was high and the supply was very limited.
Flash forward a year or so and we're seeing that with houses. Limited supply, only a few for sale at any given time, people lined up around the block (sometimes literally) to buy them. Why are so many people interested? Because the list price is still the same as it was a year ago when the demand wasn't as high, and buyers assume they can afford it.
The reality is, the house will probably sell for $100,000 over asking, or more. The agent priced it low, hoping to get as much interest as possible. When 200 buyers see it and 30 of them decide to make an offer, you better believe they are all offering the most money they can afford to offer. It seems like some people will offer anything to 'win' the property, regardless of how much it's 'worth' on paper.
When a property is priced at or near it's market value, you might get less interest and fewer offers, but the house will still sell.
Why am I telling you this? For a few reasons.
- If you are looking for a home without a REALTOR, you are doing yourself a disservice. You are probably searching based on the asking price which will likely be far less than what it will sell for. I can find you the actual SOLD prices so you have a better idea of the properties you should be looking for.
- If you are thinking about selling, a good REALTOR will ensure the the best strategy is used to get your property the most exposure while ensuring only qualified buyers are viewing the property and making offers.
- If you are both selling and buying, you might get more than you expected for your property BUT you will also pay more for the one you buy.
- We are still very much in a pandemic. We are being told to stay home, wear masks, physically distance, do business virtually and take every precautionary measure we have available to us. 200 people in and out of your house over a three-day span is stupid. Being one of those 200 potential buyers isn't safe either. I can help with virtual solutions as well as ensure the transaction is completed as safely as possible.
Yes - lots to think about. That's where I come in. I can help.
All it takes is one phone call or text to get the ball rolling!