There is very rarely a time when you want to pay too much for a product or service. In fact, I’m having trouble thinking of a time that I would be happy to overpay for something.
Let alone, a new home.
It’s natural that a Buyer will to want to pay the lowest price for the best house. And, it’s expected that a Seller will want to get the most amount of money for their home. How do we find the magic number that satisfies both Buyer and Seller? Generally, it’s a bit of a compromise, and each side has to give a little.
Of course, there are sometimes exceptions to this “rule” – you might find yourself in a Buyer’s Market, or a Seller’s Market – which inevitably affects the outcome of the home buying process.
How do you know if you are in a Buyer’s Market or a Seller’s Market?
If you are buying or selling a home and find there is is an abundance of homes to choose from, with fewer instances of multiple offers, fewer showings – you are probably in a Buyer’s Market. Homes spend longer on the market, and might sell for under the asking price. This is the result of less demand for more product. The Buyer’s hold more power in this case.
If you are buying or selling a home and find there is are less homes to choose from, many buyer’s visiting homes, more homes being sold in multiple offers – you are probably in a Seller’s Market. Homes sell quickly, and will usually sell for at least the asking price, if not more. This is the result of more demand, for less product. The Seller’s hold more power in this case.
We can’t forget about a Balanced Market – there is equal demand for the product available.
How do we settle on the right number?
There is a bit of an art to it – knowing what kind of market we are in does help, however an in depth knowledge of the area and sales history for the home and neighbourhood in which you hope to buy or sell is very important.
I will look for any number of things when settling on the right price for a home. Anything from the size of the home, to neighbourhood features, to walkability.
My goal, as your Realtor, is to make sure that you are buying or selling your home at the absolute best number possible. Let’s talk more about how that can happen.