Selling Myths & Facts

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Selling Myths & Facts2016-12-30T22:13:31-05:00

1. Listing a higher price than you expect to get is a good idea

Myth. In a market where homes often sell for under-asking, it can be temping to build the expected discount into the price, but this can backfire badly. If a home is listed above market value, savvy buyers and agents will sniff this out and might not bother to look at it. And, it could cause your home – which might have sold quickly at the right asking price – to sit on the market long than it should. If the asking price is truly justified and the seller can afford to wait for the right buyer, that’s another thing altogether.

2. Open houses sell properties

A bit of both. The truth is, open houses aren’t usually a direct route to finding your buyer. Qualified buyers are doing their research online and making informed decisions about which properties to visit. The chances that your buyer is going to walk in off the street because of an open house sign on the corner are slim to none. However, open houses do have value. For one thing, they can generate excitement and a sense of urgency, especially when shared on date-driven social media like Facebook. They can also offer an opportunity to get honest feedback about your listing, which is why it’s important that your open house is hosted by your agent or at least someone on the team. Some agents use open houses as an opportunity to cruise for new clients. Make sure yours has good reason for suggesting the open house, and offers real feedback on the experience.

3. Agents sell their own homes for more

Myth. In Freakonomics, Stephen J. Dubner and Steven Levitt posit that Realtors interests are not always aligned with their clients’. To prove their point, they looked at how agents sell their own homes. Looking at data from pre-2005 Chicago, they found that agents leave their own homes on the market for an average of 10 days longer and net 3% more than their non-agent compatriots. Sounds pretty damning, doesn’t it? But it’s important to note that the market has changed drastically since 2005. In fact, that 3% number had already dropped from 4.9% over the previous 10 years. What changed? The internet arrived in a big way, erasing the major advantage agents had over non-agents. It would be fascinating to see this topic revisited by the Freakonomics duo now that MLS has levelled the field.

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Winter Is Coming

Do you have your snow tires on yet?  This region has certainly had enough winter weather already to warrant it.  Fun fact though:  Last year’s first school “snow day” was also mid November; so it really shouldn’t have come as a surprise we guess.

Speaking of surprises, when Santa came to town for the parade recently, I’m sure he was astonished at how few homes of any kind there are for sale this year.   And he’s right, active residential listings were down 7.1% (948) this October compared to the same month last year.  And compared to three years ago, The Kingston and Area Board has a whopping 42.6% less inventory (58.4% less than 5 years ago).   Total months of inventory for October five years ago was 8…this year is 3 (that’s 5 months less available listings at current average sales rate).  Sales were actually up 2% this October too with 308 total sold.

That lack of supply, with still plenty of demand, certainly helps explain why the average price is up 8% compared to last October, and 7.6% year-to-date.  The average price has gone up on approximately 7% per year over the past 5 years for our Board.  Now, we know that all the new builds and higher end homes are still a contributing factor to that stat, but depending on location and type, there are still great returns to be had if you’re a seller…even better with excellent staging and marketing. 😊

Plus, with the election over and the economy still humming along, there is plenty of reasons to be optimistic about our local real estate market.  For Sellers, there are still loads of Buyers eager and motivated; and we can help prep and market for maximum profit.   For Buyers, with recent added government incentives and stable interest rates, you may be able to afford more than you originally thought.  So speak to your trusted mortgage professional and then contact us for detailed insights into how to move forward based on your criteria…your best present this Holiday Season just might be a new home!

by the numbers…

Is there anything new about this market? You bet there is!  Now, if you’re buying, don’t get too excited we’re not about to tell you we’re seeing a shift back toward a buyers’ market. Kingston’s market is at a historic low for listings, and home prices are continuing to reflect this reality.

Competitively priced homes have been selling quickly for quite some time now. As a matter of fact, for the entire board (Kingston, Gananoque, Napanee, Frontenac County, Lennox and Addington, the Islands) over the last year the average time on market was a mere thirty six days, and the average sale price was $382,000.
If we break things out a little more we start to get a better sense of just how hot the Kingston market is (and has been) compared with its surroundings.
In Kingston for the months of JULY, AUGUST and SEPTEMBER (so far):
Average sold price = $417,530
Average days on market = 28
For the rest of the board the numbers over the same period were as follows:

Average sold price = $338,894
Average days on market = 42
Interestingly, what’s currently listed for sale doesn’t look anything similar to the numbers above for SOLD properties.

Active listings In Kingston:

Average sale price = $546,548
Average days on market = 99
For the rest of the board the numbers over the same period were as follows:
Average sale price = $535,354
Average days on market = 78
There’s a lot we can take away from these numbers.  Here are a few thoughts:
1. If you’ve got a home to sell for under $500,000, there’s probably never been a better time to list.
2. If you’re looking to buy a home listed for over $500,000 there may actually be a few deals to be had. (If you’re selling a home for over $500,000 now may still be a great time to list – it’s just important to get the price and marketing right)
3. If you’re looking to buy a home for under $500,000 get your paperwork together, and get ready to pounce when the right place comes along.

If you’d like to learn more and/or have questions for us please don’t hesitate to get in touch…we love talking about this stuff!