KNOWLEDGE EQUALS POWER
Buyers wise to study market closely
Just as a coin has two distinct sides, buyers and sellers have separate objectives and motivations during a home sale.
Ultimately, during any transaction, knowledge is power. Firsttime homebuyers can aid themselves by looking at why, when, where, and even how a home is put on the market, helping them figure out the best time to buy in order to reduce short-term costs while increasing long-term satisfaction.
Knowing what works for home sellers could be a major asset for homebuyers, who can apply the information and make it work in their favour.
Tarik Gidamy, co-founder of brokerage TheRedPin.com, has outlined eight tips and trends for sellers to help maximize their return.
1 Timing might not necessarily be everything, but it is an important factor to help increase exposure. “Fridays are the best day of the week to list a home for sale,” Gidamy says. “Potential buyers are looking at listings in advance of weekend open houses, and newer listings have the greatest appeal.”
2 Along those same lines, May is the best month to list a home for sale. May delivers a boost in real estate listings, as well as a larger pool of buyers who wait to begin their search until there is greater inventory to choose from. More buyers means more competition, leading to better offers. Research from TheRedPin.com indicates that between 2012 and 2016 homes sold for an average of $18,650 more in May than the calendar year average.
3 What makes May such an attractive month for home listings? Time and money. “One reason is that parents are gearing up for their children’s schooling,” says Gidamy. “Whether they’re upsizing or downsizing, parents want to get settled into a new place before the school year starts. Second, most people get tax refunds around May. That boost can motivate people to start looking at homes and exploring their options.”
4 Home sellers can benefit from working with an expert who knows what they are trying to accomplish. According to Gidamy, motivation to sell and price are keys. “If you price yourself outside of the market it’s going to really hurt,” he says. “A realtor or local expert can keep you abreast of market trends, and any other factors that materially affect the market and location. They could simply convince you to hold off awhile, if that’s the best move.”
5 Proper staging is one of the keys to selling. “I used to take out a wrinkled, ugly dollar bill and a nice shiny one, and ask which one people preferred” Gidamy says. “Any bad wrinkles are going to come out during the showing, or eventually in the inspection, so you might as well get those things out in the open. That’s another reason people wait until spring to buy, so they can see the different landscaping options.”
6 As the amount of competition ramps up, exposure becomes more important. “You want to be on the MLS system,” says Gidamy. “Once we list a house we send out something called ‘Just Listed’ to keep people up to date on our latest offerings. We aggregate a lot of data as well, to keep people informed and increase exposure.”
7 Use any and all information available to help forecast what home values will look like down the road. Says Gidamy: “sellers should keep abreast of supply and demand, and the peak opportunity for a surge. For instance, in an area where you have LRT expansion, you know the values around that LRT line are going to increase.”
8 Both buyers and sellers should utilize available tools to inform themselves. “We have an ‘Evaluate My Home’ feature that gives you a breakdown of your home and neighbours in the area,” Gidamy says. “I can take the data and create infographics and help people understand the demographics, the walkscore, the 10-year average trends, etc.” Buyers can use the information to make an informed decision, while sellers can use it to promote their property. In both cases, it’s a win-win.
In an area where you have LRT expansion, you know the values around that LRT line are going to increase.