BUYER & SELLER BEWARE
RE: OVERPRICED PROPERTIES FOR SALE
Unfortunately, there are some PRIVATE SELLERS & REALTORS® listing properties for sale that are terribly overpriced. There are some Sellers that think by placing an exaggerated price on a property and or placing it in the hands of a licensed REALTOR® or a non-licensed on-line home selling system like KIJIJI; somehow gives credibility to their over inflated asking price! What actually occurs is exactly the opposite.
What actually happens is three (3) things:
1) You miss out on a prospective Buyer that could have been interested in buying your property.
2) The Fair Market Value of the property actually drops below what it originally was to start with.
3) It creates a False Financing & Real Estate Market with disappointment to both Buyers and Sellers.
The bottom line is: if the property sits on the market unsold for 3 to 6 months or even longer, the value and/or net worth of the property actually drops less than if it were priced correctly right from the start, believe it or not, the damage has already been done. One should always remember; the best series of Buyers come within the first 30 days from when a property is first listed on the market; the second best series of Buyers come within the next 30 days; the third best series of Buyers come within the next 30 days and so on. So, by the time you get past three (3) to six (6) months, the truly legitimate Buyer pool has considerably dried up on your property and it leaves you with wondering, “what happened?”
Have you ever driven by a property that had a “For Sale” sign on for what seems like forever? Haven’t you ever said or thought, “I wonder what’s wrong with that property?”. If we’re being honest, we have all said or at least thought that. Now, would you ever seriously consider looking at such a property if you were Buying? If you’re honest once again, no, you probably wouldn’t as it now has a stigma of being unattractive and/or it may have the appearance of having something wrong with it, even though it does not.
For Sellers, if the asking price is ever in question or in debate, it is my suggestion that an appraisal be done by an independent third party accredited appraiser. This will give you an unbiased value of opinion on your property and be a guide in setting the most realistic asking price to achieve the true fair market value. Future Homes & Real Estate Ltd. Brokerage believes so highly in this process, we have a policy – we will credit you back the cost you pay for such an appraisal on the closing date of your sale, in essence, this appraisal ends up costing you nothing!
For Buyers, if the asking price is in question or in debate, I suggest an offer to purchase be made conditional on the property being appraised by an independent accredited appraiser to determine and ensure the true market value of the property be at least equal to the price being offered, otherwise the offer becomes null and void.
By adhering to these two basic principals of buying and selling real estate in today’s fast paced real estate market, you will enjoy and appreciate the peace of mind your asking price and/or your offer to purchase has the credibility and fairness they both deserve.
By Robert Tatomir, Broker of Record
ABR, MVA, RECS, SRES
CREA Canadian Commercial Council
Future Homes & Real Estate Ltd. Brokerage