Tuesday, April 5, 2011

Through The Eyes of Buyers Part 2

As previously stated the issue of pricing remains one of the key elements in successfully getting your house sold.  Sellers and in many cases REALTORS® are failing to acknowledge this which is why we have such a high ratio of "expired" versus sold listings.
  Unfortunately and despite the effort some of us put into it, pricing a property is not a pure science.  Comparable sales analysis is the best methodology out there for pricing a property but for some homes and or parcels of land there are no comparables.  Increasingly, I find it helpful to have a seller(s) look at their homes through the eyes of a buyer(s).  Buyer's certainly expect a property to meet certain conditions in terms of appearance.  It is up to date, nicely decorated, well maintained, free of clutter etc. etc. but it also goes much beyond that.  At specific price points, certain other expectations emerge that help to establish a home's value.  At $350,000+ a home better have a nice master bedroom with an ensuite bath.  When you start getting up in the $500,000+ range, today's buyers are expecting finishes commensurate with that price such as granite or other such material for the counters, upgraded trim, better than average bathroom fixtures and kitchen cabinets etc.  Many homes in our market are over-priced from the standpoint the features and finishes don't live up to the expectations of the buyer(s).  For example, a home listed in the $800,000, $900,000 range that has laminate floors versus real hardwood, Arborite counters not granite, hollow core "800 series" doors and other such finishes typical of a mass produced, tract subdivision home is never going to attract a buyer willing to pay that price.  Despite a detailed comparable market analysis or other mathematical gyrations, a property is ultimately worth what a willing buyer is prepared to pay and if a buyer(s) sees a lot of cost ripping out what they perceive are inferior finishes, they will never pay an inflated price.
  Looking at your home through a potential buyer's eyes is something your listing REALTOR® should help you with.  One other key point to consider is this.  When you finally get an offer on your home at a price you turn down, essentially what you are doing is buying your own home for that price.  At that very moment, looking at your home through a buyer's eyes is critical as you need to ask yourself, would I pay that for this home?  Why?  Because that is exactly what you are doing when you turn down that offer.       

No comments:

Contact Me

Royal LePAGE Locations North (Brokerage)

330 First Street, Collingwood, ON L9Y 1B4


Direct: 705-443-1037

Office: 705-445-5520 ext 230


My Profile

Rick relocated to Collingwood from Toronto in 1985 through a transfer with Goodyear Canada. In 1987 Rick was recruited by a major client of Goodyear’s, managing their Canadian business based in Barrie before moving to Chicago in 1992 as Vice President of Sales & Marketing. Upon returning to Canada in 1996, Rick ran an industrial products manufacturing company in Stratford, Ontario. In 1998 Rick returned to Collingwood with his two children. Rick is a licensed real estate Broker with Royal LePAGE Locations North in Collingwood and holds his MVA designation (Market Value Appraiser-Residential). He is an active volunteer in the community serving several years on the Board of Directors with the Collingwood Chamber of Commerce as Treasurer, 6 years on the Board of Directors for the Southern Georgian Bay Association of REALTORS® of which he is the Past President (2008) and currently serves on a committee with the Ontario Real Estate Association. Rick is a diverse executive manager with extensive experience in strategic planning, manufacturing, finance, human resources and quality assurance management.