To Market; To Market

In a red-hot market, it can be easy to overlook some things before you list your house. Shane Little, agent with The Richards Group, shares the five biggest mistakes sellers can make.

1. RENOVATING BEFORE DELIBERATING

Planning a whole-house revamp to supersize your home’s value? Consult a local real estate agent before you spend a dime. “We know what renos will get you the most bang for your buck, and which ones won’t,” says Little. “Renovations almost always take longer than you think, and could delay getting your home to market.”

Smaller fixes like new door hardware, updated lighting and a fresh coat of paint can get you major returns for relatively low cost. In a hot market, even if your house needs major repairs — like a new roof — you don’t necessarily have to take it on if you’re upfront about the issue with the buyer, and provide them with a few quotes from tradespeople. “Buyers often don’t know how much repairs cost, and they can overestimate,” says Little.

2. NOT BEING AT THE GATE WHEN THE STARTING GUN FIRES

If you do decide to go ahead and make changes to your property, make sure they’re 80 to 90 percent complete before you start hunting for your next home. “In a market with low inventory, it can take 3 months or longer to find your perfect house, and you may feel like you’ll have plenty of time to prep your home once you figure out your purchase,” says Little. “Until your dream home wants a 60 day closing and you have to get your home on the market ASAP.”

Your home doesn’t need to be photo-ready, but just be prepared to move quickly once you sign that purchase agreement. If you’ve engaged with us as your agent early in the process, we would have already done a top to bottom assessment and will have managed all the work so you don’t have to. “The actual staging is the last piece of the puzzle,” says Little. “Once you’re ready, it can take as little as 48 hours.”

3. MICROMANAGING THE STAGING PROCESS

Once your agent’s staging and property stylists are working their magic in your home, keep in mind that you’ve hired them to create a look that is both on-trend and sparks an emotional connection with prospective buyers — not to cater to your tastes. “It’s important to shift your thinking,” says Little. “To you, your home is where you’ve made memories and it’s difficult to be objective. When you sell, you’re turning it into a showroom for the next buyer to imagine as their new home. Everything we are doing is to boost your home’s value.”

4. HIRING AN AGENT WITHOUT LOCAL CONNECTIONS

When many houses change hands without ever making it onto MLS, you’ll want a real estate agent who knows everything about your area and is invested in more than just a one-off deal, says Little. “An agent who lives and breathes your specific neighbourhood will have access to information about which comparable homes sold off-market,” he says. “This will give you an advantage with your pricing strategy and put you ahead of the game.”

Local markets also have their own seasonal idiosyncrasies, and within the larger spring and fall markets, there are micro-markets that change week to week. If you work with an agency that handles the most property sales in that area, you can be sure they’re in the know and have the best access to off-market properties. “The East Toronto market is a living, breathing thing,” says Little. “If you don’t have someone with their finger on the pulse, you can miss out on opportunities.”

5. PRICING IN THE MIDDLE

Agents generally recommend two options when setting your home’s sale price: the first, pricing at market value, and looking for the right one or two potential buyers. The second is setting a price well below market value to spark multiple offers, and setting a bidding date where buyers duke it out for a home that can sell for as much as $500,000 over asking.

“The worst mistake a seller can make is called pricing in the middle, where they set a bidding date but don’t price low enough to entice a lot of showings,” Little says. “The price you’ve set isn’t one you’d accept, because it’s below market value, but it’s not attractive enough for the offer activity we need to get top dollar.”