Selling Your Home in a Balanced Real Estate Market

After a period of frenzied buying in 2020 and 2021, Canada's housing sector cooled significantly in 2022 due to the Bank of Canada raising interest rates, which resulted in market uncertainty and many prospective buyers waiting on the sidelines. This has led to a shift away from the red-hot seller's market, with 60% of regions in the country expected to transition to a balanced or buyer's market in 2023.

In a balanced market, the supply of residential properties matches the level of demand from buyers, as opposed to a buyers' market where there are more units than prospective homeowners, or a sellers' market where the supply is far outpaced by demand. While homeowners were able to easily sell their homes above asking price in the past few years, the current state of the Canadian real estate market makes it more challenging to sell homes in a balanced market.

A balanced real estate market is one in which the number of homes for sale is equal to the number of potential buyers. This contrasts with a buyers' market where there are more homes for sale than there are buyers, and a sellers' market where there are more buyers than there are homes for sale.

As mentioned, Canadian homeowners have been able to sell their homes above the asking price easily. However, with the current changes in the real estate market, selling a home has become more challenging. Here are five tips we put together to help you sell your home in a balanced market:

1. Set a Competitive Price 
   
   With the current market conditions, it is crucial to establish a price that lines up with the current conditions. It is important to price your home based on what the neighborhood is doing. At Michael Simone Real Estate, we provide a full analysis of your home in comparison to current market conditions. This way you are informed, educated and ready to create a ‘plan of action’. 
    
2. Home Inspector
   
   Before listing your home, it is a good idea to hire a home inspector to identify any issues that need to be addressed, such as repairs or replacements. Consider making this inspection report available to prospective buyers. Having a recent home inspection report can feed buyer confidence when deciding to place an Offer on your property. 
    
3. De-clutter Your Personal Effects
   
   To help potential buyers envision themselves in your home, it is important to remove at least 50% of your belongings, decorations, and furniture from each room. The more space you can clear, the better an idea visitors will have of how they will fit in the new home. Another great idea is to remove family photos and religious belongings. This psychologically helps the prospective buyer envision themselves living in your home. 
    
4. Add Incentives
   
   Small incentives, such as new appliances, a new television, installing an EV charger or even homeowners' association dues, can help attract buyers and ensure the home is sold faster. This may be necessary in areas with low sales volumes or in situations where you need a quicker than normal sale. 
    
5. Wait and See
   
   In a balanced market, the selling price is not guaranteed to be above the asking price. This uncertainty can make it difficult to plan for a new home purchase. Working with an Michael Simone can help guide you through the process and provide valuable insights into the market conditions. If you’re considering selling, and need some clarity on your specific situation, we’d be happy to connect at a mutually convenient time. 

In conclusion, selling a home in a balanced market requires careful planning, a competitive price, and attention to detail. By following these tips and working with a real estate agent, you can increase your chances of selling your home quickly and efficiently.

Michael Simone