In my last article on what we are responsible for as Real Estate Professionals, I left you guys off with “what affects your homes price and what doesn’t affect your homes price.”
In my time as a Real Estate Professional, I have learned that a great number of variables affect a homes price when it goes up For Sale.
I think one of the most important parts in a Real Estate Professionals (Realtor’s) job is to assess property and what it may be valued at in the current market, which in turn will yield their client the most money for their investment when selling or save their client the most money for their investment when buying. It’s a highly complex time when people are dealing with the pricing part of the home selling and buying process… Mr. Ego gets very active! Because our Ego won’t step aside and let us do what we know is best for us.
The first part is:
The Real Estate Professional doesn’t have anything to do with what your house is worth on the market EVER!!! The Real Estate Professional is available to study and research the market conditions and relay information which already exists (We’re formally trained to do this).
With this information and his/her experience, along with the owner/buyers feedback a PRICE is conceived. When I work with my sellers I don’t tell my sellers to list their house at any price, in fact they tell me what they would like to do. Once they tell me what they would like to do, it is my responsibility to listen to them and provide them with my opinions and some other related facts (If I don’t do this, I am not a responsible Real Estate Professional), in fact if I don’t provide for my client I am actually not practicing within my professional guidelines according to The Real Estate Council of Ontario (RECO).
The other part that doesn’t have anything to do with the price that a house sells for is how much the seller loves their “Pink Polka Dot” walls in their basement… What is absolutely beautiful for one person is not for another person! A lot of people view a pool as a positive trait in a home, while others with small children view a pool as a “safety hazard”. Start planning how much money it will cost them to fill it in and build a Gazebo in their backyard. A finished basement can be a positive trait for many individuals and families, while others want an unfinished basement, so they can build it the exact way they want! The house will not sell for more money because one is more attached to it, or less attached to it (The market doesn’t care about people’s feelings, people do!).
One thing that does affect what your house will sell for is, how much a buyer is willing to pay for it. We know this is true because the buyers are the ones with the money that the sellers want, most times the sellers don’t want to sell for less than what a buyer is willing to pay for it, but we know in the Real Estate industry that a buyer’s perception of a house and it’s value to them has a direct impact on what that house’s market value really is in the current market!
Another aspect that affects the price of a house is how many sales have taken place in the neighbourhood, how long the houses were on the market, and what the houses in the area sold for. Real Estate Professionals are highly interested in attaining the most money for their sellers because at the end of the day when the seller is left happy, the Real Estate Professional looks and feels GREAT!!! The Real Estate Professional is responsible for conducting this extensive research. This research puts their client in the drivers seat when the seller is aware of what they are competing against!
Another thing is that a buyer most often feels like they have paid too much money for the new house, while the seller most often feels like they have not gotten as much money as they could have gotten. When this happens it’s called “Market Value”
Manjit Virk
Sales Representive with Signature Service GMAC Real Estate
www.manjittorontohomes.com
