The Edmonton Real Estate Blog

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Wednesday, March 01, 2006

Understand Your Market Before You Sell

In today’s very active and competitive real estate market in Edmonton, it’s surprising how many home sellers get caught up in the excitement of rapidly-rising prices and just arbitrarily decide what their home is worth. While you may have quickly browsed a web site or two, or even toured some Open Houses in your town, such casual investigations can’t properly evaluate what price the changing market will bear and what your house can command against its competition.

Some home sellers even make the potentially serious mistake of buying a new home before they have a clear understanding of what their current home may sell for. They enter into a commitment to buy their next home at a certain price and then ‘work backwards’ trying to sell their home for the amount they’ll need to bridge the distance between the two properties. Sometimes this flawed logic can end in disaster. The home seller may be left with a home that sits on the market for months longer than they anticipated. They may even end up reducing the list price, if their target price doesn’t fit the reality of current market conditions.

If you’re thinking of selling, an important first step is getting a comparative market analysis to give you a reasonable expectation of your home’s value. You need hard information and proven facts to really understand the market, so ask for a market evaluation of your property before you set the list price. Don’t choose a number off the top of your head, just because it suits your needs. We can prepare a comprehensive report for you that will provide you with statistics on recent sales and current listings of comparable properties. Recent sales show you what prices the market has already accepted, so that’s a good benchmark for a realistic starting point. Current listings show you the competition that you are up against now, so you can be sure your home will be competitively priced. Just as important, we can also provide you with detailed information on comparable listings that have expired. By reviewing similar houses in your area that did not sell, you know what price range the market will not bear.

In Edmonton's active market, home sellers are frequently approached by salespeople from different companies. While it may be a temptation to choose a salesperson simply because they propose the highest list price, this is usually not the best tactic. If your listing is overpriced, it will discourage potential buyers, extend the time period you have to carry expenses and waste your time. A better strategy is to choose a real estate professional who has taken the time to review your market and your competition and is prepared to support their recommendations with solid market research. Why not contact us and take advantage of our advice? There’s no cost or obligation to you and it might just turn out to be the best call you’ll ever make.

Get a free online comparative market evaluation.

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