Ottawa Real Estate
Price Right and Sell Fast
You’ve made the decision to sell your Ottawa
home. There are lots of reasons to sell; you may have decided
to move to a better neighborhood or to buy a larger home with
more amenities. You may be downsizing your empty nest or have
to sell because of personal circumstances. Regardless of your
reason for selling, setting the right price is crucial in
ensuring that you get the return on your original investment
in your home.
Who sets the price?
The price at which you list your home is determined by several
factors including market trends, the condition of your home
and it’s assessed value and a comparison with similar
properties in your area. Your particular circumstances may
also determine how you set your price.
Ask your Ottawa
real estate agent! A real estate professional has the
experience, skills and tools to assist you in setting the
price for your home. Take some time to choose the right agent;
look for a combination of expertise and commitment along with
a personality that is compatible with yours.
Check with friends, acquaintances and your local real estate
board for agents. Before settling on an agent find out how
many listings they have sold in the last year. Your best ally
is an agent with a good track record, whose properties sell
quickly and who can move even “hard to sell” properties.
A good agent is not content to deal in statistics and reports
but wants to works with you to showcase the uniqueness of
your home and your situation.
A good real estate agent is not satisfied with simply knowing
how much similar properties have sold for; they will find
out why they sold for that price and then work with you to
get the best value for your home.
Price is key to a timely sale.
Statistics show that the best opportunity for selling a home
for the asking price occurs during the first four weeks that
the home is on the market. If your home is priced right it
should attract a number of buyers willing to pay your asking
price. The “right price” is typically within 5%
of “market value” and usually results in a sale
at a fair price within a reasonable amount of time. A good
rule of thumb is to price about 3% above market value. Setting
the right price requires up-to-the-minute research into current
real estate market conditions and financing trends. Other
important factors include comparing your home with similar
neighborhood homes on the market now or recently sold and
identifying the unique features that make your home stand
out from the crowd.
There are dangers in overpricing or under pricing your home.
If you set the price too high you will attract fewer potential
buyers and miss out on serious offers. If your house remains
on the market too long you take the risk that buyers who are
familiar with current listings will assume that there is something
wrong with the property. This makes it more difficult to sell.
If you set the price too low you may attract many buyers
and get lots of offers but you’ll also lose thousands
of dollars when you sell.
What are the risks of “Over Pricing”?
Pricing your home more than 5% over market value may have
- Buyers may pass up your home in favor of better values
elsewhere – they won’teven come for a look.
- People who can’t meet your price will not consider
even making an offer.
- You may waste precious time when a buyer, making an offer
at your over-market price, fails to get financing. Lenders
tend to reject loans if the offer is more that the appraised
value. While you are waiting for yet another offer to fail
due to financing, potential buyers are looking at other
properties, not yours.
- If your home is listed too long the marketplace assumes
that there is something wrong with it.
- You may end up having to drop your price to BELOW that
of comparable properties in order to sell.
When does it make sense to “Under Price”.
Although you may lose money if you price your home below market
value it may be necessary if you are in a situation where
you have to sell in a hurry, or are unwilling or unable to
make improvements which would warrant a higher price. The
lower price attracts more prospects and more offers and may
result in a faster than average sale.
Preparation is key.
When you engage a real estate professional to sell your home
they should immediately do a market analysis in order to determine
the appropriate asking price. At this point you would be wise
to have a professional inspection of your home to identify
any repairs and upgrades that may be required or that would
increase the value of your home. Besides providing useful
information for you and the realtor an inspection will eliminate
unpleasant surprises when a buyer orders a home inspection
of their own as a condition of the sale.
The purpose of a market analysis is to assess your home
itself and the market in which you are selling. When suggesting
a selling price the professionals will consider:
- the size, condition and location of your Ottawa home
- the lot size, number of rooms and their function, and
special features like garages,
- decks, sunrooms, hot-tubs, etc.
- the condition of the exterior and the interior, the foundation
- the list price or sale price of other comparable properties.
You and/or your realtor should make a point of actually
visiting comparable homes for sale to note their condition
and particular features in order to better understand the
- the assessed value of your home, its previous sale prices,
costs of maintenance, utilities and taxes
- improvements you have made
- the state of the market – in a seller’s market
you can price on the high side; in a buyer's market you
may have to set your price lower
After completing a market analysis your realtor will be able
to advise you on minor or major repairs and necessary upgrades
that you should undertake in order to put your best “foot”
forward. Check out our “Home Makeovers” Special
Report. Once you have seen the market analysis you can decide
whether to spend the time and money to upgrade or set your
Whether or not you undertake major work you will increase
the possibilities of selling at your asking price if you make
sure your home is orderly, both outside and inside, spotless,
uncluttered and welcoming to anyone who comes to look at it.
“Show me the money!!!!” – What’s
your bottom line?
It’s important that you know exactly what you will walk
away with if you sell your home for your asking price. Before
finalizing your selling price ask your realtor to calculate
what you can expect to realize from the sale after all the
costs are deducted. By taking the price of the average comparable
home and subtracting what is owed on your mortgage plus the
closing costs and the realtor’s fee, as well as any
planned repairs, home warranties and other costs you will
arrive at the amount that you can expect to clear from the
If this amount doesn’t make you smile you should go
back to square one with your realtor and decide what you need
to do to increase your selling price.
Setting the right price is the key to selling your Ottawa
house. To get the best price you need the help of an experienced
realtor who will conduct a market analysis, advise you on
what can be done to highlight or increase the value of your
home, and set an appropriate price.
Even if your home is in poor condition or in a bad location
it will still sell if it is a good value. Meaning if you set
the right price. You can obviously get a higher price if your
home is in good condition, in a nice neighborhood and if you
have the time and money to spend on specific improvements.
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