• Alvi Campos

Common Mistakes: Home Sellers

With winter’s cold looming, many home sellers and buyers are looking to delay any buying and selling decisions until the spring. This rationale makes sense as the harsh weather of Saskatchewan's winters’ make moving a much more tedious and difficult task as opposed to moving during the spring, summer, and/or autumn. If you are putting your decision to sell on hold and debating selling your home this coming spring, it makes sense to meet with a real estate expert sooner rather than later. (Speaking of moving, I recently moved, and I used Less Stress Moving Solutions, and they were affordable, professional, and very diligent in their work. I have recommended them to a couple of my clients and family, and I highly recommend them to anyone reading this post.)

Selling your home is not a decision that is made overnight, nor is it a decision that should be made on a whim. Many sellers believe that they need to undertake extensive renovations before selling their home; sometimes these renovations can be viewed as an investment in their property, other times these are sunk costs that a seller may never recover. So how do you avoid losing thousands of dollars that could be spent elsewhere? My recommendation is to meet with a real estate expert (or several experts as it never hurts to make sure that the agent you are working with provides you with reliable and relevant data) before selling to get a market evaluation of your home.

Many people aren’t entirely sure what a market evaluation is and what the cost associated with evaluations is. Below I will answer the commonly asked questions regarding a market evaluation:

1. The price for market evaluations will vary depending on the company and/or agent. Some companies charge “evaluation/appraisal fees” that could vary from $500 upwards of $1,500; I offer my clients a free market evaluation with no obligations or expectations. This is the case for both residential and commercial real estate.

2. Market evaluations will compare your property to current listings on the market, as well as recent sales within the area. Depending on the area of where your property is located and the number of similar sales within the area, sales comparables may be within the last 90 days, to as far back as the previous 1-2 years. Sales comparables set a guideline of what the potential price per square foot (PSF) of your property may be. Knowing the potential sale price range of your home will then help determine whether an extensive renovation project will yield the desired ROI (Return on Investment) or could potentially be sunk costs that may not be recovered.

3. Market evaluations are time-sensitive. If a real estate expert provides you with a market evaluation, it is always important to be given a potential sales price range. The potential sale price determined by the evaluation is time-sensitive, as new listings and new sales comparables will impact the value of your property. However, for the most part, most values determined via a market evaluation should remain relatively stable throughout the winter months when real estate activity decelerates. Yet it is very important that your agent re-visit the potential listing value of the property before a listing agreement is signed and your property goes to market.

4. As a seller and agent, approach the market evaluation as an interview. As an agent, this is your opportunity to showcase your work ethic, knowledge, and quality of service to potential sellers. It is also an opportunity to get to know sellers and see if they fit the type of clients that you want to serve. As a seller, this is your chance to ask all the hard questions and see if the agent can back up the promise they are making with reliable and relevant market information to help you throughout your real estate journey. Sellers who struggle to sell their properties are sellers who overvalue the homes when listing their property. Sometimes this valuation is dedicated by a seller’s demand to list at a certain price, other times this over-pricing is due to an agent’s lack of due diligence to ensure they provide an accurate and reliable market evaluation. As a seller, do not rush the selling process. Give yourself enough time to speak to several agents to ensure that you are working with the agent that best fits your needs. If you are contemplating selling your home, please don’t hesitate to reach out for a free and no-obligation market evaluation. If you enjoyed reading this post, make sure to like, share, and comment and keep an out for my next post that will speak about first-time home buyers and how to make sure you are in the best position to make an offer on the home of your dreams. Alvi Campos, MBA Real Estate Expert C: (306) 716-2774 E: alvi.campos@century21.ca W: alvicamposrealestate.com

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