U.S. Realtor Has Harsh Words for Some Home Sellers

Tough economics times can bring out either the best or the worst in us. In a recent article, Texas realtor Paul Pastore reminds sellers to be realistic when it comes to pricing and presenting their home for sale. While his advice is timely, his language is at times a bit harsh. (Be warned!)

Here, in his own words, are six key points from his article:

Pet Addiction: The feeling that everybody loves your pet as much as you do. Symptoms include scripts such as, “His bark is worse than his bite”. Or, “The cat must like you to nestle in your lap”. Or, “Don’t put your finger in the cage”.

Photorea: A need to keep dozens of old photos hung to distract a buyer’s attention from the real property. A variation of this virus includes ‘childhood incrementalism’. Monthly photos of the first born that are in chronological order as a buyer ascends the stairs.

‘As-Is’ ism: If a stubborn seller says, “The buyer can take it or leave it as-is” ; they usually won’t. Buyers ‘horribilize’ defects. A broken doorbell symbolizes electrical problems. A cracked window means a faulty foundation. Water stains come before roofing problems and future floods.

Colour Blindness: Webster’s dictionary defines a real estate tour as, “Agents caravanning from house to house making fun of decorating disasters”. Most color schemes are ephemeral. Navajo white, white washed cabinets, and flocked wallpaper are out. Less is usually more.

Audio Selectivism: The ability of a seller to hear only what they want. “The buyer must be confused”. “The appraiser was in a bad mood”. “My neighbour said I wasn’t asking enough”. There is a difference between hearing and listening.

Priceaphobia: The fear that a property will sell for less than a premium price. Price and greed combine to form a drug like addiction to unrealistic expectations. Researchers are split in attributing this to heredity or stupidity.

As many of you know, I’ve written extensively about home-selling in the past, so some of Pastore’s points may seem redundant. The reason I highlight them here again is to hammer home how important they are.

Not surprisingly, home buyers can accept the realities of the housing market much easier than most home sellers. Evidence of this is how Toronto-area buyers have, for the last ten years, been paying the full asking price and above because of the reality of the market place.

It’s now time for you as a home seller to understand that the tables have been turned. It is a buyers market, which means you may need to make a mental adjustment if you are to entice buyers to your home.

Realistic pricing and presentation can mean the difference between selling or living through a mind-numbing six month ordeal. It’s your choice.

How to Avoid a Law Suit After Selling Your House

Lawyer Bob Aaron wrote an interesting article recently about a home seller’s obligations to disclose house defects to buyers. According to Aaron, the main criterion the courts apply to decide if a seller is responsible for repairs/defects is whether the defects are patent (obvious) or latent (hidden).

Case in point: The buyers of a home in Leduc County, Alberta, inspected the house three times before signing on the dotted line. The only problems they found were minor wiring issues. Soon after they moved in, however, they discovered an infestation of carpenter ants in a bedroom ceiling and mould in the basement.

Because of the ant infestation, the entire roof had to be removed and replaced with a metal one.

But when the buyers took the matter to court, the judge ruled that they’d failed to take reasonable steps to determine the full extent of the defects before buying the home. The buyers would therefore have to bear the repair costs themselves.

Read the rest of this article »

November 2008 – Lawrence Park Market Report and Average Sale Price

Comparing home sales in Lawrence Park for the period January to October 2008 with the same period in 2007.
Last year there were 51 homes sold, versus 35 in 2008, a 35% drop, but the average sale price managed to climb 10% from $1,969,000 to $2,164,000.

The median sale price also climbed from $1,705,000 to $1,975,000, an increase of 16 percent.

The listing (asking) price as a percentage of the sale price saw a minor adjustment from 100 per cent to 99 per cent. However, it took 12 days less to sell a home in this neighbourhood.

Lawrence Park and Leaside continue to defy the trends from most other markets throughout Canada.

Lawrence Park – Average and Median Sale Price, Days on The Market

Please note that because of privacy laws in Ontario, we are not able to publish individual addresses or selling prices of sold homes. Such information can only be given to you individually.

To receive complete information and details on any home sold, send me an email, or call me Rosalin Smith-Carr, at my direct line (416) 482-8330 ext. 3519

Do you know the value of your home in today’s market? Click here to receive a complete Opinion of Value by email. No one will visit.

Tough Times Are No Time for Inexperienced Realtors

“There are far too many agents out there who don’t specialize, who do just two or three deals a year. Would you use a part-time lawyer or a part-time dentist? We need to raise the bar.” So says a high-profile executive of a prominent Toronto real estate firm, and I agree with him.

More than 1,000 real estate agents and brokers gathered Monday for a general meeting of the Toronto Real Estate Board (TREB).

They came to discuss the current market conditions and to brainstorm. The executive was one of several speakers, but his words hit home.

Last year in Canada, there were close to 100,000 realtors, up from 77,000 in 1987. This is simply way too many. And the majority of these newcomers are part-timers. Some time ago, TREB asked the province to restrict real estate licenses for part-timers. The move was struck down by those who believed the board’s request was unconstitutional and restricted labour rights.

Read the rest of this article »

November 2008 – Leaside Market Report and Average Sale Price

Comparing home sales in Leaside for the last six months of 2007 to the same period in 2008.
Last year there were 125 homes sold, versus 71 in 2008, a 43% drop, but the average sale price managed to climb by 9% from $821,000 to $898,000.

The median sale price went from $760,000 to $849,000 or an increase of 11 percent.

The listing (asking) price versus the sale price decreased from 104% to 99%, which is still a relatively modest amount compared to other Toronto neighbourhoods. On average it only took 2 days longer for homes to sell in this neighbourhood.

Leaside continues to defy the trends from most other markets throughout Canada.

October 2008 – All Leaside Home Sales

Please note that because of privacy laws in Ontario, we are not able to publish individual addresses or selling prices of sold homes. Such information can only be given to you individually.

To receive complete information and details on any home sold,  send me an email, or call me Rosalin Smith-Carr, at my direct line (416) 482-8330 ext. 3519

Do you know the value of your home in today’s market?

Click here to receive a complete Opinion of Value by email. No one will visit.