Real Estate Talk:
There should be a TV show called Real Estate Adventures
By Joseph Marovitch
In the field of real estate, as a broker, one amasses many crazy stories. Most stories stem from a tug of war between those who want to sell really high and those who want to buy really low.
The average buyer and seller have a reason to move such as job relocation, an expanding family, or downsizing for various reasons. The average seller agrees to price their property according to the condition of the property and what the market will bear, based on comparable property. The average seller will sell within six months.
Sellers who do not have to sell do not always listen to those who work in the field everyday. Many sellers become real estate gurus from the University of Google. One will hear phrases such as:
“The price is not too high. Just let them make an offer.”
“I’m in no rush to sell, leave the price as is.”
“They better be in the ballpark or else.”
Most stories stem from a tug of war between those who want to sell really high and those who want to buy really low.
Real estate is not rocket science. If a property is on the market for six months or more and receives many hits on the Centris system but few visits and no offers, then the winds of real estate, meaning the market, aka the public, are speaking to the seller like a prophet on the mountain, saying in a megaphone whisper, “Your price is too high.”
There are sellers who are selling a property in a very desirable location. The location is so desirable that even if the property is priced very high, the buyer does not care and will still make an offer.
If one or two offers come in very low, this may be a buyer trying to take advantage. If the seller is receiving several offers in the same price range but not near what they are asking, the real estate prophet is telling them something as well, “You are receiving the price that market will bear for this property in this location at this price.”
Then there are sellers who don’t really want to sell. They place property on the market, get what they are asking, then decide they can probably get more so they find a loophole or just refuse to sell with the assumption they will not have legal issues after.
‘The real successful real estate investors do not entertain drama. They purchase at market or the best price possible and rarely sell unless they must.’
There should be a TV show called Real Estate Adventures because the drama is immense.
The real successful real estate investors do not entertain drama. They purchase at market or the best price possible and rarely sell unless they must.
If you are using a good broker, listen to what they tell you. If you agree with what they say, you will sell quickly for the best price possible. If you hear what the broker says but are not comfortable with your evaluation, then wait for the market to catch up to the price you want to sell. While an overpriced property does not help the seller, it does provide advantages to the broker.
Buyers who attend the University of Google also create great stories.
The broker tells the buyer it is a seller’s market. Inventory is low and there are more buyers than sellers. The Google graduate says, very smugly, “I have been watching the market. I know the asking price is $500,000. Offer them $425,000.”
The buyer just convinced the seller that the offer they received at $479,000 from another buyer is a great deal now and sells to the other buyer. The Google graduate cannot believe they lost the property.
‘If you are using a good broker, listen to what they tell you. If you agree with what they say, you will sell quickly at the best price possible.’
The broker, being in the situation, may find it frustrating since it is like viewing a car accident in slow motion. The broker knows what is going to happen but has his or her hands tied. What a TV show it would make, funny, dramatic with a big spoon full of suspense! Think of closing your eyes with a cringe, just before the car hits the tree.
There are many successful real estate stories, but they are not as much fun to tell.
That being said, have a wonderful holiday and I wish you health, happiness and success in the New Year, in that order, health comes first.
Should you have questions or comments, please refer to the comments section at the bottom of the page. As well, to view past articles, go to the search link and type in Joseph Marovitch.
State of the market
2019 has been a crazy year with more drama than we all might want. The real estate market is affected by economics and politics. This past year both have driven the market higher in Quebec.
The market is expected to slow down across Canada but not in Quebec and not in Montreal. Montreal is short on space and high on demand from foreign and domestic buyers. There is probably not a better place in the world to invest. Quebec politics has played a role in the positive progression of real estate in Quebec. President Trump has played a role in our positive real estate situation.
Even weather has a part in our real estate market. It is cold in Quebec therefore we build very sound structures. Revolutionaries don’t attack Quebec, rather they come here for vacation. No one fights for land that goes down to minus 40.
Read also: Other articles by Joseph Marovitch
Joseph Marovitch has worked in the service industry for over 30 years. His first career was working with families from Westmount and surrounding areas, hosting children between the ages of 6 to 16 as the owner and director of Camp Maromac, a sports and arts sleep away summer camp established in 1968. Using the same strengths caring for the families, such as reliability, integrity, honesty and a deep sense of protecting the interests of those he is responsible to, Joseph applies this to his present real estate broker career. Should you have questions please feel free to contact Joseph Marovitch at 514 825-8771, or email@example.com