Real Estate Talk:
Back to sales in September
Why the September real estate market is so exciting for buyers and sellers
By Joseph Marovitch
Previously published August 1, 2018
There are several times in the year when the real estate market perks up and other times when the market is in the doldrums (Doldrums: When there is no wind and the sails of a boat are not filling, causing the boat to go nowhere).
Selling real estate requires an audience and there are times of the year when the audience is limited, such as Christmas and New Year’s or more accurately December to January. This is a time when most people are going on holiday, spending time with the family and reducing their stress.
Another time the real estate audience is reduced is summer, specifically mid-July to the end of August. Once again people are on holiday, having fun in the sun and finding ways to enjoy a stress-free time.
… though there may be a limited audience, summer is an excellent time to show off your property.
However, discussing the possibility to purchase a new home or sell an old one during a stress-free time, such as summer holidays, can be downright exciting. You’re sitting around the lake or in your back yard enjoying a cold, refreshing drink. Conversation consists of purchasing that new home for the family or downsizing and imagining ways to spend the cash now that the kids have moved out. In an effort to get the ball rolling, you invite all your friends to a backyard cocktail or pool party because, though there may be a limited audience, summer is an excellent time to show off your property. People see, and people talk.
The fun is about to begin. September rolls around and suddenly there are thousands of people back in the city ready to get to business. All the talk of selling and buying becomes action. Granted September is a busy time for everyone. You return from holidays to find a pile of work on your desk and a ton of messages to return. This is when a professional real estate broker comes in handy. In September, properties pop up everywhere for sale. Real estate inventory increases, allowing more options to choose from and competitive prices to negotiate with.
‘September rolls around and suddenly there are thousands of people back in the city ready to get to business. All the talk of selling and buying becomes action.’
Buyers who search for homes in September usually do not want to move when snow arrives, so negotiations tend to move faster, signing and possession dates happen sooner. Sellers in September want to take advantage of the fall season colours and not have to market their home in December when holidays begin again, therefore pricing tends to be reasonable.
I find it is best to place a property on the market near the end of August. This way the seller gets a headstart as do the eager buyers who arrived home from holidays a little earlier. As well, the first wave of buyers and brokers usually pass the word around that a new property has come to market. By marketing in the end of August, come September, buyers come a little sooner and visits escalate as September passes.
Next article: The 2nd home market and opportunities – Country homes
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Have a great week!
State of the market
The Montreal real estate market remains high with a 5.8% increase in residential prices, up from last year currently. Quebec is showing a stronger market performance than the rest of Canada, however, there are signs the market will strengthen across the country. This is good news for sellers, however, even in a good market, there are concepts to follow when selling property such as proper pricing and preparation of the property.
A good market means the property will be priced higher because prices across the board have increased. Some sellers believe a good real estate market means you can over-price the property. This is not the case in any market. Each property has a price range based on the market but also on the condition of the property. If the property requires extensive renovation, then the cost of the renovation must be considered and subtracted from the market price of the home if it were in excellent condition. The renovation the property requires should be indicated in the seller’s declaration so that the buyer, after providing their offer, cannot claim they did not know what was required and attempt to reduce the offer.
‘Some sellers believe a good real estate market means you can over-price the property. This is not the case in any market.’
Further, if the property requires extensive renovation, the seller cannot renovate partially in the hope of getting a higher price than the property will provide. If the seller intends to renovate, all the renovations should be performed. This will allow the seller to get the maximum amount of money from the property. If partial renovation is performed but there is still much to be done, then adjust the price to properly reflect the state of the house. Extensive renovation should take place upon purchasing a home, not when selling. When selling, only repair what can be immediately viewed by potential buyers, so they will remain interested.
If the cost to repair a property is significant, it is better to reduce the price by the cost of repair and let the buyer do their own work. Individual sellers are not developers with a developer’s line of credit, timeline and marketing division.
‘There is a balanced price for every property that creates many calls, visits and multiple offers. The price is usually the mid level fair market value.’
Finally, if the property is well marketed, has many visits and clicks on the Centris system, but has not sold after a period, this indicates the market, meaning buyers, have spoken and they are saying the price is too high.
There is a balanced price for every property that creates many calls, visits and multiple offers. The price is usually the mid level fair market value. It is not the first inclination of most sellers to price their property this way but in the end many sellers who do end up getting more money than expected and sometime more than the asking price in a multiple offer situation.
Image: Andrew Burlone
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 firstname.lastname@example.org