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Real Estate Talk:
Time Is Precious

Time is of value – even in real estate

By Joseph Marovitch

In the process of selling a property, sellers often wonder why potential buyers do not buy their house after several visits. From the potential buyer or the broker, the seller is told what are the issues stopping the buyer from buying the house. Over many visits the seller starts to hear the same objections such as this room is too small, that garage is too narrow, the backyard is not big enough for a pool or planes are above or traffic is too near.

It is the objective of the broker to overcome these objections with verbal solutions and it is the desire of the seller to do the same. Many sellers do have solutions for every objection and at times cannot understand why the buyer will not accept the solution and just make an offer.

The reason buyers do not always accept the solutions is that time is precious. Each moment we use, or not, is gone forever. Moments of time are not refundable, exchangeable, tradable or negotiable in any way. Therefore the time we have to use is precious. We want to enjoy and revel in every moment we are afforded. In regard to residential real estate, time is exciting and full of expectation and satisfaction. Purchasing a new home is exciting and going out to choose bathrooms and kitchens is supposed to be fun. In the process of buying a house, the buyers want to enjoy the experience of creating the new home to their taste by choosing the colors, perhaps creating a new kitchen or bathroom and maybe a little landscaping. Sometimes buyers take pleasure in gutting the entire property and starting from scratch.

Know that if your property requires more work than other homes that are for sale in the same area, it will take time.

However, the issue is, if a buyer must take a property and bring it up to speed before implementing their own ideas, this is not necessarily enjoyable and as mentioned previously, time is both precious and has intrinsic value. Many people will not trade their time for money. Money can be regained, time cannot.

When those buyers who are prepared to trade time for money, do so, they charge a premium. If it costs $1 to repair a foundation or replace windows or flooring, the buyer will charge $2 or more to compensate for precious time. If the property being sold requires more than just a kitchen or bathroom upgrade, and the seller is not prepared to do the upgrade, they will pay a retail premium price reduction in the sale of their home to allow the buyer to do the work.

Finding a buyer prepared to do more work to a property than expected is difficult unless the seller is giving it away. Know that if your property requires more work than other homes that are for sale in the same area, it will take time.

State Of The Market

According to the Greater Montreal Real Estate board (GMREB), Montreal real estate sales increased 13% in the month of August 2016 compared to last year. The GMREB states that this is the 17th sales increase in the past 18 months. This is very good news for August considering it is usually very quiet as everyone is on vacation. Historically, in September, the market is kick started as everyone returns from vacation. New property is listed and buyers abound. With number such as August, it should be an exciting September market for sales.

Previous issues

Perils of Overpricing
Promise to Purchase First!
Qualifying a Buyer

Image: dvs via StockPholio.net

 


Joseph Marovitch - WestmountMag.ca

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 josephmarovitch@gmail.com

 

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