It’s a phrase we hear all too often from real estate developers and even those selling their homes: “We are not in a hurry!”. Most sellers truly believe that they have something rare on the market, that their property is exceptional and they should list it at any price they feel is right. Some are even expecting to have line-ups at their door! Considering the current real estate market we are in, it is crucial to be realistic and justified in your pricing. There will always be an exception to the rule somewhere, it’s the law of probability, however a sellers objective should be finding the balance between opportunity, price and time frame. Sadly, we see too many real estate agencies and brokers who will agree to their client’s unrealistic expectations, simply to get the contract. More often than not, this results in mandates expiring with no sales in sight. The normal reaction of the seller is to blame the broker or agency, as opposed to revising their price. The next step usually involves finding another broker who will promise them the moon or accepting reality, and seeking the advice from an honest and experienced broker. The honest broker will advise their client to lower their asking price, which should have been the first broker’s response. This would have avoided burning a listing and wasting both parties’ time.
Another problem we often encounter happens when an offer is presented too quickly. A common reaction is to think that they have not listed at the right price and should be asking for more – nobody wants to leave money on the table. Consequently, they will refuse the offer or to even negotiate. This is a huge mistake, as almost 80% of these cases end up accepting a similar or lower offer later on, in order to put an end to the delays, costs and frustrations. So a lesson for the “ We are not in a hurry ” in a few months will be, “ The first offer is often the best” and “ A bird in the hand is worth two in the bush”!
Understanding how to correctly price a property and then being able to explain your reasoning is not only a skill, it’s an art form that very few have mastered in our industry.
At McGill Real Estate, our brokers are carefully selected – come experience the difference!