Strategies on how to buy and sell fast depend on market conditions. In a recent REAL Collective Podcast, Sean and Brendan discuss how to buy and sell quickly in the current balanced market we find ourselves in. To listen to the full episode, visit us on YouTube or scroll down!
Buying Quickly – Be Prepared
There is a lot of set up that is required before you can buy quickly. Often, buyers may shop for a home before they have selected a REALTOR® or received a mortgage pre-approval from their bank. It’s not uncommon to get a call from a potential client saying they found a house online, and can we help them buy it right away.
The answer is yes, BUT there’s a lot of preparation we should have done ahead of time before getting to that point. Buying a home is not like buying a pair of jeans. Having had a conversation with a REALTOR® before you find the house of your dreams will ultimately lead to being in a much better position to snap that home up quickly with less obstacles to overcome in the process.
The Process:
- REALTOR®: Meet with an agent or more than one. Find someone you can click with and would enjoy working with. That agent will give you a roadmap on the process.
- Financing: Getting linked up with the right mortgage broker is one of the largest parts of preparing. As pre-approval has two parts to it: approval of the individual, and approval of the property. If you offer on a home before getting a pre-approval and are trying to do both in a conditional period, the timeline can be very tight. You are in a stronger position if you have already gotten yourself approved and handed in key documentation to a mortgage broker.
- Education: Your agent will educate you on what the process will be, including what you are going to be facing as you go through a conditional period while offering on a home. You’re going to need to find some key service providers that you are happy with such as, a home inspector and a lawyer. Maybe you’ll rely on your agent for some recommendations (we have a list of partners on our website if you are looking for some fantastic service providers for Ottawa and surrounding areas: Partners – Real Collective).
- Roadblocks: You may have some mental roadblocks that you may need to overcome during this preparation phase. Being open about finances can be difficult for many. Going through this ahead of time keeps the burden lower when it comes time to purchase a home.
Why is it beneficial to buy quickly?
Typically, when you buy quickly you are avoiding competition and paying less than you may in a competitive scenario. If it’s the right price and the perfect home for you, there could be others thinking the same thing. Timing can be crucial – another great time to hop on an opportunity is often right after a price drop.
The benefit of working with the Collective is our client service department. This means that we can start writing an offer for you while you are still standing in the driveway with your agent. This allows you to act extremely fast and gives you a significant advantage over other buyers.
Selling Quickly – Be Prepared
To sell quickly, you must ensure that the product you put on the market is prepared properly and positioned well.
First, is staging. We offer a staging consultation which allows you to go through that process of depersonalization and decluttering (if you’d like to learn more on what’s involved in staging: How To Effectively Prepare Your Home for Sale & End Up with More Money in Your Pocket – Real Collective).
After you’ve gone the staging phase, we move along onto presentation. Professional photos, videos, drone videos and property tours are of the upmost importance (no phone photos please!) Ensure your home is as pristine as possible for photography sessions and showings.
Next is positioning. Right now, the average day on market is hovering around 3 months. If you would like to sell your home faster, it must be positioned properly, which is completely psychological.
To illustrate:
If you are going to buy yourself a laptop – you head to Staples and find the Dell laptop that is just right for you. You are happy with it but want to check out a few stores. You head across the street to Walmart and find the same laptop for sale this weekend. It’s the same price but the laptop is upgraded and has an extended warranty. Which one will you choose?
It always comes down to price in the end.
If your home has the extra bells and whistles, you must be priced the same as the home that is comparable but does not have those upgrades (in a balanced market). If you don’t have extras in your home, then you must be priced lower than the comparable competition.
We can calculate the numbers to find out what fair market value is and see what the competition is. If you are going to beat out these other homes, you’ve got to position yourself properly.
The ironic part is, if you start by pricing your home at fair market value you end up selling for more in a shorter period than if you price the home higher. A home will sit on the market longer to the client’s detriment if it’s priced too high and we know from experience that if you start too high you will end up selling your home for less than if it was priced properly at the beginning.
As interest rates continue to rise, it puts negative pressure on house prices. The key is pricing ahead of the market, which can be tough.
For more valuable real estate related tips, you can check out the REAL Collective Podcast on iTunes, Spotify or YouTube.
