How to sell in a buyer’s market

Brampton (actually pretty much all of Canada) has enjoyed a seller’s market for several years now. The tables are however turning. The U.S economic crisis has finally started effecting Canada and most of the world. In November 2007 543 houses were sold in Brampton and so far this November only 283 houses have been sold in Brampton.

Not everyone is complaining though. Buyers couldn’t be happier. Those who have job security are all smiles because finally the prices have started to stabilize, and there are more listings on the market to choose from. For a few years if there was a property that a buyer wanted to buy chances were 10 other people wanted to buy it also. Bidding wars became very common and the prices kept skyrocketing.

So how do you sell in a buyer’s market? First off: if you don’t have to sell then don’t. Just wait it out till it becomes a seller’s market again. If you must sell because of your situation then be sure to price it right. You just cannot these days price it high to test the market or to leave lots of room for negotiation. If the house is worth $300,000 then be sure to price between $294,000 to $301,000.  Ask your agent to give you weekly updates on market conditions. If similar houses start selling for $295,000 then you need to know that and unfortunately keep adjusting your price.

Second thing you can do to increase your chances of getting your house sold in Brampton (or Georgetown / Halton Hills) is to offer the buyer agent a bonus.  There are so many listings competing for that one buyer now. The buyer relies on his agent to show him the appropriate houses. If you offer that agent a bonus then you can be sure your house will be on his list to show. Some listings I’ve seen are also offering buyers bonuses. A multimillion dollar listing was offering a brand new car to attract buyers!

Renovations help. However, keep your budget in mind. No point in spending $10,000 on renovations and gaining only $5,000 in the selling price. Another thing  you can do is to hire an agent who has the experience and skills needed to sell in this kind of market. He will be able to give you more specific pointers.