“A seller's market is a market condition characterized by a shortage of goods available for sale... A seller's market is a term commonly applied to the property market when low supply meets high demand.” - Investopedia
While many communities across Canada have experienced transitions from buyers’ markets to sellers’ markets and back again, Greater Moncton has stayed the course as a buyers’ market for decades. in the spring of 2019, for the first time in my 11 years as a Realtor®, the Greater Moncton Real Estate Board reported residential resale statistics that indicate that Moncton was officially a sellers’ market! Since then, in Q4 the GMA is reported to be a more balanced market.
Like anything new, this shift in our real estate market requires education and guidance both for homeowners, purchasers and even Realtors who are navigating their first sellers’ and balanced markets. So, I took this opportunity to do some planning and draw on the advice from my colleagues in other markets.
If you’re planning to list your home right now (and now would be a great time as per the title of this blog), there are three key considerations that I want you to keep front and centre.
1) Do not overprice your listing.
There is nothing you’ll be tempted to do more than list your house at a higher price than those who have recently sold in your area. After all, we’ve all seen HGTV where these types of risks almost always pay off. Unfortunately, this isn’t a TV show - we are dealing with your most valuable asset here!
Buyers are competing for the home of their dreams. In many cases, they may have missed out on a home or two that they really loved and this experience has them moving swiftly and aggressively. By pricing your home higher than the surrounding comparables, you risk driving motivated buyers right into the homes that you’re competing with and removing your property from their list altogether. Instead, it’s often best to price your home competitively so that motivated buyers continue to give your home consideration in a market that is moving quicker than before.
2) Be prepared for multiple offers
Traditionally, multiple offers are a rare occurrence in the Greater Moncton area. In a sellers’ market or balanced market however, buyers, sellers and Realtors® need to get comfortable with navigating the complexities of multiple offers to ensure that all parties are fairly represented while getting you the very best possible offer for your property.
Don’t be afraid to ask your Realtor® what their strategy is in the event of a multiple offer situation. Listen to what is said as well as what’s not said in their reply. Ultimately, you don’t want to be trying to figure out how to navigate this situation at the same time that it’s actually taking place.
3) Don’t skimp on listing preparation
It may feel tempting to just list your home without taking the time to spruce up your paint, fix that creaking floorboard or stage your rooms for sale but the truth is, getting your home show ready is essential in a sellers’ market. Why? See point #1 above. With buyers moving faster than ever in pursuit of their dream home, you don’t want your home to miss their shortlist because it simply didn’t show as well as it could.
Buyers’ don’t have the luxury of shopping every home in the market to decide which features they like best. Showing lists are short and efficient, designed to get offers made as quickly as possible. Your job in a sellers’ market is to make their list.
Thinking of Selling?
If you are thinking about taking advantage of Moncton’s market, don’t forget to ask your Realtor® specifically about the differences in approach to selling during a sellers’ market and buyers’ market; how they plan to navigate in the event of multiple offers; and what pricing strategy makes the most sense, right now.
I would love the opportunity to meet with you and discuss these very things! Give me a call or text so we can start planning how to get your home sold during this sellers’ market: 506-866-9693.