Now let me qualify that: Offering what a home is worth should always be based on real research. I say focus on recent sales of true comparables as well as what failed to sell. The information tells a story. (Now, if Justin Bieber owned it or something, we will have to be a bit more liberal on price). Actual sales prices will often be below what some Sellers were asking- sometimes well below, especially on higher end properties.

Buying a home is a huge transaction, especially for the first timer. While love and other emotions come into play and cloud judgment, I recommend to my Buyer Clients to buy smart. If they choose to overpay, well, I sleep well knowing I advised them responsibly.

While some properties are sharply priced, there are numerous ones on the market right now that are seriously overpriced. I recall one property I had priced for a Seller recently. They ended up listing with someone else- for over 40% above fair market for this home (and over $2 million above the 2012 assessed value). In my opinion, this particular situation reflects rather poorly on the Seller, and their adviser. I guess if someone was told their home was worth $12 million when the other guy told them it was worth $6 million, well, you get my point.

There’s a property in a very nice neighbourhood that failed to sell recently. Now, it is on the market for almost 2x the price it was when it failed to sell- and it was on the market for some time.

Clients of mine submitted an offer not too long ago for a property and the offer price was perfectly in line with real comparables (actually it was a generous amount above the last sale of an exact unit), only to have the Seller blow off my Clients. Well, guess what- it was my Client who were offended, to the point they lost interest. It remains unsold. The listing agent has contacted me twice since then, to see if my client wanted to offer.

Sellers need to be properly educated as they go to market. If they are serious about selling, they must be priced right… for today’s market, which is most definitely not the same market as the first half of last year, by any means. A little above market is one thing.

I sold 3 townhouses recently where I represented the Buyers. #1 was new, purchased for $5500 below asking (and HST was paid by the developer). #2 was purchased for $14,000 below asking. #3 was purchased for $15,500 below asking. Obviously, my Clients were very happy. We did not low-ball these Sellers; rather, I was simply prepared… backing up each offer with solid market data. Pretty hard to argue the facts, especially in a slower market. I take great pride in being prepared.

Sellers can be difficult, meaning many feel their home is worth far more than it really is. Some in the industry refer to it as being house-proud. Sellers are often emotionally attached to their home. It’s understandable. The smart ones will heed market facts and list appropriately. Would I accept a listing where the Seller wanted to go with a price much higher than I had suggested? Yes, but with the understanding that if it did not sell within 45 days, we would immediately go with my recommended pricing, or I would not accept the listing.

For a home to sell, buyers and sellers have to come together. They are equally important. Buyers should never ignore the facts of the market, or they risk overpaying. Buyers most definitely should never put the Sellers interests above their own.
Wayne Blackburn
Macdonald Realty Vancouver West
wayne@wayneblackburn.ca

Thank you in advance!

Joanne