Pricing Your Muskoka Property

UNDERSTANDING MARKET CONDITIONS

MARKET CONDITIONS	CHARACTERISTICS	IMPLICATIONS
Buyer’s Market: The supply of homes on the market exceeds demand	High inventory of homes. Few buyers compared to availability. Homes on the market longer. Prices tend to drop.	More time to look for a home. More negotiating leverage.
Seller’s Market: The number of buyer’s wanting homes exceeds the supply or number of homes on the market.	Smaller Inventory of homes. Many buyers. Homes sell quickly. Prices usually increase.	May have to pay more. Make decisions quickly. Conditional offers may be rejected.
Balanced Market: The number of homes on the market is equal to the demand or number of buyers.	Demand equals supply. Sellers accept reasonable offers. Homes sell within an acceptable time period. Prices generally stable.	More relaxed atmosphere. Reasonable number of homes to choose from.

The Muskoka real estate market is always changing. It helps to understand how market conditions affect your position as a seller. Let us provide you with current market statistics in order for you to make an informed decision about your Muskoka cottage for sale.

PRICING YOUR PROPERTY

The single most important decision you will make is determining the right asking price for your property. Once you’ve achieved a realistic sale price, you can count on your property being professionally marketed and promoted to bring more buyers to your door. You can also expect to sell your home or cottage for the best possible price in the least amount of time.

GETTING TO KNOW YOUR MARKET

A comparative market analysis is an indicator of what today’s buyers are willing to pay for a home. It compares the market activity of homes and cottages similar to yours in your neighbourhood. Those that have recently sold represent what buyers are prepared to pay. The Muskoka properties currently listed for sale represent the price sellers hope to obtain. And those listings that have expired were generally over-priced or poorly marketed. We will prepare a comparative market analysis for your property based on the most current market information. Together, we will establish the proper list price for your Muskoka home or cottage.

DETERMINING THE VALUE OF YOUR HOME

The market ultimately determines the true value of your property. Before you compare your home or cottage to similar properties and establish a competitive list price, the following points should be considered:

Location
Size
Style
Condition
Community
Amenities
Buyer Supply
Financing Options

THE BENEFITS OF PRICING RIGHT

Your property sells faster because it is exposed to more qualified buyers
Your property doesn’t lose its “marketability”
The closer to market value, the higher the offers
A well-priced property can generate competing offers
Realtors will be enthusiastic about presenting your property to buyers

UNDERSTANDING THE FACTORS THAT INFLUENCE OVERPRICING

Extensive renovations/hidden costs
Desire to purchase in a higher-priced area
Original cost of the property was too high
Lack of real market information
Building in “bargaining room”
Perceived emotional value

THE RESULT OF OVERPRICING

Many sellers believe that if they price their property high initially, they can lower it later.
Often, when a home or cottage is priced too high, it experiences little activity. Gradually, the price will come down to market value or below, but by that time, it’s been for sale too long and some buyers will be wary and reject the property. Resulting in the property selling for less than it’s actually worth.

MISSING THE RIGHT BUYER

You may think that interested buyers “can always make an offer”, but if the property is overpriced, potential buyers looking in a lower price range will never see it.
Those who can afford a cottage or home at your asking price will soon recognize that they can get better value elsewhere.

THE IMPORTANCE OF EARLY ACTIVITY

As soon as a property comes on the market, there is a flurry of activity surrounding it. This is the crucial time when realtors and potential buyers sit up and take notice.
If the property is overpriced, it doesn’t take long for interested parties to lose interest. By the time the price drops, a majority of buyers are lost.