The real estate market dynamics have strongly favoured sellers this past year. Statistically, while we have enjoyed a steady demand in all areas of our real estate community, the driving up of house prices is primarily due to a reduced availability of listings.
There are many factors contributing to the reduced inventory of homes. Some of the suggested reasons for fewer homes coming on the market include: seniors staying in their homes longer than previous generations; reverse mortgages encouraging people to use of the equity dollars in their home; a reduced price gap between existing homes and condominiums which are often viewed as the next step for baby boomers wanting to “downsize”; nervousness over increasing condominium fees; and global economic uncertainty.
Whatever the reason for reduced listings, this market presents a great opportunity for those who have considered selling. You, as a seller, may benefit from this current market opportunity of higher sale values. We have also seen increased numbers of multiple offer situations on existing homes for sale. Multiple offers can be seen as a wonderful opportunity for sellers and a challenge for buyers.
Unfortunately the real estate industry has seen “phantom offers” and “bully offers” which has necessitated some changes to the laws governing presentation of offers. As of July 1, 2015, a new Ontario regulation (307/14) implemented amendments to the Real Estate and Business Brokers Act 2002 under Bill 55 requiring: a) all offers to be signed and in writing; b) a new Standard Form #801 whereby all multiple offers must be identified and copies must be retained by the brokerage company.
Given these changing market dynamics, I believe that it is even more important to be properly represented by a professional sales representative. As a seller, you want to have the latest statistical analysis on the value of your home before making a pricing decision. Your best decision is not always about saving a few dollars on commission — don’t be penny wise and pound foolish.
As a buyer, you want to ensure that you take the opportunity to make the best decision for a successful offer on a property guided by honest information and experience. We are here to support your future housing needs and enable you to make good decisions with knowledge. Call, email or drop by our offices.