What factors determine what I will receive for my house?
Market Conditions
This is the most important factor. Market conditions can vary drastically from area to area. Think of selling a home in a small town where nothing different has happened for 100 years. Now think of selling in an area where people are flooding in. These very different market conditions will mean very different pricing, length of time on the market and differences in negotiating the offer. If you have sold a home before, the type of market conditions that you were accustomed to may be totally different than the market conditions today. Sometimes the market is very fast and there are not enough listings. People end up paying full price or over price and competing with other buyers for the same house. This is called a sellers market, because the seller will receive top dollar for his home. You often see a market like this in areas that are growing rapidly or have new industry moving in.
Barrie is such a location, with the designation of being one of the fastest growing communities in North America. Our market is fast especially in early spring and early fall. Barrie house prices and taxes are still quite realistic. With our proximity to Toronto, the major highway connections and being situated on Lake Simcoe, our growth is expected to continue for quite some time. The go train has been an excellent addition to our city. Many of Barrie citizens work in Toronto. Barrie is out of development land. The city has just annexed land from the surrounding townships of Innisfil.
A buyers market occurs when you have an area where, perhaps the major industry has closed its doors. Many people are out of work and have to make a move. The market is inundated with homes. Some people are more desperate than others to sell. It is unlikely that there would be a lot of people moving into the area, so when someone does he has the pick of the litter and strong negotiating power.
Condition of your Home
This is a factor that you do have control over. You can choose to improve your home or you can choose to sell it as it is. Often if you have a home that shows very well, you are best to correct any flaws and freshen up paint etc. This should assure you of being one of the homes that a buyer will try an offer on and should net you the best possible price. It has been my experience that in slow economic times, people look for fixer-uppers and don’t mind a bit of elbow grease. In good times, people just want to bring their things in the door, stretch out and relax. Refer to my list (Getting Ready for the Market) for tips on how to prepare your home for sale.
Location-Location-Location
Buyers still enjoy established areas with lots of trees and parks. Often though, you may find the older areas are tired. Some homes that are 20 to 60 years old are solidly built and are on good-sized lots. They often have features like hardwood floors, fireplaces or pools; but many are lacking in style and functionality. Small bedrooms, lack of closet space and lack of ensuites are a few examples. Replacing roofs, furnaces wiring and windows are the down side and often do not add a lot to re-sale value. If your current home is in this category, then perhaps it is time to think of selling while the market is still good. If you are buying, make sure the area will support whatever repairs you wish to make. In other words, don’t buy the best house in the area and then sink a lot of money into it, if the neighbouring homes are in a lower price range. If you plan to live there for 20 years, that is okay but many Canadians move on average of every 3 to 5 years.
Newer areas
On the other hand are often sterile, cold and impersonal. Garages built out front to get more house on a small lot, homes close together, no variation in styles are often the result. Most new subdivisions today in the City of Barrie have trees planted as soon as construction is complete. There is parkland dedication in every plan of subdivision. Look at trends in the market. Will our perception change about housing? With E-Commerce, will more people work from home? Will they need bright rooms for offices? How about computers? How many people today have an area set up in their home for their PC? Will we accept smaller yards because often both parents are working and kids are in day care or school? We may not choose to spend our valuable day off doing yard work! Will we move towards community centers and local events? In the city of Toronto, shared gardening plots are springing up everywhere.
There are pro’s and con’s to buying a newer home and the same holds true for older homes. The important thing is that you consider all of the factors and make a choice that is right for you and your family. Whether new or old, choose an area with good re-sale value. Look for variety, style, good construction and lots of amenities.
If you are selling a home, you cannot change your location, so be sure to be objective when pricing you house for sale. Look carefully at the listings that you are competing with. If your home shows as well as your closest competition but your area is not as good, price it a little lower to attract buyers. Remember busy streets and high concentration of homes often scare buyers off, even if you find it does not affect you or your family. I lived in a home backing onto a schoolyard once. I loved the area and had absolutely no problems with the school. Buyers however, perceived that it might be noisy, or that the children may be a problem. It took me longer to sell than I had anticipated and I got less for my home than I had expected to get.
Timing 
Some times of the year are better to sell than others. The rule of thumb is that most people buy in the spring and move into their new homes in June, when school ends. The thing to remember is that if you are listed ahead of everyone else, you will have less competition. February has been very active in Barrie for years. Don't miss your window of opportunity.
Style of Home
If your home is the same as everyone else’s, then the house with the best decorating wins. If you have a unique home, that is to say a home unlike anything else in your area, the world is your oyster. You can receive whatever the market will support. Examples of this could be Century Homes because they are harder to find, ravine or large lots in a city environment or homes with a view of a lake or rolling hills. On the other hand, if your home is too unusual you will narrow the number of buyers that may be interested. This concept would also apply to decorating. Don’t expect to receive big bucks because your décor is just the way you like it. Your tastes may not always be the tastes of the buyer. Ask me which colours are in style when it comes time to list.
Expect to get top dollar if your home is clean, well coordinated and uncluttered. Currently with all of the” baby boomers” in the market now, bungalows have been the home of choice. Remember when it was hard to sell a two-bedroom home? They sell like hotcakes now!
Your motivation to move 
If your house is priced at market value, it should sell within 90 days based on today’s market. If it is overpriced it will take longer or may never sell. If you want to sell fast, price it just a little below your closest competition. If you have lots of time or wish to test the market, price it a little higher than your competition. You may find homes listed lower than market value because the seller needs to make a quick move. It does not mean that you have to price your home that way as well. Let the bargain home sell first and then you are back to an even playing field.
People often say, “I want to list high ’just tell them to bring me an offer.’ That approach does not work well in our market. If you were a buyer, why would you waste your time offering on an overpriced listing? You would immediately see that the home did not offer as much as others that you had viewed in the price range. If a home was listed above market value, you would be disappointed when you viewed it, as you would expect more because of the price. You would know that it will be a fight with the seller to get the price to where it should be so you would likely move on to a home that is priced properly. You can’t buy a Jetta and a Jaguar for the same price!
Where people work!
Many people who live in Barrie work in Toronto. Houses within commuting distance of Toronto often sell at a higher price than those outside a reasonable commuting distance. Every home south of Barrie has gone up substantially in the past 10 years. Therefore if you work in Barrie, consider buying north of the city. You may get a better deal. If you are a commuter, Barrie has a Go train in the south end and a new Go station near downtown is under construction.
Who you are listed with
When someone decides to move to another city, they usually use the Internet, phone or visit the area to try to find Real Estate Information. Most people will look for a name they recognize so often their first stop is Re/Max. We have offices all over the world and over 64,000 sales representatives. With e-business we have calls from all corners of the planet. One of our sales representatives sold a home here to a lady from England over the net. She had not even seen it! We get a lot of corporate transfers, relocations and referrals. Remember you usually get what you pay for! If you think you could save a little commission by listing with a cut-rate broker, you may in fact lose money if your home does not sell or your contract is not negotiated properly. You will always receive the highest and best price for your property when it is exposed to the greatest number of buyers and they have the opportunity to bid on it. Ask to see the agents marketing plan. Real Estate is a Service industry. Be sure to ask what services you will receive.
Marketing your home
A big factor to consider when selling is how your home is being marketed. You may feel that ads in the paper or open houses are the best way to sell a home but the internet is by far the best tool. Most buyers will shop on line to see what is available in the city that they want to locate in. Once the home is exposed to the MLS system, the most effective marketing is how your agent gets the information out to the other agents. In all likelihood, it will be an agent that sells your home. If a person sees your home on Realtor.ca or one of the large Real Estate sites they will call their agent and ask to view it. I feel that it is important to call sales representatives from other companies and “talk up” the listing. I like to have high quality colour feature sheets prepared to give to anyone interested in the property. I also leave copies at the home for the buyer to take when they view the home. Marketing is the process of getting the real estate community excited about your listing and willing to bring their buyers to see the home.
152 Bayfield St.
Barrie ON L4M-3B5
(705)722-7100
