AT HOME IN THE REGION:
List price? Take it with a grain of salt.
by Cheryl Goetz, Real Estate Agent, REAL Broker Ontario Ltd.
Right now in Waterloo Region, listing prices can be all over the place, and I'm sure you see it too, even as a passive scroller on realtor.ca.
This is happening for a few different reasons. Some sellers list low to attract multiple offers, some list at value, and some list high to negotiate down, or they're still stuck on what their neighbour sold for in 2021. This is why I remind my clients that the list price is arbitrary. Focus on your wants-and-needs list, and let me focus on what the data says about value.
So instead of anchoring to the list price, here are the 4 numbers I tell every client to keep in mind during the showing and offering process:
Your pre-approval. If you're buying with the help of a mortgage, getting pre-approved is a must. It tells you the approximate maximum you're allowed to spend.
Your budget. Most people I work with get their pre-approval and then choose to work within a lower budget so they feel comfortable in their day-to-day life. One client put it perfectly: "We'd rather go on vacations and be ready for emergencies than be house poor."
The market value. This is what the home is worth based on current market trends and recent comparable sales.
The amount the home is worth to you. This is where things get personal, and it can differ from market value. Say your budget is $800,000, and market value says the home you love is worth $800,000, but it needs a new roof and furnace. You might prefer to offer $790,000 to leave yourself some room to handle those costs.
Moral of the story: keep these 4 numbers in mind, stay within what you're comfortable with and what your goals are, and don't let anything pressure you outside of it.
Thinking about making a move this year?
Reach out anytime, no pressure, just a conversation.
Cheryl Goetz, At Home Co.
Real Estate Agent, REAL Broker Ontario Ltd.
Waterloo Region Rhythm Partner
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