Dan Welyk Realtor®  Since 1999

There Is No Substitute for Experience.

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Considering Selling Your Home In Calgary

Further to my last post regarding 2004's list to sell ratio, something came up over the weekend that directly related to this topic. A new client called me wanting to list their home on the Calgary MLS. Over the course of the listing process it turned out the sellers had been planning to work with an Agent who had been in regular contact with them. It became apparent that several issues stopped these sellers from listing with this Agent; however, first and foremost on thier list of concerns was that the Agent presented them with a suggested list price that, the client felt was too high. This particular seller was educated in the current market of his neighbourhood and he was concerned (rightfully so) about the statistics of homes listed too high and sitting on the market. Seemingly, in his attempt to win over clients with BIG numbers, The agent lost some credibility and the confidence of this seller.

The sellers moved on to another Agent, me, to obtain comparable information & numbers.

I happily agreed to pull the data and provide the clients with my in depth, Comparative Market Analysis and Marketing Action Plan. After reviewing the information, I was a little uncomfortable presenting them with my findings because I had to present to them a suggested list price of $35K less than what the other agent had suggested! I wasn't sure if they were prepared for that because this was a much more significant (10%) decrease than perhaps even they were expecting! That is a HUGE discrepency but (I believe) because my Market Analysis shows sellers exactly where my numbers are coming from, they took it really well and were in fact pleasantly impressed with being respected as educated sellers! In the process of analysing ALL the data, it also became apparent where the other agent had more than likely obtained his suggested list price - by limiting the comparison to the currently active comparable homes - whereas mine was from ALL the data, what was listed, what hadn't sold and most importantly to a motivated seller, what WAS actually selling. I explained to the home owner, that when you are considering selling your home in Calgary, you need to be priced in line with what buyers are willing to pay for a home in your specific community - this varies dramatically throughout the city!!! In their community the homes that are currently listed and directly competitive with their home are listed at $160.00 per sq.ft whereas the homes that actually sold, sold for $132.00 per sq.ft. Why would a buyer pay $160 per sq.ft. when the other buyer paid $132 per sq.ft for a comparable home? I know I wouldn’t & I certainly wouldn't advise any of my clients to either!

Statistics show that in Calgary’s Real Estate Market, a home that is priced right should clear the market within 2 weeks and if it is just 5% higher than what it should be listed at - the length of time on the market triples - if it sells at all. So you can imagine a home that is priced 10% higher than it should be - it just would not sell.

Now back to my other post, that is exactly what happened to over 15,000 people trying to sell their home last year in Calgary. Their agent over listed - perhaps simply to get the listing - and ultimately disappointed their seller!

There are many hungry, inexperienced agents out there trying to get your business. Be sure you find out exactly how they came up with their suggested list price. Make them accountable to you the client.

It comes down to trust - do you trust your Realtor?

 

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