It’s happening: 2021 is drawing to a close. The ongoing pandemic has led to plenty of ups and downs this year, and the real estate market has been no exception. Low inventory and high (in fact, record-breaking) home prices have meant that many sellers achieved incredibly successful results—but what will the year ahead bring?

If you’re planning to sell in 2022 and you’re wondering what will come next, you’re not alone. We can’t predict the future of real estate, but given our decades of local experience, we can certainly provide some context and make a few educated guesses.

Here’s what you should know if you’re putting your home on the market in 2022…

You’re in a good position, no matter the home you have

There’s no denying that the local real estate market has been a hot commodity of late, and detached homes have been the most in-demand housing type. We’re seeing many buyers who are seeking more space during the pandemic, purchasing houses with some outdoor square footage. That said, we’re seeing a flurry of activity across housing types.

For one thing, limited inventory means many buyers need to be more flexible. That means they’re purchasing properties that don’t necessarily fit their ideal criteria and those that may not be in perfect shape. In addition, many buyers are looking to the future, thinking about what will constitute a good investment in the years ahead. 

For example, while bungalows have always made fantastic family homes, we’re seeing a resurgence of interest in this particular property type. Often, they afford buyers the opportunity to rent out their basements as separate apartments (an increasingly popular way to make some extra income). In some cases, they also contain the extra space required for the much-coveted home office.

Not only are some buyers more inclined to think about a range of property types, but they may also be more willing to consider various locations. In some cases, former city dwellers are moving away from urban centres in light of the pandemic. This has boded well for sellers in suburban and primarily residential communities—and likely will for the foreseeable future.   

All of that said, consider the fact that interest rates are set to rise by Q3 of 2020. When that happens, affordability will go down for many home buyers. That may or may not have an impact on how you should price your home (depending on who your most likely buyer is). A real estate professional who knows the local market can help you understand all the nuances involved. 

Wondering whether selling with our team is right for you? Learn more about what it’s like to work with us.

• How we Help Sellers
• Our Seller’s Guide

Buyer competition will likely remain strong

As a seller, you’re in a good position right now, as the market is very competitive. The most recently-released statistics for Oakville-Milton reveal that in November, the number of new listings added for that month were the lowest they’ve been in over a decade. At the same time, sales rose by nearly 5 per cent year over year.

Low inventory has meant more buyers competing for properties that are on the market, and we believe we’ll see more of this in the new year. If that happens, it’s going to mean more multiple offers scenarios, quicker sales, and more transactions where the sellers receive offers over asking. 

It’s worth noting that we may see a rise in the number of sellers looking to take advantage of these conditions. Even if low inventory persists to the extent that it currently exists, many of the sellers who do make a move will likely take steps to ensure their property looks its best—and you should too. It could mean the difference between selling your home and selling it for more than you ever could have predicted.

Expert advice will help you make the most of the situation

When it comes to the best time to sell, is the spring still considered ideal? Should your home be staged—or is it unnecessary when the market is this hot? Does it make sense to price your home below market value right now to generate multiple offers?

Sellers always have questions about how to get the best possible price and conditions. That’s especially true right now when many of the so-called “rules” of the market have gone out the window (at least for the moment). The good news is, with conditions so strongly in your favour, it’s a matter of making the best of a good situation.

If you’re preparing to take this life-changing step, your best bet is to find a real estate agent who will help you price, prepare, and market your property for the best possible price. It’s all about building a strategy based on long-term local expertise, which is why it’s so important to find a professional who can provide it. 

Interested in learning more about selling with us? Here are some of our latest selling posts:

• How to Set the Right Price the First Time
• Our Top 7 First Time Seller Tips
• The Costs of Selling a Home: What to Expect

The bottom line

If you’re preparing to sell in 2022, you’re well-positioned to achieve fantastic results. That said, there’s a lot of uncertainty right now, including in the real estate market. Now is the time to do your research and find a skilled agent who can act as your guide. Remember that even in a market that favours you, strategy is a must!

Think setting a price for your home is simple? Think again. Whether you settle on a number that’s too high or too low, there could be consequences. That’s why it’s so critical to set the right price the first time around. Here are some tips for ensuring the number you choose is just right—and why it matters…

The Dangers of Pricing Inaccurately

Days on market are really important. The first two weeks after your home is listed is crucial—if it doesn’t sell during this timeframe, buyers will likely begin to think there’s something wrong with it. That’s not always fair, but it is true.

This is the main reason to avoid overpricing your property. It could wind up languishing on the market. On the flipside, underpricing your home could mean you’ll get less money than you deserve. Depending on the market, it could also lead to multiple offers (more on that later).

Your Comparative Market Analysis

Your comparative market analysis (CMA) is a crucial document designed to help you make an informed pricing decision. It contains a wealth of information, including recent sold prices for local homes very similar to yours. Your property’s precise location, number of bed and baths, features, age, renovations—many factors are considered during the search for relevant comparables.

Only a skilled local agent can pull together a truly helpful CMA. Armed with this document, your well-positioned to take the first step towards setting your price.

Factoring in Marketing Conditions

Of course, current market conditions always play a role in what constitutes the ideal price. Your comparative market analysis can tell you a lot, but only an experienced local agent knows how shifts and trends can impact your sale.

In a buyer’s market, you’ll likely want to set a number that’s close to the last available comparable price. In a seller’s market, you can likely get away with adding around 10 per cent to that most recent price for a similar home in your CMA.

Considering Your Goals

Of course, your needs and selling goals are an important piece of the pricing puzzle. For example, if you really want to generate multiple offers in a hot market, your agent may suggest pricing your home slightly under market value. Of course, this strategy can come with its own risks—so make sure you discuss the pros and cons.

The point is, an experienced agent will ensure that your needs are front and centre. Make sure you clearly communicate them to the professional you’re working with.

Planning a home sale this year? Here are a few other resources to consider:

• How to Sell Your Home on Behalf of Your Elderly Parents
• Is Now a Good Time to Sell Your Investment Property?
• How to Maximize the Sale of Your Home with a Real Estate Agent

If Your Home Doesn’t Sell…

There are many reasons why a home may not generate any offers, and one of the most common is an artificially high price. Unfortunately, after a certain number of days on market, you may have no choice but to lower it. Your agent can help you determine when that should happen—and how much your price should drop.

This process is strategic, and it takes the expertise of a professional. Your agent may look at things like pending local sales that have price reductions. Another option is to take your home off the market and relist, in which case its history won’t be readily apparent (though an agent can find it if they want to).

The Power of Pricing

Needless to say, it’s crucial to choose the right number the first time around. Luckily, working with the right agent can help ensure that your listing price is accurate—and carefully selected to secure the best result possible!

Are you preparing to sell your home? If so, you probably have your eye on the prize—as you should. By preparing and marketing your property with care, you can help ensure the highest possible return. That said, you’re going to have some costs to contend with, too. Fortunately, by knowing what they are, you can avoid unpleasant surprises down the line!

Here are the costs of selling a home that you can easily anticipate and budget for…

Real estate commission

In a way, sellers are lucky when it comes to the financial side of the real estate transaction. You don’t have to pay a deposit, or cover major closing costs like land transfer taxes. That said, you are responsible for the commission of both agents involved.

As a general rule, the amount you’ll owe will sit at around 5 per cent of the purchase price. This sum will be split between your real estate representative and the buyer’s. It’s important to remember that when you work with an agent, you only pay for a successful result (which is to say, if you sell your home).

Legal fees

In any real estate transaction, you should have legal expertise in your corner. This professional will review your paperwork, make sure you understand the legalities of your contract, and generally ensure that your due diligence is done. Your fees will vary depending on the lawyer, but they’re typically somewhere around the $1,500 mark.

Home preparations

From repairs to decluttering to expert staging, there are a few steps that most sellers should take before putting a home on the market. In most cases (especially when it comes to staging), it’s best to have a professional handle them. Costs for these services vary widely, but you could be looking at many thousands of dollars.

Fortunately, if you work with a full-service agent, you’ll likely face fewer fees to get your property in s show-ready shape. A professional who goes above and beyond will include staging—and help out with other preparations, too. When they don’t have the skills to do a thorough job, they should have connections to local pros who do!

Even if you work with someone who provides the highest level of service, you may choose to have some minor repairs done out of pocket. Your agent can advise you as to which improvements have the potential to boost your return.

Mortgage discharge fees or prepayment penalty

Before you can sell, you’ll need to go through the mortgage discharge process to finalize the completion of your loan. You’ll sign some paperwork, and pay a fee that may tally up to a few hundred dollars.

If you’ll be paying your mortgage off early, you can also expect a prepayment penalty. The amount is typically the higher of:

• A sum totalling 3 months’ interest on what you still owe

• The interest rate differential (IRD)

Pre-list inspection

This cost doesn’t apply to every seller, but some opt to have a pre-listing inspection done. By having your home professionally assessed before it goes on the market, you can make pre-emptive repairs, price your property accurately, and prepare for future negotiations. If you decide to go this route, you’ll likely pay around $400 or $500.

Selling a home is exciting for many reasons, not the least of which is the return you’ll receive. Having said that, make sure you also factor in the costs associated with your sale. With a little bit of forethought, you can budget more accurately for the future!

To learn more about how we help sellers click here.