Granted
you are not obligated to price your home at what the agent suggested but at the
very least should your agent not be suggesting a reasonable market value? I have heard too many times in Brooks, that
the opening statement from the agent is “how much do you want to list for?”
I
seen a house listed at almost $100,000
over their actual market value, then after 2 weeks the price reduced by $30,000
– and then….they advertised a HUUUUGGGEEEE price reduction to appear like this is
a great deal – the house was still nearly $70,000 overpriced? This can’t be good for anyone in a real
estate market – it artificially inflates values for the next house in the same
neighbourhood and it loses all buyer confidence which results in insulting
lowball offers.
Look
around town – there are some ridiculously priced homes that have no business
competing with other homes that should be at that price. In my opinion, the agent should know better
and should be strongly encouraging their client to be at or close to market
value. After all, a falsely inflated
market helps no one in the City of Brooks.
I
spend a large amount of my time teaching the agents at RE/MAX Main Street
Realty, on how to properly price properties and how to give solid advice. We are not in the business of just putting up
signs – but educating our clients on the value of their home.
Enough
venting – to the statistics. First
quarter statistics are in (over a month now – but better late than never).
To
date, RE/MAX Main Street Realty is having a banner year. February and March competed with and exceeded
all of our expectations and in fact they were the best February and March’s
ever recorded (including 2008 – the last “good” year of real estate). The volume of sales has not overly affected
the actual price of real estate but the properties are certainly changing hands
quickly and often.
1st
Quarter Stats – Brooks and County of Newell
-2011 – 51 transactions vs. 2012 – 90 transactions
-
RE/MAX
Main Street Realty doubled their production this quarter versus the same
quarter last year with 49 transactions. (55% of the total transaction reported
by the Board)
-
The average sold price for Main Street Realty
also rose from $215,000 to $234,000, compared to the average in Brooks of
$210,000.
-
We
also show that Main Street Realty has conducted their transactions quicker –
the average days on market were reported at 133, compared to RE/MAX of
113. Doesn’t sound like much, but 3
weeks can feel like a lifetime when your property is up for sale.
Overall,
we are not expecting big jumps in values of properties, in fact I wouldn’t be
surprised if a correction happened this year or in the very near future of
10-15% decrease (as reported on CBC May 1, 2012 as an overall national
correction). I also believe the
stability in prices and the real estate market in Brooks is a sign of strength
in our local economy. 2012 looks like it
will be a great year and I am certainly looking forward to that.
As
always, if you have any questions or comments about real estate in the Brooks
market, never hesitate to contact me.
