If you live in a highly sought out neighbourhood, you may be familiar with the newest sales strategy employed by some agents. Imagine you are sitting at home, enjoying a hot cup of tea and then you hear a knock on the door.
A well put-together man (or woman), dressed up, smiles at you while telling you there’s a motivated buyer who wants to buy your house!
Great news, right? Only one little hiccup – you never listed it for sale in the first place!
With increasing demand and low supply, many agents are frantically looking to find properties for their buyers and some of them feel like waiting around for something to come up is not efficient enough. So, they create an official offer with your name and address on it, as well as the amount they are willing to offer you and pitch it to you in the hopes they can persuade you to sell privately.
While they may have a tempting offer, considering you would likely get to skip out on paying commission, the hassle of showing appointments and open houses, you should know this is not an optimal situation for you.
First of all, the agent making you the offer has his own client’s best interest in mind – not yours! After all, that is his job! Moreover, it is a seller’s market right now and you should take advantage of multiple offers, where your home would go to the highest bidder. As per the Toronto Real Estate Board, since last year at this time, the amount of active listings is down 31.9% while prices have gone up 16.6% !!! If your property is listed, there will likely be many interested buyers, each offering to pay a little more than the last. Most importantly, however, you want to make sure that you know exactly what your home is worth before you sign your name on that offer! In other words, it may be best if you get an experienced realtor in your area to represent you should you decide to sell – someone who has YOUR best interests in mind and who can evaluate your home correctly to determine the correct market value. Otherwise, you are just rolling the dice.
August 23rd, 2016
Team Riaz Ghani