Shirley Lewis
Sales Representative

519-440-2809
shirley@realtyresults.ca
Serving Bruce and Huron County

The Property Shoppe, Real Estate Brokerage
Each Office Independently Owned and Operated
Office 519-396-3300, Fax 519-396-3377
Free Home Evaluation
Have New Listings ...
Free Resale Report
Presale Condos
U.C. Tower 31 Gladstone 57 Brock 430 ESSA Rush M City III Line 5 Stockyards Origin Lofts Lakeside Scout East Junction 2475 Eglinton 250 University Ave 543 Richmond 5400 Yonge Kings Landing The Poet King Toronto East 3220 Encore Theatre CG Tower 139 Church The Winslow 55 Charles The Stockton 540 King West 293 The Kingsway Park Terraces WaterWorks The Insignia Saturday Junction House The Well Evermore 831 Glencairn 2500 Yonge Wynford Gardens Artworks Tower Erin Square Vendôme The Keeley M The Garden District M2M Ellie Phoenix Aqualuna Universal City Prime 50 Scollard DTK The Cardiff Central 9th and Main ONE28 Pavilia UOVO Artists Alley II Maverick Auberge On The Park II Playground Sage X Theory Sugar Wharf Lumina Highlight Elgin East ERA at Yonge IN.DE Express 357 King West Saisons II The Prestige Riverside Square 5 D'or Markham Square 2 Guildwood 4800 Yonge Lakevu Bower Nord West Lakeside Residences Social The Kip District II The Diamond on Yonge M City II One Yonge East 55 Southport Square Nautique Lakefront Amber Valhalla Town Square Kingly Auberge On The Park Kingsway By The River 2 Harris Square Mississauga Square Saisons E2 33 Yorkville The Charles at Church Water Edge Avia Symphony Edge Towers Peter and Adelaide One Forest Hill Eight Forty Perla Towers ZEN King West Bauhaus Oak and Co Museum FLTS Cypress The Roncy Wesley Tower Television City B-Line 609 Avenue Road Indigo 2 Scoop West DuEast The Point Platform Queensway Park Trinity Ravine Towers 7 On The Park SF3 Avenue 151 Yorkville Plaza Midtown Avro Bianca Nobu Residences Artists Alley SuperSonic Canada House Panda Fleur Vita Two Transit City Westwood Gardens Nola Affinity Paradigm East Mirabella Bloor Promenade Islington Terrace The Bluffs YongeParc Wish The Plant Lake & East Lighthouse East Vita on the Lake Time and Space Seasons II Liberty Central II Nord East Sage Prestige The Icona M City I Ivy Via Bloor Mills Square The One Canvas 159 SW St Lawrence Aquabella 8 Cumberland Home Selene EV Royale MAX 75 On The Esplanade Seasons Vivo The Wyatt Joy SweetLife The West AXIS Grande Mirage AYC Park Avenue Place 2 Charisma Halo Residences on Yonge URL Bloorvista at Islington Terrace SIX25BV Rodeo Drive Empire Midtown The Kennedys The Park Club The Vanguard YSL Residences York 875 Queen East Parfait At Atria Sail 88 North Eighty One Wellesley The Rocket Cocoon Cosmos The Bennett on Bayview Fortune at Fort York Arc Howard Park The Mercer 330 Richmond Whitehaus Bside Minto Westside The Lanes The Met 158 Front SQ2 Heartwood the Beach Fifth on the Park Sonic The Step 150 Redpath Pier 27 Tower Picnic The High Park River City 3 Danforth Square The Bean The Clover on Yonge Connect Grid Stanley East United On The Danforth 609 Sherbourne St The Jack The Clairington LNX Daniels Waterfront The Bartholomew Tea Garden The Ravine Beacon Park Avenue Place Avani 2 at Metrogate Art Shoppe The Rosedale on Bloor Citylights on Broadway Blue Diamond Aquavista at Bayside Lotus Zigg Teahouse 5959 Yonge Minto Yorkville Park The Selby Riverside Square University Suites The Eglinton VOX The Academy The Yorkdale Bristol Forward 87 Peter Soul Minto Westside Wellesley On The Park 50 at Wellesley Station Alter The Code The Cumberland The Taylor Totem Dundas Square Gardens YC Core Smart House Downtown Erin Mills HOT Gordon Woods Pinnacle Grand Park II PSV 2 at Parkside Village 1 Yorkville SQ at Alexandra Park On the Go Mimico Garrison Point Sage 6 Solstice Eau Du Soleil 2 The Dragon 181 Davenport 1 York Aqualina at Bayside 2221 Yonge 155 Redpath 383 Sorauren The Epicurean HighPark Casa 3 Axiom Eleven Superior The Station The Mark Yonge + Rich The College Quartz TRIO at Atria Beach Hill Residences The Randall Residence FAD King Blue Sage II Harbour Plaza Sixty Colborne The Britt 101 Erskine Canary District Pearl 2 Ruby 159 Wellesley Street Xpression II Xpression I 129 St Clair Crystal at Pinnacle Uptown Noir The Essential FLO The Carnaby Lofts TAO E 109 OZ ALTO Massey Tower CASA 2 Local At Fort York Abacus Lofts SkyCity INDX 501 Yonge Life Fabrik Grand Palace Minto 30 ROE Ten York 88 Scott The Hill Indigo Bay 7777 Weston Road 1331 Yonge Street The Perry Condos The Remington Centre 30 Ordance Street Nero Key West 1Thousand Bay Rise 365 Church Karma Mirage The Brant Park Picasso Alto at Atria OpArt Lofts Flaire Jade Waterfront Cloud 9 133 Hazelton Spectra The Carlaw King Plus Condos The Beverley Hills Monde The Bond Rain 2 Ion Pears Avani at Metrogate Post House IVORY River City 2 The Yorkville Yorkville Plaza U Condo II U Condo I Tableau Studio II Studio I Rain 1 Pace One Bloor Neon Condo MYC Liberty Central King Charlotte Imperial Plaza ICE II ICE I Garrison Fuse Five Madison II Madison I Exhibit Cosmopolitan Bisha Backstage 3018 Yonge EXPO City
Become a Member
Name:
 
Email:
Phone:
Address:
Short Message:
Subscribe me:
Security Code:

How Current Market Conditions Can Affect Your Offer Price

We have all seen the news accounts of the gyrations in the real estate market. It seems that the market seems to spike, then drop, then spike again changing the price of any given property by many thousands of dollars from one year to the next. The reason for that roller coaster ride is that the real estate market is keyed in to a dizzying number of social and economic factors, including inflation, the prime interest rate, the percentage of unemployed workers in an area, and overall consumer confidence about where the economy is heading.

 

What many people do not fully appreciate is that these real estate market gyrations are not necessarily national or even provincial, but strictly local. A major factory closing in one suburb of a large city can seriously depress the property values in the surrounding neighbourhoods, while the other suburbs can continue to thrive.

 

The current state of a real estate market in any one area is generally referred to by three different terms:

 

A Seller's Market

 

When there are more buyers than properties available so prices rise, homes sell fast, and competition is fierce.

 

A Balanced Market

 

When there is an approximate balance between buyers and available properties so homes tend to sell for reasonable prices and in statistically average times.

 

A Buyer's Market

 

When there are more homes on the market than buyers interested to purchase them, so prices drop, properties languish on the market, and sellers are motivated to make deals for a sale.

 

When determining on how to price your offer, there are various aspects to consider. First of all, you have to look at the asking price. In the vast majority of cases, the initial asking price of a residential property is quite close to the actual real market value at the time of listing. However, this is not always the case. In some instances, sellers are so convinced that their home is "special" that they will overrule the best instincts of their real estate agents and force them to list the property well above what could remotely be considered a reasonable market price. If they are lucky enough to be in a Seller's Market, there very well may be a buyer who steps up to the plate and makes an offer that high, but in most cases that does not happen. Therefore, the asking price is a good overall guideline to the actual current value, but not an absolute.

 

It is also important to be finely attuned to the dynamics of the market in your area. Your real estate agent can assist you with a determination of exactly where the market is heading. If you are in a Seller's Market you may have to move fast on a property you want, as there are likely several other buyers writing offers right now. That means that you need to not only raise your preferred offer price, but also have to be ready to confront the dropping of contingencies and providing as much flexibility as possible in the closing date. It is not at all unusual for multiple offers to be presented in a Seller's Market all exceeding the asking price by several percentage points. If you are buying in that sort of dynamic, you have to be ready to confront the significantly higher price of admission.

 

In a Balanced Market, your offer should be just about one percent or less below the asking price. This communicates to the seller that you are interested in the property, but are not a pushover. You should also be ready to get involved in some negotiations as in some cases counter-offers can go back and forth turning on as little as a thousand dollars on a half million dollar home.

 

In a Buyer's Market, you're in the captain's chair. Properties tend to stay on the market for uncomfortable periods of time and sellers can become motivated to the point of anxiety. This is when your offer price can be truly low-balled and it is not unusual to see offers accepted that are 5 percent or even more below asking price. You can also begin to specify vendor take back mortgages and other forms of creative financing in a Buyer's Market that would never be entertained in a Balanced or Seller's Market. If the seller is truly serious in selling their property, then they will likely consider your offer of unconventional financing which can make it much easier for you to qualify for a more expensive home.

 

It is obvious that no one has a crystal ball that can predict the real estate future, so the best you can do is react to whatever market you are in and utilize these guidelines to obtain the home of your dreams.