From the blog...

ARE SELLERS NOW EXPECTING TOO MUCH?

Posted on: April 14th, 2022 by Chris Scott

Gordon Gecko would certainly have you believe that greed is good!

My philosophy is that you want to absolutely maximize as a seller and be a bit greedy but also diligent that you do not put yourself in a position where you will end up with less. It is a balancing act that I believe we at the Chris Scott Team seem to have mastered. I am confident we are putting our sellers in a position to maximize in this market. Footage of our clients leaving our office last week after a big offer during their presentation.

Seller Scenario: (disclaimer this is not a CST client)

This is a seller in Stittsville that came to market and got solid offers but did not get what they wanted. I think they are being a bit greedy here. Let’s look at the facts:

Let’s start with the upfront costs of a purchase before examining this scenario. When purchasing real estate an investor is typically putting up the down payment of 20%. The benefit is that when the market rises you as the seller get the return not on the down payment but on the entire appreciation of the asset. So let’s use this example for easy math. This is an actual home listed in March of this year:

This house was purchased for $800,000 a year ago. They just closed on it with the builder this year.

Down payment: $160,000 (estimate)

Listing price 2022- $999,000
Offer received and rejected: $1,200,000 (yes a 400k 12-month appreciation 33k/month was turned down)

It was slightly short of what they are looking for. They wanted 1.250M. They relisted a few weeks later at the same price and got the same result! This is not a client of ours but someone should be advising them that they have hit the jackpot and it is in their best interest to take this offer. At 1.2M the house was well above the comps.

To be clear the one year the return on their original $160,000 was well over 300%

I would be absolutely ecstatic! Right!

For them they are not getting the sale prices they expected. Now I am not against this strategy at all. I am seeing many sellers raising their prices after offer date to their desired price. But what is happening is now all those listings that did not sell are still on the market while new listings come to market this week. What will eventually happen as more comes to market. In the case I outline above I actually think they may end up with less than what they just got offered. Time will tell on that and I will happily update this blog with the results of that.

WHY ARE SELLERS WALKING AWAY FROM SOLID OFFERS:

Sellers are listing well below what they expect to get for their properties. In many cases, they are listed 100k-300k away from where they want to end up. When offer day rolls around they may only have offers that underwhelm their expectations. Keeping in mind that expectations right now are sky high!

These expectations are based on comparing their homes to others sold 6-8 weeks ago when there was absolutely no other inventory available on the market.

Things are getting interesting out there right now with so many variables at play. There has never been a more important time to have expert advice and interpretation of market trends.

    
 
 
        
   Anny Metivier 
 2024-08-13
 
 
  Over the years, with multiple military moves, we’ve had the opportunity to work with many real estate agents, and we can confidently say that not all are created equal. Chris, by far, has been the most trustworthy and easiest real estate agent we’ve had the pleasure to work with.
  
 
       
   Jake Moffat 
 2024-06-07
 
 
  Colin has been the best realtor to work with and helped us buy a great house in the perfect neighborhood. Colin and the rest of the team at Chris Scott were incredibly helpful the whole way and always available to answer questions, show us houses at a time that was convenient for us and were just generally professional and friendly during the whole process. We will recommend Colin and the team to our friends and family.
  
 
       
   Faith Woodley 
 2024-03-13
 
 
  I was a co-Executrix of an estate, and we had a condo that we had to sell for the estate.  In order to get the property ready for sale, we had to have the over 5,000 square foot condo painted and the carpets replaced.  Since the property was empty, Chris recommended a home stager that he uses on properties that require these services, and she did a fantastic job of staging the condo. It took the condo to the next level. The condo sold for a phenomenal price, and we were very happy with Chris Scott and his abilities.  He always gives over 100 percent to get the job done!  I recommend him to anyone that requires the services of a great real estate agent.
  
 
       
   Emily Bozanich 
 2023-10-07
 
 
  We worked with Rachel and she was beyond diligent. She is so organised and meticulous with details, it really helps when buying a home. She even agreed to do a virtual walk through for the home we ended up buying because we weren’t going to get there ourselves prior to offers being reviewed. She was also great with recommending areas to consider and avoid. Highly recommend.
  
 
       
   Cy Dixon 
 2023-10-06
 
 
  Rachel was amazing. She helped me find the perfect home for me and my son during a challenging time in my life. She was extremely patient and empathetic, professional and knowledgeable. I highly recommend her. No one will work harder for you than Rachel.
  
 
       
   Jeff C 
 2023-10-06
 
 
  Awesome realtor team very helpful and knowledgeable
  
 
       
   Nathalie Groupe Godin 
 2023-10-06
 
 
  Great service. Very knowledgeable. Super helpful. I’d use this team again.
  
 
       
   D Hynders 
 2023-10-05
 
 
  I recently used Chris' team to purchase a new house and I have to say that it was a pleasure to work with them.
  
 
       
   Megan Bixby 
 2023-10-05
 
 
  My husband and I purchased a house in the surrounding Ottawa area with the assistance of Colin from this group of individuals. We unfortunately were left with no choice but to purchase a home sight unseen due to our work circumstances. We originally considered not purchasing because of this.
We deliberated and chose to purchase a home after participating in FaceTime showings and we could not have been more satisfied. Colin was objective, professional, calm, informative, and realistic. He listened to our needs and helped us choose our home. The fact that we were pleasantly surprised, and a year later remain pleased as punch, says everything about how talented this company is. Will, without a doubt, use this company when we leave Ottawa.
  
 
       
   André Desjardins 
 2023-10-04
 
 
  We worked with Chris to find a home back in 2011 that would suit our desire to be close to work. He was nothing but professional and courteous! Listening to our needs and showing us what we were looking for. Years later, when we thought about down sizing and finding a renovated home, he took us around to see some in the neighborhood. He always open to helping us out in our searches

From the blog...

ARE SELLERS NOW EXPECTING TOO MUCH?

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