Hello? Is this thing on?
If you’re reading this, it means my new website is live, and I couldn’t be more excited to have a little corner of the internet to share with you! Of course, the thing I love to share the most is Calgary Real Estate, so make sure you check back often to see what’s new.
As an experienced agent, I love answering questions. I could talk for hours about market conditions, selling strategies, and what to watch out for. Over the years, there are a few questions that commonly come up when I’m talking to clients, friends, and family. Here they are!
When is the Best Time of Year to Buy or Sell?
This is always an interesting question, because the market is always changing. For many years, there were three times a year when we saw more activity. The past few years these seasons haven’t been quite as typical. In Calgary especially, there is a stronger correlation to economic, political, and environmental climates than there is in many other places in the country. That is kind of a convoluted way to say that any time can be good to buy or sell, depending on what you are looking to get.
A buyer looking for a potentially good deal might wait for inventory to be high so they can hopefully buy when prices soften, but some of the best deals actually come up randomly throughout the year, so it’s really important to be preapproved and have a solid set of criteria to be ready to act if a hidden gem suddenly becomes available.
Most sellers are interested in recouping as much value as possible from their initial investment, but there is always a trade-off. When homes are selling for a bit less, that same seller might be able to even out a softer sale price by saving on their next purchase. It’s really important to consider that, as well as the motivation behind the sale. Is it for family reasons? Is there a time frame attached? Depending on the motivation, strategically deciding when to sell can help get the best mix of price, timing, and terms.
When I work with clients, I form a strong partnership where we can really dig into the motivations for buying or selling, and we can formulate a plan for the best outcome.
How Long Does It Take to Sell a Home?
This is probably the piece of the puzzle that varies the most, and some of it is personal preference. The Calgary Real Estate Board posts up-to-date stats regularly. The average Days on Market for listings as of December 2020 was 59 days. This is only an average, so some will be quicker and some properties take much longer depending on area, price point, and features. Days on Market is the time from when the listing goes up online, to when it is marked as firm sold. Listings typically receive the most interest in the first two to three weeks on the market, so a real estate agent is always working to make the most of that time.
The days on market doesn’t include the steps that come before a listing is live, or after it’s sold. Sellers will want to budget at least two weeks before the desired list date for any repairs or updates, professional photos, and information gathering to prepare the listing. Once an offer is received, 10-14 days minimum are usually reserved for the buyer’s due diligence such as financing and inspections. Once the sold sticker is on the sign, there could be anywhere from weeks to months to the agreed upon possession day, though 30 days is common. This is negotiated during the initial offer to allow for parties to move, and for sellers to find a new home if needed.
All in, if a home sells in the first 60 days, the entire process is likely closer to 100 or 120 days.
Won’t I Save Money if I Buy from the Seller’s Agent?
This is one of the biggest home buying myths out there! There are two BIG reasons that buyers should always have their own agent to represent them – even when purchasing from a builder.
Your Agent Works for You! – If you approach a seller’s agent, they are already under contract with the seller, and legally it would be a conflict of interest for them to also represent you. They may refer you to a colleague, or they might ask you to sign a form saying that you understand that their first priority is serving their client and that they have no responsibility to you as an agent. This could come back to bite you should there be a discrepancy or disagreement during the sale process. Always BYOA (Bring your Own Agent)!
Savings Go to the Seller – Houses are priced to include agent commissions, and buyers do not pay them. Sellers do. In the seller’s contract they agree to remit a certain amount to both the seller’s and buyer’s agents. As such, when a buyer approaches the selling agent directly, it actually gives that agent the buyer’s agent commission as well! Now, often, the Realtor® will talk to their seller and pass some sort of discount on to them – but it will not affect the price the buyer pays!
Thank you so much for reading, and I am always here to answer your real estate questions. Advice is always free.
Your Caring and Committed Realtor®
~ Wendy
