Sellers: Beware of 'Being Led Down the Garden Path'

July 2023

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Merriam-Webster describes this as expression " to deceive (someone): to cause (someone) to go, think, or proceed wrongly".

 

 

 

I hope you are all enjoying a beautiful summer here in the Lower Mainland. How lucky can we be when we consider the world conditions at large?

 

What, exactly, am I referring to?

 

I want to be candidly open below regarding SELLER'S wishing to list their home for the best possible price, especially in a strange market that we are now experiencing in the Lower Mainland and in particular, West and North Vancouver.

 

In my last Newsletter, I focused on TRUST, LOYALTY AND HONESTY; values I hold dear in every corner of my life. In Real Estate, as in any profession, there are varying degrees of those qualities.

 

These are unusual times and SELLERS need to be vigilant that they are NOT being 'Led down the garden path' by Agents eager to list their home by giving a higher-than-realistic price, to simply appease the SELLER but not advising in their best interests and raising unfair expectations.

 

Home Owners need to be able to TRUST the Agent that they are getting listing advice that is an asset to selling their home for the best price in a timely manner vs the Agent's interests. Over pricing a listing gives the SELLER false expectations while the Agent is happy having the listing. This tactic is not honest or ethical, in my opinion and the Agents that do this are well known in the Profession and they do NOT do their SELLERS any favour. Choices all round are important.

 

What happens next? There are few if any showings and the SELLER then has to lower the price repeatedly over time, to arrive at a realistic listing price. BUYERS will understand the scenario from their Agents. Ultimately, the SELLER will probably have to accept a much lower offer than what they would have received if the home had been listed by the Agent, with the SELLER'S best interests at heart from the get-go! This is NOT the path SELLERS want to take.

 

Presently, there continues to be low Listing inventory and few sales with rising mortgage interest rates by the Bank of Canada - possibly to continue. (Link: Canadian Real Estate Assn & Bank of Canada rising interest rates).

 

Despite the low inventory which should assist Home Sellers, it's not that simple:

 

• with Mortgages being less available for BUYERS to obtain there are fewer BUYERS;

• BUYERS are not going to pay for an overpriced listing, instead downsizing expectations;

• or cannot afford to buy the home they desire and are waiting for better circumstances hoping for rate reductions and more selection of Listings that may or may not be in the offing.

 

For selling a property, no matter how lovely, it is key that a List Price be evaluated properly to advise the SELLER on obtaining the best possible price in a timely manner.

 

In the past month, there have been zero Sales on the North Shore in the $4Million to $5Mill bracket, except for a beautiful, new home in North Vancouver that SOLD in a little over a month for the full, asking price: $4.088 - 4,362 sq ft. - well priced by the Listing Agent.

 

Contrast that with two homes listed for $4.28 million and $4.398 that were Sold within the last month, well below list prices respectively, 13.8% and 17% below - both for $3.76 million.

 

Lower-priced condos are sometimes getting multiple offers with BUYERS downsizing and seeking affordability. However, Condos in the higher price ranges along with Detached homes are showing signs of price reductions to fit market trends and more appropriate prices if they haven't sold. The market doesn't show signs of changing in the foreseeable future. Thus, it is best to sell now and price well.

 

I am delighted to work beside my friend and Co-Owner/Co-Founder of Angell Hasman and Assoc. Rlty. Ltd., Allan Angell. SELLERS/BUYERS can count on sound advice with integrity and we would never lead them 'down a garden path'.

 

On occasion, we have missed getting a listing because of our honesty and the SELLERS understanding better what we had advised - too late. All of our Clients - who trust us and take our well-founded advice are happy and satisfied with their Real Estate Transactions. Commissions are welcome but reputations are more important.