The seller’s time, effort, and investment are the most important parts of the process. The seller’s willingness to adequately prepare the home for presentation — and willingness to live in that pristine state for the time it takes to sell the property — will greatly affect both the sale period as well as the price at which the home sells. A market in which homes normally sell in no more than six months of listing is considered balanced or neutral, which means a good number of homeowners are selling and buyers are purchasing; therefore, neither has an upper hand. In Canada, ever since the end of the short recession in 2008, this has generally been the case in most provinces. However, market shifts can—and do—happen. A variable, for instance, like the recent pandemic — or low interest rates and or inventory levels — in any area will tip the scale toward homeowners to make a swift market or toward buyers to make a slow market. The typical selling time in a swift market might be 30 days or less, while that of a slow market may be up to nine months. Typically, any number below six months is considered a “seller’s market again Inventory levels must be always considered to determine what is the current market . EXAMPLE OF DIFFERING HOME VALUATIONS A buyer is interested in a home listed at $625,000. The online valuation determines the house is worth $650,000. Based on that estimate, the buyer offers the asking price. When a professional appraisal comes in at $600,000, and the existing tax records assess the home at $500,000, the buyer wonders why the values are so different and whether he overpaid. The house was listed at $625,000 because at that price, the home would sell in a reasonable amount of time. Why would the appraised value not be whatever a buyer was willing to pay?
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