Every industry has its myths and real estate is no different. Read on to discover and dispel three of the biggest myths in the Calgary real estate market!
A quick sale is not a function of an underpriced home. There is this unspoken length of time that sellers ideally want their home to be on the market for. If an offer is not received in 30 days, something is wrong. Or, if an offer is received right away, the seller concurs they should have priced higher. At any given time, there are a number of buyers watching the market and monitoring the new listings coming on the market. These buyers are not desperate, nor are they willing to pay above the value of your home. However, if they see a property that fits, they will write an offer. In almost all cases, a property sells on the open market for what it is worth. So, if you property was listed too low, then the market should have paid over the asking price for your property. In most cases, a quick sale is a combination great marketing and proper pricing.
One of the biggest real estate misconceptions is that one newspaper headline or one statistic is indicative of “the market” as a whole. Calgary has numerous real estate markets and all have responded differently to our recent economic downturn. If you live in an apartment style condo, your value could have dropped by as much as 12% in the downturn. If you live in a property valued above $1.5 Million, you could have lost 20% in the downturn. If you live in a single family house priced between $400,000 - $600,000, chances are, you lost almost nothing off your value . Crazy right? Other micro-markets are geographical areas, homes of different sizes, condos with age restrictions, and townhouses. So, if you ask the question “how is the market”? You should hear, “Well, it depends on the market you are interested in”!
This is a line that has been around for years and there are times that it rings true, but sometimes you just have forget about it. Location and communities have almost became a status symbol. We often hear, “I need to be in (insert location here)” but no homes in that area within your budget are appealing. Did you know you can save $1,000’s if you buy the same house 2 streets over in some communities in Calgary? Yes, location is important, but don’t be afraid to expand your search boundaries to include some gems in the next community over. Of course, there are exceptions to this, but don’t live and die by “location, location, location”.
Do you have any other myths you would like to share? Please comment below!