Know the market before you buy

The asking prices of most homes indicate the current state of the market and usually mirror what similar homes nearby have recently sold for. A seller must balance the wish for the highest offer against a price reasonable enough to attract a pool of prospects and competing offers. Most listing agents counsel their clients on that balance. Some homes, however, are not properly priced, and a buyer who knows the market can tell.

Three numbers to watch

• Sales-to-active-listings ratio. Above roughly 20% for a sustained period favours sellers; below about 12% favours buyers; between is balanced. Greater Vancouver REALTORS® publishes this monthly by area and property type.
• Days on market. A home sitting well past the neighbourhood average is either overpriced or has an issue. Both are negotiating information.
• Sold-to-list ratio. When recent sales closed under asking, offers below list are normal; when they closed over, expect competition.

Read the listing history

Price reductions, re-listings and previous sales of the same home are visible on the MLS® and tell a story that the listing photos do not. Nadia pulls the full history on every home her clients consider.

Benchmark, not average

Headlines quote average prices, which swing with the mix of what sold that month. The MLS® Home Price Index benchmark is a better measure of what a typical home in an area is doing. Nadia will walk you through the benchmark for the neighbourhood and property type you are looking at.

Use it at the offer table

Market knowledge is only useful if it changes what you do. It should shape the first offer, the subjects you include, the dates you propose and how far you are willing to go. That conversation is the heart of Nadia's work with buyers.