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HOW TO SELL A HOME IN A DIFFICULT MARKET

Introduction: 2026-01-01 IT IS A DIFFICULT TIME TO SELL A HOME A lot of the changes in the real estate market are being experienced right across the province. Basically, shortly after COVID struck, real estate prices increased dramatically. The peak average sale price in the GTA was in February 2022. Since February 2022, average prices have dropped dramatically.

MORTGAGE INTEREST RATES INCREASE The Bank of Canada 5 year conventional mortgage rate had increased from 4.79% in February 2022 to 7.04% since 2022. The 1 year rate, over the same period, increased from 2.79% to 8.09%. Mortgage rates have recently dropped in the past few years but are still higher than February 2022.

SALE PRICES DROP According to the Toronto Regional Real Estate Board (TRREB), average sale prices have steadily dropped 25% in the GTA from a high in February 2022 of 1.334 Million to 1.007 Million in December 2025. This was also 5% less than December 2024. So a home in the GTA that might have sold in February 2022 for $1,000,000 would sell for $750,000 currently. Rural Areas, outside of the GTA, have witnessed larger percentage price reductions since February 2022.

SALES FORECAST The Ontario housing market in 2026 is expected to face a continued, challenging correction, with prices projected to decline - particularly in high-cost urban centers like Toronto— due to high inventory, low sales, and a "buyers' market". Many analysts predict further price dips through the year, offering improved affordability compared to the 2020– 2024 period

RECAP This pamphlet is intended for both home owners and realtors. It is really an outline for one of my personal presentations. If you are a home owner and your home is currently listed, please contact your agent to discuss what is in this pamphlet. If you have any questions or would like to particpate in a personal presentation, please do not hesitate to contact me directly On my cell at 416-484-8288 (phone or text) Or by email at aparks@johnstonanddaniel.com

Table Of Contents

1) PREPARE: How to prepare your home/listing to sell in the current market 2) ADVERTISE: How to advertise and promote your home/listing to sell in the current market 3) BETTER THAN COMPETITION: How to make your home/listing better than the competition 4) PRICE: How to price your home/listing to sell in the current market

How To Prepare Your Home To Sell In The Current Market 1) Maximize Curb Appeal First impressions are lasting impressions. Stand in front of your home and look at it critically * Is there anything as far as repairs and painting that need to be done * The view from the street is the first thing the prospective buyer sees * The outside should draw people inside * Keep your lawn trimmed and edged - the yard free and clear of refuse - remove snow and ice from the walk and porch.

2) Let there be light Lighting plays a vital role and is often overlooked when getting a property ready for sale * Dark hallways, rooms with little natural light, basements and bathrooms should be addressed * A minimum of a 2-bulb overhead fixture with maximum watt bulbs can transform a dingy area * There should be NO overhead receptacles without a light fixture *

3) Choose neutral colour palette Bold colours are great for living, but not for selling * Light and Bright should be your motto * Stick with a warm, neutral palette like tans, taupes and greys *

4) Flooring This is the other main area that always increases the value of a home * If their first thought is "I will need to replace these floors", I guarantee they are discounting their offers *

5) Clean Clean Clean This may seem like common sense, but unfortunately it's still the one area owners tend to try and shortcut *

6) Home Inspection Arrange a home inspection by a qualified home inspector

7) Servicemen Hire a gardener, repairmen and painters to spruce up the home and attend to the delinquencies that are noted in the home inspection *

8) Home staging A professional stager will make all the difference throughout the staging process * They know which rooms should definitely be staged, like the master bedroom * If you’re dealing with small rooms, furniture that is too large will just enhance the problem, so you’ll want to switch it out for pieces that fit just right *

9) Photography and Floor Plans Have a professional take pictures and prepare floor plans * Also have the company take drone pictures if applicable *

10) Digital Staging Another popular type of staging is "digital staging" * You have professional pictures taken and then send the pictures to a digital staging company to be staged and possibly digitally renovated * It, of course, doesn't cause as much disruption and is a lot cheaper * On the next page, I have attached digital staging pictures *

Actual Pictures

Digitized Pictures

How To Advertise & Promote Your Home To Sell In The Current Market 1) MLS Listing I believe that the best vehicle we have for selling a home in any market is the MLS system. * Most realtors and buyers go to the Agents MLS or realtor.ca to find new listings and existing listings. * What are the hooks that are going to draw the prospective purchaser and the realtors to your listing? *

2) Photos The photos should be taken by a professional photographer and show the better parts of the home. * If the home has a truly disastrous kitchen, don't put a picture of the kitchen in the gallery * If the furniture is terrible, have the rooms digitally staged to make the rooms more appealing * Do not feel you have to upload the maximum number of pictures in to the listing * Just put in the good ones * You don't have to tell the whole story *

3) Floor Plans Have your photographer produce floor plans of the house. * Attach them to the listing * Purchasers really appreciate receiving floor plans so they can place furniture or plan renovations *

3) Remarks Write your own remarks * Don't ask your assistant to do write the remarks * You are the sales expert * Think of why the prospective purchasers might want this house * Then give it to them * Do not use short forms * Write in an organized and logical way which is easy to read * Separate your sentences by bullets * Your ideas will then spring off the page * Again, you do not need to use the whole space * Just write about the good things about the house * You don't have to tell the whole story *

5) Open House Numerous public open houses are an excellent way of promoting a property * People attending an open house are probably coming to you for one of the following reasons - 1) They are interested in purchasing the house. 2)They live in the neighbourhood and want to see how the home compares to their home. Don't restrict yourself to weekends 2:00-4:00 * Try mid-week 4:00 to 6:00 *

6) Social Media Various social media websites are excellent places to promote your listing Instagram - LinkedIn - Facebook etc *

7) Print Media Various local and Toronto publications are an excellent way of promoting your listing and you * Make this part of your regular advertising

8) For Sale Sign It only makes sense to erect a For Sale sign on the front lawn and/or waterfront*

How To Make Your Home Better Than The Competition 1) Price Price is the most important feature for making your home better than the competition * I will be talking more about price in the next section *

2) Vendor Take Back Mortgage If your seller is just going to invest the proceeds of the home and go to a retirement home, suggest that they consider offering to take back a FIRST mortgage * One of the key things which has prompted the current downturn in the market has been higher interest rates * Because the interest rates are higher, some purchasers may not qualify for a large enough mortgage to buy your home * If your seller offered a First take back mortgage at an interest less than the market, the purchasers might be able to afford your home *

3) Conditional On Sale Of Buyer’s Property Most sellers are not keen to take a conditional offer because other potential buyers might not bother to look at your home * However consider the circumstances where it might be acceptable to your seller *

3) Conditional (Continued) Evaluate The Back-Up Listing a) Visit the property and figure out a reasonable opinion of value for the back-up property in this market b) Consider whether the back-up property is easier to sell in this market than your property is Add To The Normal Conditional Clause i) The property will not be listed for more than a certain amount ii) The property will be listed by a certain date on the MLS iii) The conditional time period will be for no more than 2 or 3 weeks (at which time the progress of the back-up listing will be reviewed to see if the condition should be extended) *

4) Freebies Consider adding Freebies to make your listing more appealing such as: The Seller will replace the roof before closing The Seller will replace the driveway before closing The Seller will replace the fence before closing All the appliances will be replaced before closing All the furniture will be included. The new Lincoln Navigator in the garage will be includedetc. - use your imagination. Barry Cohen of Re/Max noted in the broker‘s remarks section of a listing in the St Andrew‘s area of Toronto, that the Seller was offering a 3% take back mortgage and would help with the payment of the Land Transfer Tax.

Price & General Suggestions Price: Your initial list price is the first step in negotiating an offer After an extensive look at the very recent comparable sales, the currently active listings and the action of the market, you determine a list price to draw in an offer from a qualified Buyer In this current market (which continues to decline), choose a list price below the recent sales and the active listings. When the market continues to decline, you need to be ahead of the competition. Qualified buyers who are in a position to offer should say when they see your home interesting home at a good price - Let's offer. If your home does not get any interest, don't be afraid to request a reduction. If you feel a price reduction is warranted, you owe it to your clients to tell them so and why you think it is warranted.

5) Other Suggestions Always treat your listing like it is a new listing Always follow-up with showing agents. I suggest sending them a text asking for feedback and say "Thanks" at the end of the text. I always get a response. Ask the showing agents if they have any suggestions. Immediately respond to other agents. Only about 10% of listings are sold by the listing agent. So you need to sell to the other agents. Keep your Seller up-to-date frequently

About Me I started my business career in 1971 with The Bank Of Nova Scotia and I have been selling real estate since 1987. I initially sold real estate in only the Toronto market for 30 years and in my heyday was in the top 1% of Toronto agents. For the last 10 years I have been selling in both the Toronto market and the Peterborough & The Kawarthas market. I have experienced the ups and downs of the real estate market over the years as a bank manager and a real estate broker I would be pleased to share my experiences with you

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Arthur Parks BROKER/REALTOR® parksarthur@gmail.com O: 416.441.2888 | C: 416.484.8288 parksrealty.ca