Who is your neighborhood expert? And why does it matter? It probably doesn’t matter as much as you think.
I can imagine hundreds of realtors everywhere are cracking their knuckles and getting ready to post nasty comments on this blog. I get it!
Yes, it matters that you hire a competent Realtor. Yes, it matters that you hire somebody that knows the neighborhood and how to properly priced your house. I just want to get that out there from the get go.
I’m all about hiring someone who knows what they’re doing! But the catchphrase of ‘neighborhood expert’ is a little overrated in my opinion. And I’ll tell you why.
Our city Toronto and the areas known as the GTA, York, Durham and Peel regions, are one of the biggest transient migration areas in the country. Migration not only from province to province but from city to city, and from municipality to municipality. To be solely a ‘neighborhood expert’ may be putting you at a disadvantage.
Let me explain. The realtor that you hire needs to have a great understanding of not only the microeconomics of your subdivision but also the macroeconomics that will impact the people moving in and out of your neighborhood. It’s not just a matter of knowing the closest school the closest park and where to get the dog groomed. Those are all wonderful and good. But they won’t do you a heck of a lot of good if you don’t understand where the buyers are coming from, and what their frame of reference is for the lifestyle that they would like to create.
In Markham having a house on the cul-de-sac used to be a sought after location…about TEN YEARS AGO. In fact houses on cul-de-sacs sold for higher amounts of money. They were called the premium lot and when the subdivisions were originally built, the homeowners paid more for these lots. They commonly would put a pool in the backyard because it had a bigger yard. Now fast forward to today. The influx of buyers in Markham has been significantly over the last 5 to 10 years. There is a trend now for the preferred houses to be on a main street, on a bus route, without a pool.
If a Realtor does not understand where the buyers are coming from in this scenario, they might miscalculate the desirability and pricing of a sellers property. When you are interviewing agents, make sure they are well versed not only on the microeconomics of your neighborhood but on the macroeconomics of the trends that affect you.