Everything sells, when it hits market value. But, determining market value can be challenging for us cottage owners. Yes, we can compare our property to our neighbours and speculate about the possible value in the renovations that we have completed over the years, but when it comes to selling your property, it really boils down to market value. The market has been a challenge for many of us over the past number of years, with stock markets plunging only to soar again, property values skyrocketing in some urban centres, and cottage/recreational property sales bouncing up and down with little predicability.
So, how do we understand the value of our property? First of all, it is important to understand that other listings and MPAC values may have little to do with the value of your property. What we do know is that properties that are listed over market value sit on the market and those that are listed below market value, are typically sold very quickly. The key is to carefully determine and set a price that is going to meet current market value; to create a good level of interest and a reasonable amount of time on the market.
There is so much emotional investment wrapped up in our cottage properties…the memories are invaluable. However when it comes to selling your property, it is very important to objectively consider property value and building replacement costs in the equation. What is your property worth and how much is the building(s) worth. And yes, there is definitely some subjectivity in deciding the value of a property, but there is no denying the reality that when property is priced at fair and current market value, there is generally much more action from interested buyers!