Pricing Your Property
The most important decision we will make is determining the right asking price for your property.
Once we have achieved a realistic list price, you can expect to sell your home for the best possible price in the least amount of time.
The Benefits of Pricing Right
- Your property sells faster, because it is exposed to more qualified buyers
- Your home/condo doesn't lose its "marketability"
- The closer to market value, the higher the offers
- A well-priced property can generate competing (multiple) offers
- REALTORS® will be enthusiastic about presenting your property to their clients.
Determining the Value of Your Property
The market ultimately determines the true value of your property.
Before we compare your home to similar homes/units and establish a competitive list price, the following points will be considered:
- Community amenities
- Buyer supply
- Financing options
Getting to Know Your Market
A Comparative Market Analysis (CMA) is an indicator of what today's buyers are willing to pay for a home. It compares the market activity of house/condos similar to yours in your building and neighbourhood. Those that have recently sold represent what buyers are prepared to pay. The house/condos currently for sale represent the price sellers hope to obtain. And those listings that have expired were generally overpriced or poorly marketed.
We will prepare a CMA for your house/condo based on the most current market information. Together we will establish the proper list price for your house/condo.
Understanding the Factors That Influence Overpricing
The following are some of the reasons that sellers may have for wishing to inflate the price of their property:
- Extensive renovations/hidden costs
- Desire to purchase in a higher-priced area
- Original cost of the property was too high
- Lack of real market information
- Building in "bargaining room"
- Perceived "emotional value" (e.g. the house where your first child was born)
The Result of Overpricing
- Many sellers believe that if they price their property high initially, they can lower it later.
- Often, when a home is priced too high, it experiences little activity. Gradually the price will come down to market value, but by that time it's been for sale too long and some buyers will be wary and reject the property.
- On occasion, the price is dropped below market value because the seller runs out of time. The property then sells for less than its worth.
Missing the Right Buyer
You may think that interested buyers can always make an offer but if the property is overpriced, potential buyers looking in a lower price range will never see it.
Those who can afford a property at asking price will soon recognize that they can get better value elsewhere.
The Importance of Early Activity
As soon as a property comes on the market, there is a flurry of activity surrounding it. This is the crucial time when REALTORS® and potential buyers sit up and take notice. If the property is overpriced, it doesn't take long for interested parties to lose interest. By the time the price drops, a majority of buyers are lost.