Pricing Your Property
If you have any questions or would like more information about pricing your property please Contact Us. If you are planning on buying or selling a home or property please visit our Buyers Page or Sellers Page.
How Should You Correctly Price Your Toronto Area Real Estate?
When preparing to sell your home, the single most important decision you will make (after choosing a great real estate agent, of course) with the help of your REALTOR® is determining the most effective asking price for your property. Once you've settled on a price that is realistic and competitive, you can count on your property being professionally marketed and promoted to bring more buyers to your door.
The Benefits of Asking the Perfect Price for Your Property
1. Your property has a good chance of selling faster because it is exposed to more qualified buyers.
2. Your home is far less likely to lose its "marketability."
3. The closer your asking price is to market value, the higher the offers will be.
4. In many cases, a well-priced property can even generate competing offers.
5. The best Toronto area REALTORS® are able to recognize an excellent price when they see it – and they will be enthusiastic about presenting your well-priced property to buyers.
What Affects Your Asking Price?
Urgency. How quickly must you sell your home?
Market Analysis. What price did similar homes in the area sell for within the last six months?
Competition. How many other homes are available in your price category and area?
Available Financing. Does your home come with an assumable mortgage that is below today's rate? What are the current interest rates?
What Doesn't Affect Your Asking Price?
Your Home’s Original Value. Your price is determined by today's market.
The Amount it would Cost to Build Your Home Today. A replacement value is determined for insurance purposes only.
Personal Attachment. The buyer's purchase decision is based on his/her own emotions, not yours.
Neighbours’ Claims. Don't listen to what your neighbours tell you about their opinion on the fair market value for your home – you will get better advice from an experienced and licensed REALTOR®
who is familiar with pricing trends in home markets across the GTA.
What Happens to an Overpriced House or Condo?
You'll Help Sell the Competition. In greater Toronto, just like anywhere else in Canada, correctly priced homes look that much more attractive if yours is overpriced. Most home buyers
are competitive shoppers.
Your Home Will Stay on the Market Longer. Did you know that 80 per cent of your potential buyers will see your house within the first four to six weeks of listing the property? If you don't “sell” them on the home during that timeframe, it will be approximately three months before an equal number of newcomers have looked into buying your home.
You'll Lose Market Interest and Qualified Buyers. Serious buyers use the value, quality and price of similar properties as deciding factors.
A Negative Impression is Created. As weeks pass by, prospective buyers
will wonder why your overpriced house is still on the market - they'll believe something is wrong with your home, before even coming to view it.
You, as Seller, Run a Risk of Losing Money. You may have to make extra mortgage payments, in addition to incurring taxes, insurance and unplanned maintenance costs.
You, as Seller, May Have to Accept Less Money. Historic market trends show that the longer a house is on the market, the greater the discount off the list price when a sale is finally made. Often, a seller will accept less than fair market value, in order to sell the home prior to a quickly approaching deadline.
There is Potential for Appraisal Problems. The appraiser from your buyer's lending institution must agree that the home is worth the asking price. If the appraiser believes the price is inflated, the requested mortgage amount may not be approved.
Find Out What Your Home Is Worth
For a current market analysis of your home, the best option is to take advantage of a Free Home Evaluation. A licensed Ontario REALTOR® can point you in the right direction and provide you with details on how to take advantage of this valuable tool for property sellers.
Want to know more?
If you’re looking for the very best advice and expertise on home pricing, you should not hesitate to contact a qualified real estate sales representative with a strong knowledge of the Greater Toronto housing market. To get in touch with our team of sales representatives and brokers at Living Realty, CLICK HERE.