It is essential that you price your home correctly based on the sold market comparable's in order to maximize your return on investment! We offer detailed analysis and a thorough understanding of the market.
It's a beauty contest and price war, we have to find the balance. We can put it on at a price that helps others sell, or we can put on at a price that helps yours sell. We've seen the other homes, we can show them to you if you’re interestedI can’t stress this enough, marketing your home 10% above market value to leave room for negotiating never works out in the sellers favour!
Make sure you look at:
- Months of inventory
- Stats - Buyer or sellers entire market vs your neighbourhood
- Are prices increasing or decreasing
Determining the right asking price is the most critical factor to the success of your home sale. As your chosen real estate professional, I will:
- Help you understand current market conditions and how they will impact your home's asking price.
- Prepare a market analysis to give you an appreciation of what comparable homes in your area have recently sold for.
- Assist you in understanding the marketability of your home's location, size, style and condition.
- Explain how pricing appropriate to market value will help make your home more marketable, exposing it to more qualified buyers while generating the best offers.
- Clarify the importance of capitalizing on the early activity associated with new listings by pricing your home appropriately when it first goes on the market.
- Help to create value and future negotiating power through chattel inclusions and exclusions.
- Work with you to develop a pricing strategy and determine an asking price that will sell your home in the shortest amount of time at the best possible price.
IMPROPER PRICING OF A PROPERTY:
Pricing at or near market value will always make a property easier to sell and within a shorter time. The fact that a house sells quickly does not mean that money has been left on the table if all the research has been done and the marketing has alerted potential Buyers to the property.
Speak to an agent who is honest when it comes to price. You do not want to pick someone who over promises a price and cannot deliver. What happens all too often is a homeowner will consider two or three agents. They likely select the agent who tells them that their home is worth the most, rather than the more accurate number. The home will sit for 3-6 months and that agent will likely try and have the homeowner reduce their price to re-stimulate the property. Given the reduction in price and staleness on the market, potential buyer clients are left in the drivers seat, and feel they have the upper hand in negotiating. I've seen this happen to often. Find an agent who gets REAL results.
Most of the time It’s a beauty contest and price war, we have to find the balance. We can put it on at a price that helps others sell, or we can put on at a price that helps yours sell.
Pricing Do’s and Dont’s
Are you familiar with the contrast principle? Bottom line: Don’t be the set up house!
No. 1: The real estate market is like the stock market
When sellers purchase their property in a heated market, it may be years before they can recoup their previous purchase price plus their cost of sale. Nevertheless, many still believe that when they list their home for sale, their price should be based upon their acquisition costs. This belief leads to extended listings, and frustrated sellers. THE MARKET DETERMINES THE PRICE, We analyze it to provide you with the right information to allow you to make the most informed decision
No. 2: Your house has to qualify
The house, not just the buyer, must qualify for the loan. When your home falls within the 80th percentile of GTA homes, your purchaser is more than likely going to be paying 20% down or less for the home. This being said the bank will only loan the purchaser the money if the valuation is correct or within the realm of correct. The purchaser may remove the home finance condition within the 5 day period, the bank may do the appraisal 2 weeks prior to closing, if they do not agree with the price the purchaser would be on the hook for the difference of what they paid and the banks appraisal amount. If they cannot come up with this money then the deal would default and your (homeseller’s) future plans would have a major wrench thrown in
No. 3: Are you in the X percent that will sell this month?
The rate of absorption (how quickly properties are turning over) or MONTHS of inventory, is pertinent to the success of your sale! If you want to sell in a given month, you must be in top tier of properties by both value and price in that location.