When it comes to Greater Toronto Area Real Estate, I know what sells and what doesn’t… and often when a property doesn’t sell, the reason is price. Correctly pricing your home is the single most important factor in preparing your home for sale.
Many homeowners are surprised to discover that pricing makes up 75% of the marketing of their listing. This is due to the fact that in most cases, price is what attracts potential buyers to a listing in the first place.
With that in mind, the internet has opened a wealth of information on property sales history and data, so buyers are better informed now more than ever. Some search for months, scouting potential home candidates based on their features, location, and – you guessed it – price.
Buyers know when a home is priced fairly, and will make a decision quickly whether it’s worth seeing or not. Since it’s critical to get it right, here’s a look at my top pricing strategies for 2021:
Pricing Strategy 1: Price at Market Value
This is the safest strategy to get a good price and sell quickly. To determine the market value of your home, here are just a few of the things that I consider:
- comparable listings on your street and in your neighborhood;
- recent sales of similar properties in your neighborhood and ones nearby
- current market conditions;
- the finishes, condition, and size of your home; and
- its location – what’s happening in your area now and what’s expected to change in the foreseeable future.
Pricing Stratergy 2: Set Price Below Market Value And Hope To Get Bidding War
This can be an effective way to generate enough interest in your home that multiple Buyers want to make an offer on your home, thus driving up its price.
PROCEED WITH CAUTION…
Pricing your home below market value with the intent of getting multiple offers is primarily effective in a Sellers Market and when there is a limited supply of your type of property for sale.
This strategy may work well for a detached house in a great neighborhood, but may not necessarily fly in the condo market where there is ample supply. Rest assured that I will guide you in the appropriate direction when considering this pricing strategy.
A Horrible Stratergy: Price Above Market Value And Pray
There’s plenty of evidence out there that proves that properties that sit on the market because they are priced too high end up getting a lower price than they would have, had they priced at market value.
A home that’s priced above market value will be overlooked by qualified buyers because they recognize they can get better value elsewhere.