Many home sellers ask us what homes are selling for in their area, because they want to use that information to help choose an asking price when they list their home for sale. However, choosing an asking price isn’t just about pricing the house or condo as high as possible to try and get the most money.
In a previous blog post we talked about strategies to get multiple offers. But before you can get ANY offers you must create interest in the ‘world’ of potential buyers for your type of property.
You don’t want to choose the price that you hope to sell at. You do want to choose the price that will generate the most interest from potential Buyers for your home. The most important thing to remember is it doesn’t matter where the offers start … it only matters where the negotiations finish. And if you’ve hired a top Agent, they should have the ability to utilize strategies to generate a lot of interest in your property, and also possess key negotiating skills to ultimately get the most money that the market will pay for your property.
The strategy depicted in this graphic is to price a home in the zone that will generate traffic. Nobody wants to give their property away. And the “art” of pricing your property properly can be as precise as only a 1%-5% differential.
As you can see in the graphic, you get almost twice as much interest from potential Buyers in a home when it is priced 5% below fair market value than if you priced it just 5% above. You get three times as much traffic when it is priced 10% below versus 10% above.
We keep saying that Toronto real estate is no longer about merely sticking a sign on your lawn and waiting for the MLS to find you a Buyer. In fact a part-time Realtor recently said (on our Facebook page) that anything sells in Toronto if you just stick a sign on the lawn. Well if that is true, then why is that between 38% – 43% (almost half) of listings on the Toronto MLS expire before the property actually sells? And … of the properties that do sell … why do some remain on the market for over 30 days and sell for 90% to 95% of asking price, while other properties sell in just days for over asking price?
If you want to know more about strategies that keep more money in your pocket, give us a call: (416) 414-0554!