How to Price Your Home to Get Best Price

How To Price Your Home to Get Best Price

How to price your home to get best price is not really intuitive. You’d think that if you list at a higher price, then you’ll get more. Right? I hear some real estate agents say that it does not matter how you price your home, the market will determine the price. Well this is NOT exactly true. If you price your home too high you may actually get less than if you had priced it correctly. Here’s why:

The Danger of Pricing Too High

1. High priced homes sit on the market for longer and become stale

Potential buyers think that there is something wrong with your home because it has not sold and not bid on it.

2. You may help sell your neighbours house

If your house is priced too high, your neighbour’s house may look more attractive

3. Your house has to appraise for the deal to go through

Even if someone agrees to overpay for your home, they may have issues getting it to appraise for the inflated amount and the deal will fall through. Banks are super conservative on the value they will put on your home.

4. The first week on the market is the most critical

With the shortage of listings in Toronto, there is a buzz around your home when it comes on the market. If you home is overpriced, the buzz will sizzle pretty quickly.

The Danger of Pricing Too Low

Pricing your home below market with an offer date was a well used strategy in the strong sellers market that we had for many years. Real Estate agents would price below market, hope to drive up the traffic of buyers and create a bidding war for your property. It worked for a long time in Toronto until the market softened. Buyers now have more choice and often look for properties that don’t have an offer date so they aren’t competing with other buyers on the purchase of their home. There’s s risk in pricing your home too low”

1.You leave money on the table and sell for less than you should

2. People think there’s something wrong with your house and don’t bid on it.

So there have have it. The best way to price your home is at market value. It has proven over and over again the right strategy to maximize the value that you get for your home. Needs a bit of help? We’re always there to provide our guidance on pricing. It really does matter.