ReMax Community Inc., Brokerage

(416) 287-2222

Pricing Your Property Right and the Market Value of Your Home

The single most important decision you will make with your RE/MAX Community Sales Associate is determining the right asking price for your property.

Once you've achieved a realistic sales price, you can count on your property being professionally marketed and promoted to bring more buyers to your door. You can also expect to sell your home for the best possible price in the lease amount of time.

The Benefits of Pricing Right:

  • Your property sells faster, because it is exposed to more qualified buyers
  • Your home doesn't lose its "marketability."
  • The closer to market value, the higher the offers.
  • A well-priced property can generate competing offers.
  • Real Estate Professionals will be enthusiastic about presenting your property to buyers.

Market Analysis

  • How will the Current Market Situation affect YOUR sale?
  • How much you sell your house for, and how quickly you sell, depends on local market conditions:

Market

Behavior

Consequences

Buyer's

More homes on the market than buyers. Lots of competition from other sellers

Prices drop. Houses take longer to sell.

Seller's

Lots of buyers. Not that many houses for sale

Prices increase. Homes sell quickly.

Balanced

The number of homes on the market is equal to the number of sellers

Homes sell within an normal time period. Prices are generally stable.


How To Price Your House Right

The single most important factor to consider when selling a house is the home price tag: how much your house is worth. You don't want to overprice the house because you will lose the freshness of the home's appeal after the first two to three weeks of showings. After 21 days, demand and interest wane.

On the other hand, don't worry about pricing it too low because homes priced below market value often will receive multiple offers, which will then drive up the price to market. Pricing is all about supply and demand. It's part art and part science, and no two agents price property the same way.

Overpriced Homes:

When the average seller sits down to interview real estate agents, it's easy to get caught up in the excitement over choosing a sales price. More money means more financial opportunities for the homeowner. Perhaps it means the seller can afford to buy a more expensive home, help pay for her child's college education or take that greatly overdue vacation.

Unfortunately, uninformed sellers often choose the listing agent who suggests the highest list price, which is the worst mistake a seller can make.

Market Value:

The truth is it doesn't really matter how much money you think your home is worth. Nor does it matter what your agent thinks or ten other agents just like him/her.

The person whose opinion matters is the buyer who makes an offer.

Pricing homes is part art and part science. It involves comparing similar properties, making adjustments for the differences among them, tracking market movements and taking stock of present inventory, all in an attempt to come up with a range of value, an educated opinion. This method is the same way an appraiser evaluates a home. In other words, there is no hard and fast price tag to slap on your home. It's only an educated guess and the market will dictate the price.

Is it Too Low?

Homes sell at a price a buyer is willing to pay and a seller is willing to accept. If a home is priced too low, priced under the competition, the seller should receive multiple offers to drive up the price to market value**. So there is little danger in pricing a home too low. The danger lies in pricing it too high and selecting your agent solely on opinion of value.

** The price at which a bona fide seller is willing to sell and an able and willing buyer is willing to buy. Generally speaking, the value is close to what similar homes have sold for within the past few months.

Contact a RE/MAX Community Sales Associate now for more help on how to price your property right.

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RE/MAX Community Realty Inc., Brokerage
Independently Owned and Operated
1265 Morningside Avenue, Suite 203 Phone: (416) 287-2222
Toronto, ON M1B 3V9, Canada Fax: (416) 282-4488
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