When a seller needs to sell their home, they need to price it accordingly and be willing to listen to what’s going on in the market.

There has been a stalling of the Toronto real estate market in part because of sellers who are not motivated to adjust their prices to attract buyers. Those that are willing to accommodate buyers, however, with a lowered asking price are seeing the benefit of being able to sell their property quicker and more easily.

Here is a look into why and when a seller should drop their asking price, based on current conditions.

Why Real Estate Sales Have Slowed

Real estate sales have slowed down year-over-year due to several factors. High borrowing costs. An uncertain economy and unpredictable inflation rates. Record unaffordability. Strict mortgage rules for homebuyers. More choice in the market and more properties on the market.

Some Sellers Have Already Lowered Their Asking Price

A seller who does not have time to wait for the right sale may be inclined to lower their asking price. Many already have. Price data shows us that properties across several GTA neighbourhoods have seen their asking prices lowered to pre-pandemic pricing.

Why Lower Your Asking Price If You’re A Seller

As hinted at, most sellers don’t have it in them to watch and wait. They want to sell today and move on. There are also less motivated buyers in the Toronto real estate market today, though they do exist, meaning that an attractive asking price can certainly net you the attention you’re craving as a seller.

Where Is Real Estate Headed Within The Next Twelve Months

Mortgage rates are set to lower. The population in Toronto is still on pace to grow at a higher rate. The demand for properties will increase, likely to spur renewed growth in home prices but potentially not within the next twelve months.

Want to sell your home for the highest possible price and quickly? Click here to read our 9 tips on how to sell your home fast in Etobicoke.

How Long You Can Wait To Sell Your House Matters

As interest rates may or may not come down within the next year, a seller may wish to wait. In many cases though, a seller may not feel particularly inclined to wait especially if it means having to pause what’s going on in their life, not being able to move on to their next chapter, and the like.

More Reasons To Drop Your Asking Price

  • If your property has been on the market longer than average for your kind of property in your neighbourhood, it may be time to drop your asking price.
  • If you’re a seller extremely motivated to sell with little time to show the property, negotiate, or invest, lowering the asking price is sure to get attention.
  • If the property requires renovations or there is something wrong with the house that could prevent a quick sale, a lower-than-expected average price can be offered as a way to entice buyers while acknowledging the required repairs.

Ultimately, if your property has been on the market longer than expected, you’re motivated, and the property is properly positioned with the right marketing, dropping your asking price can help you catapult yourself into a sale.

For more information on how to find the right asking price for your house, contact the team at Adrian + Andrea today. Call us at (416) 319-6893 or email us at info@adrianandrea.com.