The home pricing strategy you select to sell your home by will be what determines its price.

While Etobicoke homes have high demand, where you set the price for a property you are selling will attract clientele, determine what offers you receive, and more. Price too high and there’s a risk your home will remain on the market for longer than it needs to. Price too low and there’s the likelihood of not collecting all the money you could potentially for a property.

If you can determine the right listing price for your needs, you turn up the volume for the best selling scenario to unfold.

Price Below Market Value

Rarely would you price below market value, unless the market conditions dictate it. If you’re in a declining market where there is more incentive to sell quickly than to wait it out and profit less as the market continues to fall.

While one may think pricing below market value, it can also mean some buyers could assume something’s wrong with the property. It could reduce the amount of offers you receive if there’s not clear reasoning as to why a home is priced below market value.

Should you go this route, never price your home too low. Ensure you stay within a reasonable price window.

Priced Neutrally At Market Value

A neutral pricing strategy is when the market has similar supply and demand, and your home offers strong value.

The ideal home for a lot of homebuyers is a home in a great neighborhood, renovated, with unique features, and with income-generating potential, such as the ability to rent out a basement. A neutral pricing strategy attracts those buyers and is a sure way to communicate you’re selling at a fair price, often resulting in a quick sale.

For this to work, it’s imperative a seller connects with a real estate agent who can enact a strong marketing plan to get your property out there in front of leads.

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Priced Above Market Value

In some Toronto neighborhoods, we see homes priced above market value. While this may seem counterintuitive and like it’s only going to reduce the offers you receive, it’s done for several reasons. Most often, it’s a seller who is overly ambitious and believes their home is worth more than it actually is or an inexperienced realtor who does not understand pricing strategies.

A ‘priced above market value’ strategy is most likely to hurt you. It’s not enough room for a potential buyer to negotiate. It may automatically disqualify you from a lot of buyer searches.

It also increases the likelihood that a home will remain on the market for an extended period of time which after 2-3 weeks, most buyers will likely disregard the property altogether believing that there’s something wrong.

How To Determine Market Value

To determine market value, there are many factors that come into play that a realtor can aid you in calculating.

  • Location of your home in proximity to amenities.
  • Condition of the property and if it’s been adequately maintained.
  • Style and design.
  • What comparable homes have sold for in the prior 90 days.
  • What comparable homes are currently listed at.
  • What homes have not sold in your local market.
  • Perceived market conditions, i.e. supply and demand.

Connect with a realtor who knows how to price your home to sell for top dollar. How you list your home is an art and a science. Adrian and Andrea can help in figuring out the determined market value and what the best listing strategy is to sell your property. Reach out to us for a conversation and consultation on pricing.

Call us today at (416) 319-6893 or email us directly at info@adrianandrea.com to learn more.