How to get the best price for your home?

Wednesday, July 25, 2018 Written by Emmanuelle in Real Estate industry

When it comes to selling your home, the right pricing strategy is critical. Your asking price is the first number in a negotiation, so it’s important to get it right. When it comes to determining the market value of a home, I study the market of the specific neighborhood and will show it to my clients.

Pricing Strategy #1: Price Below Market and Hope for a Bidding War

Pricing low and setting a ‘bidding war date’ can be an effective way to generate a lot of interest in your home in the hopes that multiple Buyers want to make an offer on your house at the same time thus driving up the price of the house. BUT…this strategy doesn’t always work. This strategy is primarily effective when there is an under-supply of your type of property on the market.

Pricing Strategy #2: Price Above Market and Pray (negotiate)

We see houses and condos priced above market value all the time, and sometimes it’s a conscious strategy, and sometimes it’s just overly ambitious Sellers. There are 3 important things to keep in mind about this strategy:

1-A lot of Canadians (Buyers and their agents) don’t like to negotiate and are more likely to walk away from a home than risk insulting a Seller by putting in a low offer. Whether or not you agree or disagree with that thinking, the reality is that a high price may alienate some Buyers. Many of my clients did experience with me that I love negotiations, but not everybody likes and enjoy it…in order to start a conversation (negotiation) you need an offer!

2- Buyers are usually only excited about a new listing for the first few weeks.  There’s ample evidence out there that proves that properties that sit on the market because they are priced too high usually end up getting a lower price than they would have, had they priced at market value in the beginning.

3- Having your home sit on the market for an extended period of time can be really unpleasant if you’re living there. Your home has to be clean and ready to show at short notice.

Pricing Strategy #3: Price At Market Value

This is often the safest strategy to get the best market price and sell quickly. Getting guidance from a real estate expert who truly understands how to value a home and also understands all the other factors that affect a sale (staging, marketing, etc.) need to be in place. Remember: the price of your home is a moving target and the best pricing strategy will depend on who your target Buyer is, the time of year you decide to sell and what else is happening in the market at the time.

In conclusion a few words from Liz and Dave:   “Ethics, effort, and confident negotiating……We knew... you would conscientiously work to represent our interests. We saw this commitment in action when a potential buyer asked you to represent both parties and you helped direct him to another agent. We also appreciated support during the preparations and the guidance to select an appropriate listing date…..”  

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