When you want to sell your Toronto real estate you want a to get a price that covers your expenses and brings you profit. However, introducing the home to the market at a high price with the game plan to reduce the price if it does not sell will not ensure you get fair market value. Toronto real estate Agents and home buyers are well educated and fully aware of what your home is worth even if you are not. You may want to price it so that you get some profit but if that is not inline with fair market value than it is highly unlikely that your property will sell at that price.
A good real estate agent should be able to tell you what the right price is based on the fair market value of the property. This should be backed up with solid research. You should be very careful when selecting an agent; don’t pick the agent just because they promise you the highest price. Unfortunately that is often used as a trick to just win the business. Then when your home sits on the market they will push for a reduction and often you have to reduce the price below its fair market value to get buyers attention. You want an agent that provides a realistic price and can back it up with comparables in the area and other research.
There are many items that will impact the price of you home; location, size, and condition of your house will have the greatest impact. The exact same house could sell for hundreds of thousands more in one neighbourhood as compared to another.
Most people are tempted to try out a higher price first, deciding to lower the price in the eventuality that it does not sell. A good Toronto real estate agent will not use this tactic. The disadvantages are manifold, but bigest disadvantage is that you will most likely have to reduce the price below the fair market value to get any interest.
The first three weeks after the house comes to the market is the best time for it to sell. Since it is new, prospective agents and their clients, will be on the lookout for it. People who know of others looking for an home with a similar cost and location will also often spread the word. Be it the media or through interpersonal communication, the initial word about the availability of your home reaches most people during this time. However, on closer inspection, if people find that the house is overpriced, they will steer clear of it. Not only will you not sell your home but you will make the other comparables on the market look even more appealing, which will help them sell.
Once the initial flurry of inquiries about your house dies down, a poorly priced asset will have a really hard time selling. Since it has been in the market for an extended amount of time, prospective customers will start to suspect that it has got something wrong with it. Additionally, cost cuts at this stage to renew buyer interest will almost always raise questions about the quality of the home. Once you, start to get plagued by these issues, selling the property for even fair market value is difficult.
Knowing the point of view of the customer will always help you out when pricing the home right. No serious customer will ever go beyond his or her budget, which is carefully calculated. Often this number is rounded off to the nearest $10,000 mark. So it is important to keep this in mind that someone’s whose ceiling is $1,500,000 will often set that amount as their top bracket for their search. So if your home is sitting at $1,501,000 they may not even get to see your listing as it fall outside their search parameters.
In light of all this, it is important to choose the right agent who can price your home properly at the start. Be careful hiring the Agent who promises you the moon. When it comes to Agent selection the price they promise they will get should not really influence your decision.
