Pricing Your Home

Pricing your home is both an art and a science. Achieving the optimal price is the result of both objective research into comparable properties and a gut feeling about your property and the current market.

The right price should:

  • Attract buyers
  • Allow you to earn the most money possible
  • Help you sell in your desired timeline

The simple fact is, price is the number one factor that most homebuyers use to determine which homes they want to view. And it's important to remember that, although the price is set by you, the value of the home is determined by the buyer. Try to avoid allowing your enthusiasm to impact your better judgment - overpricing is a common mistake that can cost you in the end.

The Importance of Proper Pricing

  • Faster sale and less inconvenience around showings and navigating schedules 
  • Exposure to more buyers
  • Increases Realtors® response because they're looking at new properties daily and sharing them with Buyer's
  • Generates more excitement with all Buyer's and their Agents
  • Attracts higher offers
  • It is statistically proven to put more money in the Seller's pocket 

What really matters is how your home stacks up against the others currently offered for sale and recently sold in your neighborhood. Buyers will be comparing, and that's why our communication is ongoing throughout the duration of your listing. 

Common Reasons that Seller's Overprice 

  • Paid too much for a renovation or improvement
  • "Need" more money out of your sale for your next chapter
  • Paid too much in different market originally 
  • Because one of your neighbours sold at a higher price so you're ignoring factual data
  • Bargaining room can not be predicted 
  • Move isn't necessary
  • Assessed value
  • Emotional attachment
  • Opinion of family and neighbors

Dangers of Overpricing

  • Most of the activity on your home will occur in the first few weeks. Pricing a home properly and then creating immediate urgency in the minds of agents and buyers is critical.
  • Buyers who have seen most available homes in their price range are waiting for the "right house" to come on the market. That's why if a house is priced right, it will sell quickly. The buyers are there waiting for it.
  • Don't start with a high price and the assumption that you can reduce it later. By the time you decide to lower the price, it may be too late, as interest will have already disipated.
  • A major cause for concern is appraisal problems; overpricing can lead to loan rejections.
  • Even if your home is nicer than other homes in the same area, your house won't be picked for viewing if you set the price too high.
  • Buyers and agents become aware of the long exposure period and often are hesitant to make an offer because they fear something is wrong with the property.
  • Attracting the wrong buyers.
  • Fewer potentially qualified buyers will respond.
  • You might help sell similar homes that are priced low.
  • You could lose money as a result of making extra mortgage payments while incurring taxes, insurance and unplanned maintenance costs.

Our Role of a Real Estate Agent in Pricing

  • Provide you with a comparative market analysis (CMA), a comparison of the prices of recently sold homes that are similar in terms of location, style, and amenities. A CMA is performed by comparing previously sold homes in the area, and currently active homes to know your competition.
  • There is no "exact price" for real estate
  • We don't tell you what we think your home is "worth". We tell you what your home should sell for in the current market.
  • The market determines value…together we determine the price!
  • We will keep in touch with market trends and keep up to date with market activity of comparable homes.
  • Estimate your net proceeds.

An agent has NO control over the market, only the marketing plan. We highly suggest not selecting an agent based only on price.