Home Selling In Toronto

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Showings, Negotiations, Closing

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Showings, Negotiations & Closing

Determine Your Asking Price

Remembering how much you paid for your home years ago is not relevant to its current market value. In order to get an idea what your home is worth, you should your REALTOR® to prepare a so-called "Comparative Market Analysis" (CMA).

A CMA shows the prices of recently sold homes in your neighbourhood that are comparable to yours and the prices of comparable homes on the market. You can also purchase a professional appraisal, but that will cost you several hundred dollars.

Once you have a rough idea of what your home would be worth, it is time to think about setting the list price. All homes have a price, and sometimes more than one. Take for example the price you would like to get, the value buyers would like to offer and a point of agreement which can result in a sale. When setting your list price, consider the following factors:

Sales prices are a product of supply and demand.
The value of your home relates to local sale prices.
Your own needs can impact the sale value (for example if you must sell quickly).
Sale prices are not based on what you need.

Sale prices are only part of the deal.

Abandon your personal point of view. Buyers do not care how much you paid for your home, how many memorable moments you and your family shared in the home, or how much down payment you need to finance your new home.

Consider the market conditions. Are home prices in your area trending upwards or downwards? Are homes selling quickly or languishing? Will your home be on the market in the spring home-buying season or the dead of winter? Are interest rates attractive? Is the local job market strong? Is the economy hot or cold?

You do not want to set your price too low or too high. Setting too low a price means you could miss out on thousands of dollars that some buyer would have happily paid.

Setting too high a price can scare away willing buyers and leave your home on the market for too long. When you lower the price, people may assume you are under pressure to sell, and lower their offers even further.

Your goal is fair market value. “Market Value” is a term that simply means the maximum amount of money that interested buyers are willing to pay for your property. Remember, buyers comparison shop, especially for something as expensive as a home.

Watch out for sales people recommending an asking price that is far above what other REALTORS® are advising. You may have just met an agent engaging in a questionable sales practice called "buying a listing". However good it works as a short-term “sales tactic” in getting your listing, it is an extremely poor strategy in selling a home at the highest possible price. Setting the asking price too high leads to a property sitting unsold on the market and, ironically, even deeper price cuts down the line. It’s nearly impossible to replace the initial flurry of interest and activity a new listing will generate. REALTORS® in your area will want to see your home right away and tell their buyers all about it. If you price it too high, no one will show the house and it will sit on the market for some time. When you finally drop your price to reflect its real value, your house is “old news” and buyers may think you are growing desperate. Also consider that by setting your price too high, potential buyers who compare your home with other listings will be disappointed because other homes with the same price tag will look so much better. At the same time you are missing out on prospective home buyers who do not bother looking at homes priced outside their range.

Buying A Listing

Not a single REALTOR® can tell you in advance how much your home will sell for. He can only suggest an asking price that is thoroughly researched, and designed to maximize attention and profit for your home. But in the end it is you who choose the sale price and a buyer will tell you if that price is right.

In order to determine the fair market value of a property, a REALTOR® will not only prepare a CMA, but also take market influences and area specific trends into consideration. Above all, he should see the outside and the inside of your house with his or her own eyes. Not two property’s are alike. Factors such as curb appeal, home improvements, general maintenance, and interior can influence the market value dramatically.