How to price your house most effectively under current market in Toronto
Saturday Sep 28th, 2019Share
We all know that the market today is very different from what it was two years ago. Buyers are more rational in purchasing houses today. There are also many options on the market for buyers to choose from. Given that the affordability of housing in Toronto is weakened by numerous governmental policies, this situation will not change any time soon. If a seller still wants to sell a house at the price he could have sold it for in the past, he will be very disappointed.
So what does the current market look like? It is more balanced in parts of Toronto, Markham, Richmond Hill, and Vaughan if the price tag is lower than or around 1M. There are still many active buyers who want to buy a house in the next 12 months but also want a good deal. It is essential to understand the buyer’s thought process to outperform other houses in the same community. Nevertheless, the seller may say ‘I am not going to devalue in a tradeoff for fast sale’. That’s fine! We always see a house with a unique feature that can sell fast and at market price. But what if your home is average? Then optimal pricing is critical to selling your house fast at a reasonable price.
Many buyers ask Alan Zheng what will be the optimal pricing. Many sellers will set their house prices by comparing them to neighbors who sold recently. If the house has more bathrooms, better conditions, or a finished basement, the seller will add up the value to derive a higher price. This strategy is reasonable at a stable or steady improved market. But on the current market, such price will not outperform neighbourhood listings. To be competitive the seller should consider pricing equally or even lower than other houses in the same community. Even if your home has better features, if you desire to sell it fast, you can price it lower than other houses to make it more attractive to buyers. Buyers will feel that this is a better deal and urge to move forward. In some cases, you may attract multiple offers and still sell at a higher price.
It is critical to strike a balance between selling your house at an acceptable price or never selling. When there are many listings on the market, some will sell fast and others will stay on the market until the seller cuts the price several times. As an experienced listing agent in Toronto, I always advise my clients to price right to sell fast at an optimal rate. The first month is crucial to selling your house given that active buyers visit your property in that period. Afterwards an increasing number of bargain hunters will offer you low ball offers to damage your confidence. The result is that you will eventually sell lower than the market price.
The 5 Ps of marketing – product, price, promotion, place, and people – are key marketing elements used to position a business strategically. It is also highly applicable to selling houses. When selling a home, it is vital to consider the strengths and weaknesses of the house, the good and bad points of the community, the target ethnics who want to move in, and the corresponding staging to highlight the power of the house. And above all, optimal pricing will allow you to sell your home at the right price successfully.