Pricing Your Home Correctly

The absorbtion rate is rising (sales vs inventory available) but we still have a high number of listings in our marketplace. This presents stiff competition for you if you are a Seller. Certain price ranges are more difficult than others. Each property’s price has a trigger point and  Buyers are almost always interested in pursuing a property if they can see solid value at the asking price. Over and over again I see even small price reductions create more interest from Buyers. It is accurate to say that reducing the price to be very close to the current market value is what creates more showings and offers.  If a Seller insists on a higher price on their property but tells their Realtor to “bring an offer” the Seller usually sees little or no activity on their listing. I also believe the way in which  Buyers look for properties has a big influence. Buyers use various real estate websites, like www.realtor.ca and they put in their various search parameters. They usually enter in the neighborhood they want to be in, the number of bedrooms/bathrooms and their ideal price range. As soon as they choose that price range they are eliminating viewing properties priced in the next higher price category. A Seller asking even one price range too high can just get passed by. This is why we should be asking a price close to current market value. Current Market Value is the price Buyers have been paying for comparable properties which have been exposed to the marketplace for a reasonable length of time. We have been seeing a fair number of Buyers this Spring and Summer  which means a Seller does have a reasonable opportunity to get their property sold. However, as the market remains so competitive, it is very important that the list price be the “right” price. If your property is listed for sale, your Realtor should be reviewing the comparables every month or so just to be sure your home is positioned to sell. That way you are less likely to see your competitors get sold instead of yourself.

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