Determining the Price of Your Mississauga, Toronto or Brampton Home
There are several strategies that Realtors® use to determine the appropriate price to list your GTA home. Most people who sell their home want to get the most money from the sale, however by pricing your home too high it will cause buyers to lose interest and sometimes ignore your home. This will in turn cause your property to go “stale” on the market. Pricing your home too low may make buyers think that there is something wrong with the property. The best method to sell your home is to find the fair market value of your home and list for that price.
Highest Price Analysis
This is a comparable market analysis (CMA).Realtors pull comparable listings and sales in the neighbourhood to get the best information on what is happening in the current market. When looking for comparable homes, Realtors use similar sized homes from the same neighbourhood. They compare expired (homes that did not sell) and sold listings, review the days on the market and any price reductions that may have occurred and also review active listings in the neighbourhood.
Right Price Analysis
This takes into consideration how quickly you want to sell your house, because how much time you have affects your asking price. It essentially determines the right price based on how quickly the sellers want to sell.
Absorption Rate Analysis
This takes into consideration the law of supply and demand in the current market. It determines price based on how many homes are absorbed by the market in the seller’s area every month.
Law of Supply and Demand
Buyers Market: Few Buyers – Many Listings
Lower Price, Better Terms, Longer Days on the Market.
Pricing is very dependent on the law of supply and demand. In a buyers’ market, there are very few buyers and a lot of inventory. To attract the attention of a limited buyer pool you need to lower the price and give better terms or sellers must be prepared to have their house on the market for a longer period of time.
Sellers Market: Many Buyers – Few Listings
Higher Price, Fewer Terms, Shorter Days on the Market.
In a sellers’ market there are a lot of buyers and very few homes on the market, so this is the perfect world for the seller. The can ask for a higher price, offer fewer terms and their homes will usually sell more quickly.
Suggested List Price
The seller can do quite a few things to make their home more marketable. There are three ingredients for a sellable listing – the right price, the right terms and the right timing. You have to have at lease one of these ingredients in order to sell your property.
Pinpoint Price Analysis Request
Our FREE “Pinpoint Price” Analysis is where we take a close look at your house and prepare a very specific price for your home... and we guarantee in writing to sell your house at the “Pinpoint Price” or higher in less than 60 days.