How to Price Your Etobicoke House Realistically

There are quite a few factors that go into successfully selling a house. Most homeowners focus on what is most tangible to them, like improving the appearance of their home to impress potential buyers. Not that this is a bad thing. Mind you, presentation is critically important, especially during times of high inventory or buyer hesitation. In fact, presentation is one of the three Ps of selling – presentation, price, promotion.

Once your house is prepared to dazzle, an effective plan to promote it also makes sense. Who cares how fantastic your home looks if no one knows it’s for sale, right? So far, everything is perfectly logical. What trips many people up is the pricing aspect.

Unlike presentation and promotion, coming up with a logical price point is more difficult. Market conditions can change from one day to the next, so it seems there’s nothing concrete to base your home’s value on. However, if you want a fast sale for the highest amount possible, getting the price right is arguably the most critical aspect of all. In this post, we’ll explore how to price your home realistically in today’s market.

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Why Accurate Pricing Matters

Real estate prices are essentially a tug of war between the seller and the buyer. The seller wants the highest price possible and the buyer wants to pay as little as possible for the best house they can get. Who gets the better deal primarily depends on the market itself, but there are ways you can set yourself up for success.

A price that’s too high will get very little attention from real buyers. They will move on without giving your listing a second thought.

A price that’s too low can backfire in several ways. The most likely scenario is that your house will sell but you won’t earn as much as you deserve. Or buyers might be scared off entirely, thinking that the low price is due to a stigma or problem with the home.

In either of the above situations, you fail to fully maximize the value of your transaction. The right price is the one that appeals to buyers while still reflecting the value of your home. Generating extensive exposure and interest helps your listing stand out from others in your area. If your home attracts the attention of multiple buyers, you stand a better chance at getting top dollar.

Pricing is a huge factor in a successful sale, but it’s not the only consideration. Here are some other tips to help you sell your home:

• What Are The Fastest Ways To Add Value To Your Home When Selling?
• What to Look For in a Real Estate Agent When Selling Your Home
• Can You Earn More Money By Staging Your Home?

Begin With Realistic Expectations

Unrealistic expectations are the most common pitfall homeowners fall into when listing a home for sale. Letting go of the place you have lived in for many years can be an emotional experience. If you’re not careful, these feelings can cloud your judgement when it comes to how much you think your home is worth in the current market.

As much as you love your house, sentimental value doesn’t have any impact as to how much your house will sell for. The only thing that matters is how much a qualified buyer can and will pay, and this amount will change depending on the market.

These ups and downs can cause a lot of confusion, especially when a previously hot market begins to cool. Imagine getting a home evaluation a few months ago only to discover that values have dropped across the board. Now you stand to earn tens of thousands of dollars less from your sale – which is understandably frustrating. However, it’s important to keep it all in perspective.

• If you do everything else right and earn less from your sale due to a slower market, you’re still in a good position. When prices are down across the board, your new home will also cost less.
• You might earn a record breaking amount in a hot market – but remember that it’s likely that you’ll be in competition when buying your new house. This could mean paying more.

The key is to earn the highest amount possible while buying and selling in the same market. If an advantageous market means you are lax about presenting your home beautifully, the house will likely still sell. You just won’t make as much as you could have, which now leaves you at a disadvantage when searching for your new home. But if price, presentation, and promotion are all on point, you can still maximize your sale and empower your next move.

Getting to know the market will give you a massive head start when listing your home. Learn more in What Is Going On In The Etobicoke Real Estate Market Today?

What Is Happening in the Market Right Now?

Realistic expectations and accurate pricing begin with a thorough analysis of what is happening in the market right now, this instant, as you prepare your home for sale. What happened a year ago is irrelevant. Even what happened a month or two ago might as well be ancient history.

Current conditions are the only consideration when deciding on an optimum price point. A local real estate agent active in the market can help you understand the latest trends and statistics and what they mean for your listing.

• Is it a high inventory market or are houses in short supply?
• How many buyers are currently searching for a home like yours in your neighbourhood?
• How much are houses like yours selling for?
• Are there any outside economic factors or upcoming developments that could impact the desirability of your home?

Once you and your real estate agent have assessed the market, you can turn your attention to your home itself. A comparative market analysis will take into account the age, size, location, number of bedrooms and bathrooms, and other physical attributes that will affect how much a qualified buyer will be willing to pay.

Looking for even more background knowledge to make you a savvy seller in today’s market? The resources below will help get you there:

• Real Estate Jargon-What It Really Means
• Know the Real Estate Cycles and Hack the Market
• My House Didn’t Sell. Now What Should I Do?

Can You Increase the Value of Your Home?

What are your options if the results from the home evaluation turn up a price range you don’t like? Remember that to a large extent , it is driven by the market. You simply can’t command the same price during a slow buyer’s market as you would in a hectic seller’s market.

However, there are often many minor improvements you can make that will offer a substantial return once the offers start coming in. Thorough cleaning and decluttering sets the foundation, and we are often surprised at how many homeowners skip these simple steps! A fresh coat of paint throughout can also add to the perceived value of your home. Plus, there are subtle nuances to be aware of.

If you spend $5,000 on repairs, you want to see a profit from your efforts. However, that return on investment is sometimes intangible. For example, maybe you just break even or walk away with a modest profit. The benefit here is a faster and less stressful sale, which means you can move on to the next step sooner rather than later.

Getting the best results from your sale depends on having clear goals of what you want to achieve, and then creating a plan of action aligned with the current market. As always, an experienced real estate agent can guide you through the process and help you make your sale a success.

Are you looking for ways to optimize the sale of your home during a challenging market? Our experienced Etobicoke real estate agents can help. Reach out to contact@thompsonsells.com or call 416-450-5900 to talk about your next steps.