Setting Your List Price Requires Calculation and Market Savvy - Sherille Layton

Setting Your List Price Requires Calculation and Market Savvy

14 December 2018
Sherille Layton

When you're having a garage sale, one of the toughest tasks is pricing your items. If you put a price tag on your old golf clubs that’s too high, no one will buy them. If you make the price too low, they might sell too quickly, but you’ll spend the rest of the day wondering if you could have gotten more!  

In some ways it’s similar to selling your home — except with your home, the stakes are much higher. You want to price your property to sell, but you don’t want to leave any money on the table at the same time.

As a Realtor it is our job to work with our clients as a team and advising clients the best possible strategy when setting list prices.  We may have discussed a few strategies but often timing can be a crucial part of the process.

Setting the right list price for your home requires a combination of skilled calculation and industry savvy. 

Let's start with the "calculation" part...

When you work with me, I'll review recently sold properties that are similar to yours in type, size, features and location. Then, using that data, we’ll calculate a range that represents your property's "current market value."  

Being that the Toronto real estate market is so quick paced, sometimes setting a price can only be determined just before listing the home.  This can be nerve wracking for Sellers, keeping everyone calm is another necessary skill going into the listing process.

Also, this data is sometimes not easy to come by, maybe a similar home in the area has not sold for a few years.

Consider a spacious 15-year-old bungalow in a nice neighbourhood. If similar homes in the area have sold for $1,000,000 to $1,500,000 in the last six months, then it's obvious that your home should sell in that range too. Setting a list price above or below that range would be highly risky, especially as buyers’ in our market are so well educated.

But skilled calculation is only half the task.  It often comes down to industry savvy as well.

Setting your list price also requires expertise within the local market, combined with good old-fashioned gut instinct. That instinct comes from being on the front lines of many property transactions and years of experience. Constantly educating oneself with market knowledge and current market conditions.

That's why working with a professional and skilled real estate salesperson is so important, when you’re deciding the list price for your home.