Have you heard about that condo with the unusual asking price? Of course you have not. The wrong list price will generate radio silence – the worst kind of publicity. Some homeowners have pride and sentimental attachment to their current home which can incentivize them to price their home for a higher value than it deserves. If history has taught us anything, however, it is that testing the market so you can have a few extra thousand dollars does not always yield the results you wish it to. When it comes to selling your condo, you will need to follow certain pricing strategies in order to ensure your home has the highest chances of receiving offers – especially offers you would be happy to accept. Here are some tried and tested strategies I have picked up along the way when selling condos.
Base Your Price On Comparables, Not Emotions
When it comes to selling some expensive items such as cars, there are guides and books to turn to in order to determine its value. The real estate market does not have such pricing guides because property values are hyperlocal and always shifting. One 1+1 condo in Toronto 760 square feet could be double in value in a different part of the city. This is why real estate agents rely on comparative market analysis, also known as comparables or comps. When your real estate agent looks at comps, they are putting your condo side-by-side other recently sold condos that are similar to yours based on location, size and condition. This will give you an excellent indication of how much value your home actually holds financially, rather than the emotional attachment you may have built for it.
Pricing Strategically Can Lead To A Bidding War
When selling your condo, you aim to get the highest price possible. One of the ways this can be achieved is through a bidding war – where multiple people are interested in your condo and they are willing to offer above asking to lock down the condo. Underpricing your home in order to elicit a bidding war is something that requires a lot of experience and strategic skill – only do this if you have consulted and landed on the same page as your real estate agent. This will not work in every situation, but if you are in a seller’s market, you could very well start a bidding war by pricing it just below what your condo is worth!
Consider Online Pricing Benchmarks
It is a truth universally acknowledged that 90% of condo hunting begins online. Most real estate websites have filters to help potential homebuyers find exactly what they are looking for. One of the most important filters is price. The vast majority of homebuyers set their minimum and maximum prices in benchmarks of either $25,000 or $50,000 dollars. Therefore, if you want your house to be seen by someone in a particular benchmark, consider these online filters.
These are just a few pricing strategies when it comes to selling your condo. If you are thinking about putting your condo on the market and would like some additional insight, please reach out to me here. I would love to impart all my knowledge with you so that your home is priced in the best way possible.