In the extreme seller's market that is currently Toronto, it is easy to assume that selling a property is as easy as a sign on the lawn and a price in mind. If your thinking is along these lines, this is where I say to you: hold up! There are many listings that don't sell in Toronto. Surprising perhaps, but true nonetheless. And there is really only one reason why they do not: price.
With price being the bottom line to any sale, no matter what market, it is worth wrapping your head around it and finding a Realtor who is excellent at this critical part of the job. Getting the price right the first time will ensure a solid offer (or several) without scaring your best buyer away. It is without a doubt, the single most important choice you can make as a seller. So what is involved?
Your price not only reflects what you will accept. In Toronto, it more accurately equals your marketing position relative to your current competition. Your price is not only based on local relevant comparables, which are neighbouring, similar properties, recently sold. It is also based on interpreting the priorities of the current buyer and the other properties they are looking at while considering yours. Based on what this research reveals, the solid number presented is still in a relative fluid state, since outer forces to the value of your property can change in a day.
WHAT PRICE IS NOT BASED ON
If any of the ideas below are creeping into your price logic, shelve them. Price is not ever based on the following:
- What you paid
- What you put in
- What you need
- The cost to rebuild
DEFINITION OF MARKET VALUE
What price is based on however, is fair market value, which by definition is:
The most probable price (in terms of money) which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue influence.
Contact me for a current market evaluation if you are curious about your property's value.