Pricing strategies for selling your home can vary based on market conditions, your goals, and the property itself. How do we do it?

Firstly we start with a Comparable Market Analysis (CMA): Conduct a thorough analysis of recent sales of similar properties in your area (comps). This will give you a benchmark for setting your home’s price.

Here are some common pricing strategies to consider:

1. Price Below Market Value: Pricing your home slightly below market value can attract more buyers and potentially lead to multiple offers, driving up the final sale price. This strategy works well in seller’s markets or when you want to sell quickly. This is the most common strategy in larger markets like Toronto or Durham. Recent stats show that about 60% of homes are selling above asking price which is a result of this strategy.
2. Price at Market Value: Pricing your home at market value is a safe approach that can help ensure you’re not leaving money on the table. It can also attract serious buyers who are looking for fair deals. This is a more common strategy in slower markets or in the Luxury or higher value category. In the high value market it is unreasonable to expect that buyers will make snap decisions and participate in bidding wars.
3. Price Above Market Value: Pricing above market value may leave your home sitting on the market longer, but it could result in a higher final sale price if you find a buyer willing to pay more. However, be cautious as overpricing can deter potential buyers. This is an outdated strategy in my opinion. It results in your home sitting on the market for an extended period. In busier markets this strategy can backfire as the house appears to be sitting on the market which creates doubt in potential buyers.

More Tools in the Toolbox when selling:

Selling your home is a dynamic process. You need to keep watch of the current market, track your competitors (other listings in your area) and be ready to make needed changes to strategy and price.

1. Incremental Price Reductions: If your home isn’t attracting offers, you can start with a higher price and gradually reduce it over time until you find the right balance between attracting buyers and maximizing profit.
2. Targeted Marketing: Tailor your marketing efforts to highlight unique features of your home that may justify a higher price, such as recent renovations, energy-efficient upgrades, or a desirable location.
3. Consult with a Real Estate Professional: Ultimately, consulting with a knowledgeable real estate agent who understands local market trends and buyer behavior can help you choose the best pricing strategy for your specific situation.

Remember, it’s essential to strike a balance between pricing your home competitively to attract buyers and maximizing your return on investment.

Steven Greenidge is a Durham based Broker / Realtor with Remax Millennium serving areas the GTA and Waterloo Region.

“When purchasing your home contact me. I work in Oshawa, Whitby, Ajax, Pickering, Clarington, Toronto and the GTHA”