Gary Doyle
Sales Representative
Realty Executives of Sudbury Ltd.
LISTING PRICE HOW IMPORTANT IS IT??
A couple of years ago Sudbury experienced a balanced real estate market, prior to this very active Seller’s market we are currently in. As a realtor, I would put careful consideration into the listing price of a property. We would review sold comparables, active listings and then adjust the price reflecting the pros and cons of the home. There was an expectation from Buyer’s and Seller’s that some negotiation often may result in an offer price lower than the list Price.
That world as we knew it has certainly changed over the past two years and the vast majority of sold properties are selling well over the list price. There continues to be much discussion about the listing price strategy throughout our industry. At the end of the day, it is the Sellers decision that sets the list price. Here are the 3 options that are happening in today’s market.
List Price Well Below Market Value – the objective here is to make the listing appear like a great opportunity buy and as a result, the listing receives a lot of attention from buyers. However, these listings often sell well over the list price. This can be frustrating for Buyer’s who come to view the property and it sells for often +$100,000 over asking. On the flip side, as the seller, you are in the driver’s seat. You have the option of accepting or rejecting or negotiating with a buyer. So, if the “list price below market value” does not get you the offer you were hoping for, you simply don’t accept it. It can be very a time consuming and frustrating process for buyers. I have made many phone calls this last year to inform a Buyer that they did not get a property and that the sale price was $50-$200,000 more than their offer.
List Price At or Slightly Below Market Value – this is my preferred strategy to maximize the number of qualified Buyers to view the property and therefore increasing the opportunity for a competing multiple offer situation which maximizes the sale price. Buyers are very aware of market value and what it is going to take to acquire a home in today’s market. As they spend more time in the market, they come to understand that the list price is irrelevant and that an experienced Realtor will be able to provide sold comparables along with expert advise on how to best secure their next property.
List Price Too High – there are Seller’s that will insist on coming to market at the price they want or need to sell. Sometimes this strategy works in our market, but most times it results in a lower number of viewings and no offers.
Sometimes it is difficult to help a Seller understand the “best list price” is the one that gets as many qualified buyers through the door as possible. In our market, a qualified Buyer is prepared to move forward quickly with an unconditional offer to compete against all other offers.
In this market, you need the experience of a professional Realtor to get your property listed right to maximize the sale price. As well, be able to provide you with the key decision-making information to be able to, with success, purchase a home in this highly competitive market.
