Office: 519-787-7009
Coldwell Banker Grand Homes Realty, Brokerage*

REALTORS(R) must often deal with the unrealistic expectations of a seller. This is even more often the case in a changing market.  Buyers react much more quickly to market conditions than do sellers, and as  a result we have many properties on the market and coming into the market at unrealistic prices.Many of these properties will NOT sell. A Seller's unrealistic pricing is often cause by inexperience or the absence of REALTOR® representation, believing improvements are worth more than they really are, no knowledge of the Real Estate market, ignoring current competition, or needing a certain sales price based on personal expenses.

"Market Value" is the amount estimated by a professional, for which a property should sell for, in the present market place, given a willing Buyer and a willing Seller in an arm's lenght transaction, and after a reasonable amount of time and proper marketing.

Market value is not determined by:
* The price you paid for the home plus improvements and Real Estate fees
* It is not how much your friend, family member, neighbour or personal trainer thinks your home is worth....unless they are willing to         buy it  from you at that price.
* It isn't what you paid for the home plus a needed or historical rate of appreciation.
* It isn't more than your neighbour's house sold for because you like your house better.

A property that is priced right, presents well and is marketed properly will sell, no matter what the market conditions are!! Sellers must be objective and try to view their home through the eyes of a potential Buyer. This is very difficult to do and is why an experienced REALTOR® is such an important ally to have.

A pricing strategy that we here at Coldwell Banker Grand Homes Realty, Brokerage find effective is "ask less.... to get more!" Most Sellers tend to inflate their asking price by  5-10%  above market value to allow room to negotiate. This is not necessary. Buyers working with a REALTOR® have the same information that Sellers do, and will know what the market value of the property is. On average, properties sell on the  MLS® system for 2% below asking price. By setting your asking price at 2% (or less) above market value, your property will stand out from the competition as being better value! This should result in quicker and better offers.

Sometimes, it is difficult for a professional to determine an accurate market value. There may not be any good comparables, or the market may be changing in unknown ways. It is best to look at your asking price as a starting point. Don't lock this number into your expectations. Lower your price if necessary before the listing gets stale. A house sitting on the marktet for a long time creates all kinds of marketing challenges.