SELLING
Market Value
Pricing
Setting the Right Price for Your Home
Determining the right price for your home is one of the most critical steps in the selling process. It’s not about what you originally paid for the property or the upgrades you’ve made. Instead, pricing is about understanding what buyers in today’s market are willing to pay.
The real estate market is constantly changing—overall and within specific neighbourhoods. Staying informed about these trends will help you and your agent set a competitive price that attracts buyers while maximizing your return.
Market
Understanding Market Conditions
The current market climate can significantly impact your home’s sale price and timeline. Here’s a quick overview:
- Buyer’s Market: A higher supply of homes than buyers. Prices are stable or declining.
- Seller’s Market: More buyers than available homes. Homes sell quickly, often at higher prices.
- Balanced Market: Supply and demand are roughly equal, creating stable conditions.
Key Factors
Key Factors Influencing Market Value
Several factors come into play when determining your home’s value, including:
- Mortgage rates
- Property price and condition
- Location (it truly matters!)
- Supply and demand
- Seasonal trends in the market
Asking Price
Setting the Asking Price
Once you and your agent determine your home’s value, it’s time to set the asking price. The goal is to attract a willing and qualified buyer at the best possible price within a reasonable timeframe.
The asking price should generally not exceed market value by more than 5% to achieve this.
- Too High: Overpricing may discourage buyers or extend your home’s time on the market.
- Too Low: Buyers may question the home’s value and make lower offers.
Your agent will work with you to strike the perfect balance.
CMA
The Comparative Market Analysis
A CMA provides a comprehensive analysis of your home’s value, offering insights into the local market:
- Similar Homes for Sale Now: Understand your competition. Buyers will compare your home to these.
- Recently Sold Similar Homes: Discover what buyers are actually paying for comparable properties in your area.
- Expired Listings: Learn from homes that didn’t sell, often due to overpricing.
Using this data gives you a clear picture of your home’s value in the current market, ensuring your asking price is both realistic and appealing to buyers.
Setting the right price is crucial to selling your home quickly and successfully. Let’s work together to make your sale a success!