Often Seller's are confused as to how much to "list" their home for sale as they are getting suggested list prices from Realtors that can vary $10K- $20K. I explain to Sellers that "suggested List Price is an Art, not an exact Science". However, if due diligence is done, the price variation should be within 5-10K. More importantly, under normal conditions, the market sets the price that your home will sell and not the "listing" price.
You see, if you list your home at $420K. Yet the comparable homes values are near $400K. It won't matter that your Realtor® suggested your home was worth $420K, the market will only pay $400K. Unfortunately many Realtors inflate their suggested listing price to get your listing, or accept Seller's onerous listing price, knowing that in a month when there are no offers, you will be forced to reduce your pricing. You lose precious time and energy when you do this and Buyer agents will use your listing as a comparison to sell other listings to their Buyers at lower prices. Eventually your home carries a "stigma", that there must be something wrong with it, if it stays on the market too long. And the value may dip below $400K because of this. So when you reduce the price offers may only come at $390 or less. Bottom line: you will often suffer when you over price your listing. Don't do it, except in a couple of cases! "Your local market has very few listings, there are no comparable homes and you are just testing the market".
Whereas, time after time again, we see that listings that are priced right, sell faster and at top dollars. So if you listed at $300K. Yet the market showed your home is worth $310K. Then you will get multiple offers and your home will sell at $310K. Not only would you have sold within the first two weeks. You also get fair market value for your home. Just think, if you were a Buyer, you wouldn't overpay for a home, just because it is listed $20K more than it's worth. Buyer agents can get in a lot of trouble, if they misdirect their client to pay more for a home than it's really worth! The Real Estate and Business Brokers Act 2002, clearly directs registrants to provide fiduciary duties of "Competence & Good Faith".
So ensure you price your home to sell! And any Realtor® worth his medal, whose looking out for your best interest, as a Buyer or Seller, will always guide you and tell you how it is, and how it should be... irrespective if they got to list and your sell your home or not.
———- Jas Jagpal is a Re/Max Sales Representative, who helps families in Markham, Scarborough, Pickering and the GTA in the sale or purchase of their home. Jas’s professionalism and his unique 20% commission sharing program for charitable organizations distinguishes him as a leader in innovation and charity. If you are charitable organization, looking to fundraise and want to partner with extraordinary agent who is honest and upfront, then give Jas a call 647-272-6629. All buyers and sellers are encouraged to visit Jas's website and download his personal brochure to get to know him better. Affiliate with Jas, help him raise 50K in 2010 for charities and Make Good Things Happen. Thank you. ——–
