86
Ontario
|
November 2015
(NC) When shopping for property,
buyers pay attention to the price
more than any other factor, new
research from the Ontario Real
Estate Association (OREA) reveals.
According to 75% of Ontarians
planning to buy in the next two
years, price has the biggest impact
on whether a buyer wants to see
more of a home.
“Setting the sales price is one of
the most difficult and yet critical
steps in the home-selling process,”
says Pat Verge, president of OREA.
“It’s a skill that requires extensive
knowledge and training as well
as access to sophisticated market
analysis.”
Realtors use a process known as
Comparative Market Analysis to
determine a home’s market value.
That is, they compare your proper-
ty to similar properties that have
sold recently or are currently on
the market. Realtors also take into
account social, political and eco-
nomic factors, as well as the specif-
ic features of a home and property
to arrive at a realistic asking price.
“The first few weeks of the list-
ing are the most important,” says
Verge. “If you set your price too
high, many prospective buyers
will be frightened off without even
looking at the property. If you set
it too low, you could miss out on
thousands of dollars. The objec-
tive, then, is to choose a price that
is neither too low nor too high.”
The price you choose to put in the
Listing Agreement will be based
primarily on its fair market value,
but will also include other factors,
such as the mood of the market,
the market’s current strength or
weakness, rising or dropping inter-
est rates, employment rates, buy-
er confidence, competition with
other homes, as well as your sales
objectives. Speak to your Realtor
about all of these considerations.
In addition to price, the features on
the listing sheet (56%) and interior
photos (55%) also have a big im-
pact on a buyer’s decision to want
to see more of a home. Aspects like
the average household income of
the neighbourhood (22%), the age
distribution of the neighbourhood
(23%) and proximity to a highway
(29%) had the least impact.
www.newscanada.com
HOWTO PRICE YOUR HOME JUST
RIGHTWHEN SELLING
