What makes a good Real Estate Listing Price?

Is it better to shoot high or low? How negotiable should I be? How flexible is a listing price?

One of the most daunting tasks as you prepare to sell your home is the listing price. We get questions all the time with concerns about how much a home is worth, and whether or not pricing it at its real market value is the right thing to do. The concern we hear is this; price too high, what if I scare away buyers? Price too low, what if I don’t get what my house is really worth?

So how do you decide? First and foremost, you’re going to need a great Ottawa real estate agent to help guide you through the process. At New Purveyors, we are certified to help you list your house at the right price, to make sure you get the best possible selling price for your home. Through years of training and experience, we know the best way to list your home so that it is attractive to buyers, while still getting you the best price for your home. 

Let us walk you through the process of how we find the best price for your home. 

First, we’re going to look at the ‘market value’ of your home. This is determined by evaluating your home, as well as other similar properties on the market. Using this, we’ll be able to see approximately how much your home is worth. We will also look at other homes in your neighbourhood to see how they are being priced. This will be highly dependent on how your home compares to those in your neighbourhood, and how similar homes elsewhere are being priced for the same amenities and updates. We can place your home within the selection of homes we consider using all of these factors. 

Finding your home value is not as easy as using an online home evaluation tool. Many websites search for the average price in your community, on your street, or in your building, which won’t be accurate. Many aspects of your home go into its market value, including renovations, amenities, bedrooms, and more. If you are looking for an accurate home evaluation, call one of our agents to set up some time to review everything your home has to offer!

We will also consider the current market for your neighbourhood, city, and even province. If it is a seller’s market, the price point may be different than in a buyer's market. The difference between these two is inventory; in a seller’s market, there are plenty of buyers and few homes available. There are plenty of homes and fewer buyers in a buyer's market, meaning more competition. 

Next, we’ll decide whether or not we want to price your home at market value, or below. Lower prices can attract more buyers, especially in a buyer’s market where a competitive price is one of the few ways to get buyers’ attention when so many houses are available for sale. This can also contribute to a quicker sale, so if you are trying to get out of your home quickly, a lower price can typically assist you in speeding along the process. Low prices bring lots of interest. Finally, a lower price may also provide more Ottawa home buyers with the chance to place an offer on your home, and if you can begin a bidding war with some excited buyers, you may be able to meet or even surpass market value this way. 

Next, we’ll be choosing a specific number. We have to consider how the buyer will be viewing it, so easy rounded numbers are best. We also may pitch a number slightly below the market value to make it more searchable online. For example, 490,000 versus 500,000.  This is because when it comes to looking at properties online, people may choose ‘below’ a specific number. If their budget is 500,000, they’ll be searching “below 500,000”, and anything priced at 500,000 will not appear.  For us to show up in this search, we may want to list right below it.

All of this considered will help out Ottawa real estate agents assist you in creating the perfect listing for your home. Selling your home in Ottawa doesn’t have to be difficult!