We have all heard the advice before: overprice your house and it will languish on the market and turn stale very quickly. Recently, I sold a property in Willowdale and this experience highlighted to me how very important it is to price your home correctly.
I had a prospective listing on a house that was in need of repair and would most likely be purchased by a builder as a development opportunity. I suggested we price it at the lower end of a range I suggested, based on neighbourhood comparables, mainly because of the poor state of repairs. We listed it at $1,198,000. After two weeks, the house sold to the highest of five offers. $1,283,000. $85,000 over asking.
Coincidentally, a similar neighboring property with only 28 more square feet to its lot, was listed just over our sale price, at $1,289,000 by another brokerage. That house appeared to be in much better condition and went on the market the very same day the first house sold. It too, sold after two weeks, for $50,000 LESS than we realized for my client’s property. So, paradoxically, if you start high, you may end up low.