Finding that perfect list price
Most of the time, when you’re selling a home, the perfect list price isn’t black and white. Even when you look at comparables, things can get tricky – especially if the last truly comparable home sold a year earlier, or didn’t have as nice of a kitchen as yours but featured an extra bedroom instead.
That’s why, most of the time, your real estate agent will give you a range in which to list your property. You have the option of listing on the low end, the high end or right in the middle. Or, depending on the market conditions, below it – in the hopes of enticing a bidding war.
Below are four factors that can determine whether or not you get multiple offers on your property:
1. Your home’s price point
Is your home worth over a million dollars? If so, don’t count on multiple offers. There’s a smaller pool of buyers in this price point!
2. Demand in your area
If your home is located in a neighbourhood that doesn’t see a lot of selling action, then chances are people have had their eye on it for a while – and many will jump at the opportunity to get in there.
Similar to above, if your home is in a coveted neighbourhood with good schools and good walkability, be prepared for some bidding war action.
4. List price
The lower the list price relative to its market value, the higher the chances of multiple offers – but they’re not guaranteed. Buyers don’t like being played, and sometimes the bidding war game can back fire.
Even if you price your home at a point that you think it’s worth, there is a chance that you’ll get a few interested buyers, if you fall into the criteria above. After all, the market is usually pretty good at dictating accurate prices.