How not to price your home in London Ontario
- Take your mortgage balance.
- Add your credit cards.
- Throw in your cars.
- Add a generous portion of all the money you borrowed from relatives.
- Pile on your down payment for that other house you have your eye on.
- Last but not least, give yourself an extra $25,000 for just for being you.
- Get a blank look on your face when you are told by a professional listing Realtor that the buying public doesn’t care what you owe.
- Wait some more.
- Decide you’ll stay after all.
Here’s a better plan:
- Find out what homes like yours have sold for in the past 90 days
- Price the house at that number or 5% less.
- Pack your bags.
The buying public is utterly ambivalent about what you owe to who as it relates to pricing your property. They only care about their own needs. What you need isn’t on their radar, and if you aren’t priced in line with the current perception of value, your listing will get stale and sit unsold for months as you chase the market.
Chasing the market is always being one price point behind what the public is willing to pay. You enter the market at $459,900 when you really ought to be at $449,900. You lower to $449,000 when the market for the house is $439,000. By the time you hit $429,000, it could be 2 months later and the public isn’t willing to pay more than $420,000. (True story)
Each price drop seems harsh, but your real enemy was you starting out too high.
Sellers are in a war of attrition with buyers who lurk before they call, call before they look, and look at everything before they buy. You won’t get a call, look or offer until your price conforms to what the public deems fair.
The only offers overpriced homes get is low ball offers from bold types who wouldn’t pay as much as fair minded people would on a fairly priced home. The only way to win the battle is to price your home at the market price and not allow your ego or personal preferences to cloud your objectivity.
Why go into a battle if you cannot win?