Your new realtor suggests you overprice or underprice your home.
Think it could work?
How to Determine List Price
Before you make any decision, it’s good to know that pricing your home right is the final step in a comparative market analysis (CMA). Thanks to online home value estimators, strategies that overprice your home in case buyers offer less are old school now.
Assuming you’re using a licenced REALTOR® or real estate agent, they’ll know precisely what your home is worth. Ask your agent for a CMA that shows:
- homes you are competing with
- list prices for similar homes, styles, and sizes
- and sold prices in your neighbourhood.
A reputable agent’s suggested list price is their best guess based on the CMA, experience, and your priorities. Find an Ontario REALTOR®. Look up if a real estate agent is registered to practice in Ontario.
Pricing Your House Right
You’ve got the CMA and suggested list price in hand. Should you underprice or overprice your home, instead of pricing your home right?
What Happens When You Overprice Your Home
Why bother? Most buyers have a budget. Your effort to overprice your home can put it out of reach for many. Buyers won’t spend the time or energy to view your home.
Let’s face it: buyers know when you overprice your home. They use Zillow too.
Overprice your home and you risk spending long days on market (DOM). Buyers will wonder what’s wrong with your home. Realtors may assume you’re desperate and lob lowball offers at you. All that tidying to keep your home in showroom condition could be wasted effort.
Avoiding the Impulse to Underprice Your Home
Underprice your home rather than pricing your home right, and you could regret the precious time bidding wars consume. Bidding wars may seem like a great strategy to get top price, but the hype can backfire unless:
- interest rates are reasonable
- your market has more buyers than homes
- your realtor is skilled at managing multiple bid scenarios.
Otherwise, perfectly good buyers may assume your home has issues and walk right by.
Accept a firm offer real estate bid.
Best List Price Strategy
Seriously looking for the best strategy for pricing your home right? Think through your home seller priorities:
- how urgently you need or want to sell
- whether you’re prepared to make minor repairs
- if you want to sell “as is, where is”
- and what your lowest or best price is.
Add a 48-hour escape clause to buyers’ agreement of purchase and sale. That lets you accept offers while you wait for buyers to sign off on “subject-to” conditions. Buyer’s remorse Ontario sellers could get stuck with.
Escape clauses and mutual consent release forms make it easy to make changes or move on. Drafting an amendment to agreement of purchase and sale.
Using an Online Home Value Estimator
Still unsure how to price your home right? Find the most accurate online home value estimates with Zillow (1.9% error rate for homes already listed) or Redfin (3.04%) or:
- Use financial marketplace estimators like Zolo or Wowa.
- Compare free realtor estimators.
- Try online home value estimators from major banks.
Get a home appraisal if an online estimator appears to overprice your home for your local real estate market. But be careful not to underprice your home below fair market value, as home appraisals sometimes do.
Remember, buyers aren’t always realistic about their finances and the deal could still fall through. Keep CMAs, home appraisals, and online estimates in your hip pocket in case you need to relist your home for sale. Hidden costs of buying a house in Ontario buyers may not realize.
Why You Need a Real Estate Lawyer
You won’t have to worry about the high cost of legal services when you close your Ontario real estate transaction with Axess Law. Our virtual and in-person real estate lawyer service charges only flat fee rates to complete the legal documents you need for a property purchase or sale.
Your Axess Law real estate attorney can review the fine print in a draft or final offer to purchase. We suggest changes that protect your financial or legal interests and negotiate with a buyer’s or seller’s lawyer to make amendments.
Limit your legal liabilities when you cancel a real estate purchase by including a mutual release by consent clause in the agreement of purchase and sale. We draft essential clauses for you. If you change your mind, our professional legal team advises you on the buyer’s right to cancel.
Discharge mortgage liabilities for existing homes, and sign new loan obligation forms before you take possession of a new or resale property. Your Axess Law real estate lawyer liaises on your behalf with banks, credit unions, trust companies, or private lenders. Documents your real estate closing lawyer needs.
When the offer is final and the mortgage documents are done, Axess Law searches title to property for construction liens or financial claims that may stop or delay a sale. Not sure who you want on title? Ask your real estate lawyer to transfer title of property to a spouse or family members after the sale concludes.
Affordable Real Estate Lawyers, Anywhere You Are
Access lawyers for less in the Greater Toronto Area, Ottawa, or anywhere in Ontario when you buy, sell, or transfer property. Axess Law’s flat fee real estate lawyers are affordable, and our rates are all inclusive (excluding taxes, disbursements, and third-party charges). Axess Law offers you only the legal services you absolutely need. Your final invoice includes no surprises or hidden charges. Your itemized statement of adjustments is explained when we deliver it, and we answer any questions you have about it.
Virtual Legal Assistance 7 Days a Week
Video conference online anywhere in Ontario. Use any compatible home computer, laptop, tablet, or mobile device to connect with an Axess Law virtual real estate lawyer. We use secure, confidential video conferencing software to witness your signature, then forward a final copy for your records.
How to use a remote real estate lawyer.
Book Legal Appointments Quickly
Finalize real estate transactions with a quick, no fuss real estate lawyer from Axess Law. Find Greater Toronto real estate lawyers with our 647-479-0118 lawyer line. Dial toll free to 1-877-402-4207 or use our easy online booking form for a virtual real estate lawyer near me. Video conference with a lawyer anywhere in Ontario or meet in person at our conveniently located Ottawa or Greater Toronto Area law offices.
Click here to learn more about Axess Law’s real estate lawyer services.