How is price determined?

When you decide to sell your property, you want to sell it for as much money as the market will allow. Pricing too high will keep your home from selling. A low price will keep you from receiving full value. In a multiple offer situation, buyers may start to try to outbid each other, which ultimately means more money for you. As soon as the property is listed on MLS it is exposed to all 23,000 Toronto Real Estate Board Members. If a property is priced below market value, it will likely generate a lot of interest and in many cases drive the price back up to market value or above.

Do your best to resist comparing what your neighbor down the street "claims" they got for their home and what you feel you should get. Each home is different. That home may have been renovated or perhaps was sold during different market conditions, which can change from month to month.

The market ultimately determines the true value of your property. The following points should be taken into consideration before you are able to compare your home to similar properties and establish a competitive list price:

• Location


• Size


• Style


• Condition


• Community amenities


• Buyer Supply


• Special Financing options

Remember: The market determines price.

Avoid the urge to price your home based on considerations that do not affect its market value. For example, the following do not affect the market value for your property:

• How much you need to purchase your next home


• How much you paid


• How much you spent on improvements


• The value of a similar home in a different community


• The cost to build the same home today

Your personal attachment to your home (Yes, it's your house and you're proud of it, but this makes no difference to potential buyers.)

I will do a Comparative Market Analysis (CMA), which is an indicator of what todays' buyers are willing to pay for your home. It compares the sales activity of homes in your neighbourhood which are similar to your. Those that have recently sold represent what Buyers are prepared to pay. The homes currently for sale represent the price sellers hope to obtain. The listings that have expired were generally overpriced or poorly marketed.

The Comparative Market Analysis will help you and your sales representative establish the right list price for your home based on current market conditions.