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Setting an appropriate asking price for your home

Setting an appropriate asking price for your home

April finds us with lots of overpriced listings and fewer buyers than normal for this time of year. The Sunshine Coast is currently in a buyers’ market but, as a group, local home sellers haven’t fully processed this yet. Many still believe that their tax assessment is the minimum market value of their property but unfortunately for them, that simply isn’t the case.

On its website, BC Assessment states that assessed values are “based on comparable markets sales on or about the previous July 1.” And according to statistics from the Real Estate Board of Greater Vancouver, the Sunshine Coast’s benchmark price dropped roughly six per cent between July of 2018 and February 2019. Even if your assessment was correct last summer, the market has since slowed and the assessment should no longer be considered an accurate estimate of your home’s value.

There’s lots of competition for buyers this spring. If you’re serious about selling, price sharply and work with an agent who will present your property in its best possible light.

Deciding what your property is worth on the open market requires equal parts science and art. The science comes from knowing what data to reference; the interpretation of that data is an artform. Price too high and your home could sit on the market for months longer than needed. Price too low and you end up leaving money on the table.

When you ask an agent how much he or she thinks your home is worth, they should be able to speak knowledgeably as to how they arrived at the number they did. Depending on specific circumstances, I’ll use a combination of data points like recent sale prices, comparable price-per-square-foot, days on market, and even the time of year to determine what I believe your property to be worth on the open market.

Setting an appropriate asking price is arguably the most important decision you’ll make when selling your home.

When selling your home, smart pricing is crucial. A common misstep is to price your property too high in order to give yourself some room to negotiate down to the price you actually want.

This is the worst thing you can do. The average public are not professional real estate agents but they ARE the ones that choose what houses to see. Regular buyers don’t see a price that can be negotiated down: they see an overpriced home and keep looking.

I go into more detail on my pricing strategy in my book, “Setting a New Benchmark – The Straight Truth on Buying and Selling Real Estate in Canada”. Visit TBonTheCoast.com for your free copy.

Tony Browton is an award-winning Realtor who lives and works on BC’s
Sunshine Coast. 

His weekly blog can be found here http://www.truebluerealty.ca/blog

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