The Edmonton Real Estate Blog

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Tuesday, October 11, 2005

Is your listing over-priced?

How does a seller know whether their house is listed too high? Here’s what to watch out for:The most obvious indication is when there’s no action on your house -- either website hits, calls, showings or offers. Or it may be that your listing is attracting attention in the form of calls and showings, but then no offers result. This can be a real indicator that there is demand for the type of housing you’re advertising, but when it is viewed, your property falls short. There may be other homes in the same listing price range that are perceived as offering greater value.

However, there’s another situation which may indicate that your house is overpriced. This happens when salespeople of other companies show your house to potential buyers on a frequent basis, yet no offers are ever received. They may have their own listings of similar houses that are priced below yours. After showing your house they may then take the buyers through their listing which is priced much more reasonably, thereby appearing to be a bargain! So watch for salespeople who regularly show your property without bringing you an offer. It just might be that you’re enabling them to sell their listing off your house.

If you think this may be happening, ask your salesperson to show you what other listings are currently for sale in a neighbourhood similar to yours. Then compare the list prices of these properties with your own. You, as a seller, are in competition with these listings for potential buyers. If your listing is not competitively priced, you and your salesperson can then decide on the next steps.

Your sales professional can also show you other valuable market data to help you evaluate the list price of your home. In addition to current listings, you can also review recent sales of comparable properties, to see what price is currently being commanded for similar homes in your area. Another helpful source of information is expired listings. These listings will show you what price the market will not bear. If your current list price is bordering on this range, you are risking the same unsatisfactory result if you keep your home priced at such a high level.

In a strong market, sometimes the best pricing strategy can be to offer a lower price to attract more activity and possibly even generate more than one interested buyer to compete for your listing.

Find out the value of your home.

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