If you’ve been paying attention to the news lately, you’re likely aware that the Toronto housing market is down from its peak of the market in 2022. While this isn’t necessarily a bad thing, it does mean that homes are staying on the market for longer than they previously were.
During the pandemic, it was common to see homes sell after only one or two days on the market, while today, things are looking a little more “regular” historically speaking. In February 2023, the average listing days on market were 22. That means properties were listed for 22 days on average before selling.
This might not sound like a long time in the grand scheme of things, however, for most home sellers in Toronto, selling as quickly as possible is high on their list of priorities.
Get the latest real estate info sent directly to your inbox. Subscribe to our newsletter right here.
Keep reading to learn more about pricing your Etobicoke home for a quicker sale.
What is a CMA?
A CMA or Comparative Market Analysis is a tool that real estate agents use to determine the pricing strategy and the price range for a specific property. When you are working with a listing agent to sell your home, the CMA is typically the first step in learning about your home’s market position. It’s the foundation of almost all other decisions you will make when listing your home for sale.
Agents will typically present the CMA as a digital document or they may print out some comparable sales, or “comps” to show you. A standard CMA will take into account:
- The sales price of comparable homes on the market and recent sales.
- The average days on market for comparable homes.
- Local market insights and stats that could help factor into the price of your home.
The end result of a CMA is typically a price range that your house could potentially sell for. However, there are other factors that could contribute to the price range.
Wondering about home appraisals? Read our blog all about them right here.
What Other Factors Go Into the Price of a Home?
Owning a home comes with a certain amount of pride. But that pride and bias can sometimes get in the way of selling. That’s why working with an experienced Etobicoke real estate agent is so important. They can take an objective look at your home and determine which specific features will add value to the sale. Some other factors that go into the final price of a home for sale are:
- Size, including how many bedrooms, bathrooms, etc.
- Exterior features such as the backyard, lot size, location, parking, driveway, etc.
- Upgrades. Has the HVAC unit been replaced? Did you install new windows? Was the roof re-shingled recently?
- Interior renovations such as installing new appliances, freshly painted walls, new flooring, updated kitchen and bathrooms, finished basements, etc.
- Added features. Perhaps it could be a theatre room, smart home technology, or even something like a basement/in-law suite.
- Is the home close to amenities such as parks, schools, shopping, healthcare, or transit? For families in Etobicoke, these amenities are important!
- Current market conditions could also come into play. Is there a lot of pent-up demand for a property like yours? Are we in a buyer’s market or a seller’s market?
- The time of year is also an important consideration. Selling when the market is busy in the fall or spring may impact your pricing strategy.
Thinking about selling your Etobicoke home soon? Read our blog ‘When is the Best Time to Sell Your Etobicoke Home’ right here.
Are Home Renovations Worth It when Selling?
In some cases, minor home renovations could yield a great return on investment on your sale. But in other cases, they just aren’t worth it. If your goal is a quick sale, renovations might even hinder you since they could potentially take longer than expected and hold up the sale.
Planning a renovation before selling should be something you discuss with your real estate agent. They can help you decide which renovations would have a positive impact on your home sale, versus the renovations that are simply not worth it.
If you’re thinking about selling your home soon, read these posts next:
- Why Your Agent Should be a Neighbourhood Expert
- 5 Real Estate Myths You Should Know if You are Buying or Selling
- Should You Renovate Your Home Before You Sell It?
Should I Price High or Low?
Once you have an idea of the price range your home should be listed for, the next step in your pricing strategy is to determine the final listing price. Here is where you can try to manipulate the market a little bit.
The fact is that the initial listing price of your home is significant. It’s critical to list your home and create excitement and offers on the listing right away. The longer a home is on the market, the less activity it sees, resulting in fewer offers, price reductions, and more.
Many sellers will either choose to price their homes high, low, or at market value. Here’s what you need to know about each option:
Pricing Low: This could be an interesting strategy to use in a seller’s market when demand is high for homes. A low price could trigger a bidding war, resulting in multiple offers that are higher than your initial price. However, there are some risks involved, as a low price could raise some red flags, or not have the intended result you hoped for.
Pricing High: Some sellers choose to price their homes slightly higher than market value with the hope of getting a little extra from the sale. This is a good strategy when there is demand for housing, and pricing high by a small margin could drum up excitement and entice buyers to enter into reasonable negotiations with you. However, pricing too high could result in some buyers missing out on your home since they might be looking in a lower price range. An overly-high price could also turn some buyers off and result in no offers and longer time on the market.
Pricing at Market Value: For many, this is the safest option. Pricing at market value feels fair for buyers, and depending on the current market conditions and demand for properties like yours, you may even see multiple offers. Again, it all depends on many factors.
Ready to sell? Find out how to choose the right Etobicoke real estate agent for your home sale right here.
How to Agree on a Price with Your Agent
With all the facts and knowledge about the strategies you could choose, your next step in pricing your home for sale is to work with your agent and come up with a final number. As you can see, there’s a lot on the line when choosing the right price, but your agent will be there the entire time to guide you through the process, give you the pros and cons for every scenario, and advise you on the best possible pricing strategy for an easy and fast sale.
Your agent should be well-versed in the local market, should be experienced in selling your property type, and should give you confidence that they are ready to negotiate on your behalf and protect your investment.
Whether you are buying a property or selling your home in Etobicoke, we can help. Contact us today at 416.882.8322 or email info@acriteam.com today.
