March 29, 2021
Should I List With an Offer Date?
Oh Toronto real estate.. how you continue to evolve/shift/shuffle and change..What I would like to address in this blog is how to attain the highest possible price for your property.It goes without saying that your property needs to presented well.. condos are rather simple as all you’ll need to do is de-clutter, paint, deep clean and stage the unit well.Homes are a little more complex.. as you’ll need to do all the above plus tend to the exterior of the home, landscaping, exterior painting, window cleaning, get a pre-list home inspection etc…The presentation of your property is so important… so once your property is prepared for the market, you’ll want to get photography/videography done.Having the right photographer/videographer for the listing is important… although I wont dive to deep into this subject (for another blog).Your property is now presenting well, you have the pictures and video in hand (which are both kickass) and you’re now ready to hit the Toronto MLS!What list price and strategy will bring you the highest possible sale price?“I’ve heard that offer dates work well!” proclaims the seller!Well, over the past few years we’ve seen this strategy take flight as demand on properties has been astronomical and inventory low.With that said..We are now in a more intricate and diverse market.You only get one shot at attaining the highest possible price for your property… the strategy in which you come out of the gate with is crucial.There are many factors which would make you lean towards listing with a hold back on offers (offer date) or listing at an ask price with a little room for negotiation.
- Market pressures / Buyer Activity
- Inventory levels
- Recent comparable sales
- Demand for your type of property specifically
- Who is occupying the unit..? Tenant, owner, vacant!?
- Whether there has been a shift in the market since the most recent similar sale.
- Location, location, location!!
- Time of yearI could probably give you another 20 reasons to consider before creating your strategy. Although, if you calculate the information incorrectly.. it could cost you to miss your opportunity to strike while the iron is HOT!
The iron has to be hot to elect an offer date startegy.. this would mean low inventory levels with a large amount of buyer demand for your property type. If you elect to list with an offer date in a slow market.. you will sabotage your listing process as noone will show your property.
Electing a high list price with a small amount of wiggle room for negotiations.. is the best course of action for MOST market across the world. It’s not common where you find properties underlisted for multiple offers… its only something we’ve become accustomed to in Toronto based on record low inventory. Electing the list high method.. you NEED to make sure you price your property appropriately. Buyers need to be motivated to view your property.. and nothing makes a buyer not want to waste their time as much as an overlisted property does. This shows that the seller is unrealistic and that the buyers efforts are futile.
Understanding how properties are selling in your neighbouring region is important.. you’ll want your agent to be experienced in your area and speak with other agents in the region to have the best understanding of the current state of the market.I cannot tell you that one method works better than the other as I’ve seen both work very well.If a realtor lists a HOT property in a good neighbourhood without an offer date it is likely because they have a very strong read on the market.. or they don’t.We are in a market where the buyer determines value.Whether the buyer can clearly understand the comparable sales or succumbs to market pressures is largely based on how your property presents.. and the strategy in which you use.List with the wrong strategy and it could cost you tens if not hundreds of thousands of dollars.. make sure you do not underestimate the power of your first 2 weeks on market. The first 14 days on market are when a seller has the most leverage.