The Race to $1000 per Sq Ft!
We as humans LOVE round numbers!
Have you every been to Europe and seen things advertised with the tax in?
I remember seeing a Mcdonalds meal in Amsetrdam advertised for 4.47€! This price in Europe includes tax and shows the true price you will pay for the Mcdonalds meal.
Side note: I did not eat Mcdonalds in Amsterdam if you’re wondering!
It’s simply a good comparison as any Mcdonalds meal here ends in .99 cents…. I distinctly remember saying to myself… why doesn’t it end in .99?!?!
Well my friends… we have now reached that point with the price per square foot in the Toronto real estate market.
We have been in a race to $1,000 per sq ft… and for the most part, people think they’ve reached it!
I mean.. when has it ever been easier to price a property than now?
872 sq ft? obviously its worth $872,000!
I cringe when I see this logic.
The worst part is that real estate professionals are promoting it!
Often times, in buildings which should not command such a price.
Don’t get me wrong, if a building is high quality in a great location with good features… and the market is indicating the value is $1,000 per sq ft or near to it.. then sure, price it accordingly.
Although, what Im now seeing is properties worth closer to $850 per sq ft being listed at $1,000 per sq ft on the button.
I.e. 772 sq ft unit listed for $772,000 while the market is only indicating the property is worth $850 per sq ft which is $850 x 772 = $656,200. Thats a disparity of more than $115,000.
I don’t write this blog only to poke fun at the logic behind this type of thinking..
Im writing this blog in an attempt to help you from sabotaging your listing…
Over pricing your listing is the surest way NOT to sell it.
Not only that, you will actually contribute to the sale of properties which surround you as you will push the buyer to that property.
The day’s of receiving 20 offers on your property are no longer present and its important to consider the reality of the market when selling.
It’s now more important than ever to nail your properties listing strategy..
If you’d like a hand with understanding the market or to list your property, then reach out anytime.