Setting the best asking price for your home that reflects current market values will help sell your home quickly and for top dollar. When you price your home properly, you increase the chances that you receive offers closer to asking price. You may even receive multiple offers, resulting in netting more then your asking price.
Odds of selling
Your home has the best chance of selling, within its first seven weeks on the market. Studies indicate that the longer a property stays on the market, the less it will ultimately sell for. If a property is priced 10% more than its market value, it is significantly less likely to sell within this window than a property priced close to its actual market value. About three-quarters of homes on the market today are 5 to 10 % overpriced. Sellers will usually over-price their homes if, either, they believe their home is worth more than what the market indicates, or if they want to leave room for negotiation. Either way, if you choose to over-price your home, you run the risk of increasing the amount of time your home stays on the market, and decreasing the amount of money your home ultimately sells for.
What can affect the market value of your home?
- Location:
The proximity of your home to amenities, such as schools, parks, public transportation, and stores will affect its status on the market. Also, the quality of neighbourhood planning, and future plans for development and zoning will influence a home’s current market value, as well as the ways in which this value might change.
- Property:
The age, size, layout, style, and quality of construction of your house will all affect the property’s market value, as well as the size, shape, seclusion and landscaping of the yard.
- Condition of the Home:
This includes the general condition of your home’s main systems, such as the furnace, central air, electrical system, etc., as well as the appearance and condition of the fixtures, the floor plan of the house, and its first appearances.
- Comparable Properties
Ask your Realtor to prepare you a general market analysis of your neighbourhood, so you can determine a range of value for your property. A market analysis will provide you with a market overview and give you a glimpse at what other similar properties have been selling for in the area.
- Market Conditions/ Economy:
The market value of your home is additionally affected by the number of homes currently on the market, the number of people looking to buy property, current mortgage rates, and the condition of the national and local economy.
Is Calgary today a buyer’s or a seller’s market?
The market will always influence a property’s value, regardless of the state of a home, or its desirability. Here are the types of market conditions and how they may affect you:
- Seller’s Market:
A Seller’s market is considered a “hot” market. This type of market is created when demand is greater than supply. That is, when the number of buyers exceeds the number of homes on the market. As a result, homes usually sell very quickly, and there are often multiple offers. Statistically, more homes can and will sell above the asking price. - Buyer’s Market:
A Buyer’s market is a slower market. This type of market occurs when supply is greater than demand, the number of homes exceeding the number of buyers. Properties are more likely to stay on the market for a longer period of time. Fewer offers will come in, and with less frequency. Prices may even decline during this period. Buyers will have more selection and flexibility in terms of negotiating toward a lower price. In this market, you may consider to price your home a little below market value. - Balanced Market:
In a balanced market, supply equals demand. The number of homes on the market roughly equal to the number of buyers. When a market is balanced, there aren’t any concrete rules guiding whether a buyer should make an offer at the higher end of his price range, or the lower end. Prices will be stable, and homes will sell within a reasonable period of time. Buyers will have a decent number of homes to choose from. Sellers may encounter some competition for offers on their home, or none at all.
Your own research
It is the job of your Realtor to know the current market and market trends inside and out. To be closely connected to Calgary’s real estate market, and to be aware of other properties currently for sale in your particular area. Based on this range of connections and knowledge, your Realtor should counsel you on how to set the best asking price for your home. And this best asking price attracts the highest price possible, in the shortest period of time.
Setting the best asking price for your home is not always easy. You should ask an experienced realtor for a market evaluation of your home. Added to that, we have a few articles available that give you more insides about pricing your home right; 7 misconceptions about pricing your home and why is my home not selling?
To learn more about Calgary’s real estate market you can visit our statistic page or you can visit the live statistics from the Calgary Real Estate Board.
Ask us for a free monthly Market Report
All sold data, including home features, number of days on the market and the ratio list price vs selling price. Sold data is a great way to understand the real estate market in your community.
