Toronto Real Estate Blog

You are not hiring a realtor to put a sign on the lawn, an ad in the paper, and hold an open house – you can do this yourself. You are hiring a realtor to provide you with maximum exposure to the greatest number of qualified buyers for your home.

Supply and Demand

We are sure you’ve heard of supply and demand, right? The more potential buyers that can be supplied, the higher a price you can demand.

The absolute number one tip we can give you to help you get the most money possible for your home is this: make sure you get full Multiple Listing Service (MLS) coverage.

Don’t look at any offers until you are sure your home is on the MLS system. Again, just to be sure – don’t look at any offers until you are sure your home is listed on MLS. This gets your property in front of every real estate agent in your area. An army of realtors at your disposal just can’t be beat.

Dump any realtor that tries to tell you to list your house exclusively (only his/her company) or wants you to negotiate offers before it gets on MLS. Dump any realtor that wants to list your house on a Friday and have a public open house the following Sunday. There is not enough time to get your home on the system.

We do not care how good a realtor’s marketing plan is (or appears to be), it is worthless compared to the value of having your home on the MLS system. Think of it this way: realtor = home on MLS = more realtors = more buyers = more money.

Is the first offer the best offer?

There is a saying in real estate. The first offer is usually the best one. This is only true if everyone knows it’s for sale. We have had many situations where the first offer IS the best offer, but there have been instances where that was not true. In fact, when we have sold our own properties, the first offer was never the best. But different situations have different outcomes.

MLS Comes First

Ask any realtor you are contemplating dealing with what the order of their marketing plan is. If submitting to the Multiple Listing Service is not the first thing they are going to do, look for another realtor. Ads and signs and open houses are nice, they make you feel that your real estate agent is DOING something for you… but that is not always the case.

Most people who call on ads end up buying a different property, experience has shown this to be true. And to be honest (our fellow realtors are going to kill us for this one), signs and open houses mainly generate leads for the listing real estate agent. Most people who call on signs usually cannot afford the property they call on. Same with open houses, everyone who comes through leaves with your agent’s card, generally buying someone else’s house afterwards.

If you took away every selling tool we have and said we could only have one of them back – we would choose the condos-for-sale/mls.htm” title=”MLS service”>MLS service. Seriously. This is not a commercial for MLS. It is just the best weapon realtors and the public have for getting maximum exposure on a property.

If you are selling a property, listing with a realtor who uses the MLS service means your property gets maximum marketing exposure to all other members of the local Board. You’ll have realtors everywhere trying to find a buyer for your property.

And with all those realtors working for you, how can you lose?

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Contact the Jeffrey Team for more information – 416-388-1960

Many sellers consider selling their homes privately rather than listing with a traditional real estate agent. It has been estimated that private sellers account for up to 20% of the total resale home market. However, statistically MLS listings get 8-12% more cash return on the sale of their property. Some American studies have shown the difference to be as high as 16%!
The obvious reason for a seller to sell privately is to save the cost of real estate commissions that can be as high as 5% of the selling price of a home. Often private sellers (commonly referred to as condo/privatesale.htm” title=”For Sale By Owner”>For Sale By Owner or FSBO) offer commissions to real estate agents working with buyers to encourage these real estate agents to show their homes.

For Sale By Owner properties do not have the benefit of exposure on the local real estate board Multiple Listing Service (MLS) or on the real estate industry internet websites like mls.ca and realtor.com. A private seller can only expose their home for sale to potential buyers by newspaper advertising and marketing efforts which are extremely costly. Hundreds and even thousands of dollars can be expended without ever coming close to the exposure that a home for sale receives when listed on MLS.

Private sellers do not receive any assistance that a real estate agent could provide including coordination of the process and any ongoing advice.

A seller cannot not have their home listed on MLS without engaging the services of a real estate agent. Many potential private sellers end up listing their home with a real estate agent to simply ensure MLS exposure.

The choice is of course, up to you. But consider the commission of your sale price – take your asking price and multiply it by 5%. That is your average commission going to be split by the selling and listing agents and their brokerages. Now start calling to see how much it costs to advertise in local papers, major papers and any other marketing costs. Think about the personal time you’ll need to devote to this if you sell on your own. Consider the fact that most buyers of FSBO homes are in fact “looking for a deal” and investors that usually know what they are doing and are good negotiators. Do you need that headache?

If you choose that you can handle it then, more power to you and I wish you the best of luck. If you realize that this may be too much for you, then please give us a call and we’ll give you a free market evaluation and then we’ll list it on MLS.

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Contact the Jeffrey Team for more information – 416-388-1960

The market ultimately determines the true value of your property.

Before you compare your home to similar properties and establish a competitive list price, the following points should be considered:

1. Location
2. Size
3. Style
4. Condition
5. Community Amenities
6. Buyer Supply
7. Financing Options

Getting to Know Your Market

A condo/marketevaluation.htm” title=”comparative market analysis”>comparative market analysis is an indicator of what today’s buyers are willing to pay for a home. It compares the market activity of homes similar to yours in your neighborhood. Those that have recently sold represent what buyers are willing to pay. The homes currently listed for sale represent the price sellers hope to obtain. And those listings that have expired were generally overpriced or poorly marketed.

We, as Right At Home Realty real estate professionals, will prepare a comparative market analysis for your home based on the most current market information. Together we will establish the proper list price for your home.

Reasons for Over Pricing

1. You’ve spent $$$ in extensive renovations.
2. You found that there were hidden costs when you moved in and found that it was too much to carry.
3. You desire to purchase a new home in a higher-priced area.
4. Original cost of home was too high and now you are trying to recoup some of the extra you spend.
5. You are lacking real market information – you need the proper facts.
6. Many sellers build in “bargaining room” for when they actually get the offer.
7. Perceived emotional value – your children were born there, etc – it means so much to you but the problem is that buyers don’t see that. In their eyes it’s a house to buy, without emotional strings – yet.

The Sad Results of Overpricing

Many sellers believe that if they price their home high initially, they can lower it later. But it may be too late at that point. Often, when a home is priced too high, it experiences little activity. Gradually the price will come down to market value, but by that time it’s been for sale too long and some buyers will be wary and reject the property.

On occasion, the price is dropped below the market value because the seller runs out of time. The property sells for less than it’s market worth.

YOU CAN MISS THE RIGHT BUYER!

You may think that interested buyers “can always make an offer,” but if the home is overpriced, potential buyers looking in a lower price range will never see it.

Those who can afford a home at your asking price will soon recognize that they can get a better value elsewhere.

The Importance of Early Activity

As soon as a home comes on the market, there is a flurry of activity surrounding it. This is a crucial time when real estate professionals and potential buyers sit up and take notice.

If the home is overpriced, it doesn’t take long for interested parties to lose interest. By the time the price drops, a majority of buyers are lost.

It’s important to really think it over and be reasonable when you list your home for sale. Of course you want the best price for your house, who doesn’t? The best way to get that is to price your home at market value. Or, another excellent idea is to list just a bit below market value which usually brings in multiple offers and then the final sale price is often over the asking price.

We hope this is a bit of helpful information for you in your expanding knowledge of home selling. Please feel free to contact us should you have any questions or are ready to embark on your home selling journey!

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Contact the Jeffrey Team for more information – 416-388-1960

Pricing your home is an art – not a science

Achieving the optimal price is the result of both objective research into similar properties and instinct in determining how much a buyer will be willing to pay for your home. The right price will attract showings, which will generate offers. Setting your price too high results in little or no showings, or offers.

The unfortunate fact is that price is the number one factor that most homebuyers use to determine which homes they want to view. It’s also important to remember that although you and your realtor set the asking price, the selling price is determined by the buyer.

The Correct Price Will
* Result in a quicker sale, with less inconvenience to the condo/sellers.htm” title=”seller”>seller
* Expose the property to more buyers
* Increase buyer’s agent response
* Generate more ad calls
* Prevent your listing from getting “stale”

Typically, homes that sell more quickly, sell closer to or sometimes over asking price. But is the correct initial asking price that allows for such fast sales. Pricing your house or condo above market value will not generate a higher sales price, in fact, overpriced properties usually sell for less than they would have had they been priced correctly.

Some Common Reasons for Overpricing
* Over-improved property
* Strong emotional attachment
* Original purchase price too high
* Desire for “negotiating room”

Overpricing Pitfalls
* Most of the activity on your home will occur in the first few weeks. Pricing a home properly creates immediate urgency in the minds of buyers and agents.
* There is a pool of buyers who have seen most available homes in their price range and are now only waiting for new listings or price reductions. A buyer that has been waiting may fail to see your home if it is priced too high.
* Sometimes a price reduction may be too late, as interest by both buyers and realtors, may have waned.
* Buyers and their agents are very aware of the length of time a property has been on the market and the most common question continues to be: “How long has it been on the market?” Often buyers are reluctant to make an offer on a home that has been on the market for too long, thinking that there is something wrong with the home.
* Unfortunately, overpriced listings frequently help you to sell your neighbor’s reasonably priced home, making it appear that their home is priced very well.

The Role of a Real Estate Agent in Pricing
* Provide you with a comparative market analysis, which is a comparison of recent homes with similar amenities that are available and have sold recently.
* There is no exact price – your home is worth what a buyer is willing to pay.
* The market determines value and you and your agent determine asking price together.

Realtors have no control over the market, only the marketing plan. The seller determines the selling price. Thus, you should never select your real estate agent based solely on them suggesting the highest list price.

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Contact the Jeffrey Team for more information – 416-388-1960

By Dana Flavelle

Where Toronto condos are built, stores are soon to follow.

The condos-for-sale/torontocondos.htm” title=”downtown Toronto condo”>downtown Toronto condo boom is fuelling a renaissance in retailing. And that’s attracting the attention of some big retail chains more commonly associated with suburban shopping centres.

Canadian Tire and Best Buy both plan to open stores this fall a stone’s throw from the Eaton Centre.

Home Depot has long coveted a site in the downtown core and is considering several, including one near Queen Street West and Portland Ave.

And grocery chain Loblaw Cos. Ltd. has two downtown locations on hold, one in the former Maple Leaf Gardens hockey shrine, the other near Bathurst St. and Lakeshore Blvd.

But while there’s no lack of retailers who want a presence downtown, the trick for many of them is finding the right site at the right price, experts said.

“Downtown Toronto is a very successful market – there’s a huge number of people living here and a huge number of people working here – if you know how to capture it,” said John Archer, a retail consultant with JC Williams Group in Toronto.

Compared to the typical suburban power centre, downtown rents are higher, square footages are smaller and often there’s little or no parking space, which can be a problem if you sell things like lumber or 50-inch plasma screen TVs.

Garden tool and hardware retailer Lee Valley Tools has adapted its business model in several ways since opening its first downtown store, on King Street West, near Bathurst, last April.

A few customers complained about the lack of parking, said Mark Williams, vice-president of retail operations for the small Ottawa-based chain.

But many more were grateful the small 13-store chain had opened a store that was closer than Steeles Ave. or Morningside Dr., he said.

A “surprising” number of customers arrive on bicycles, he said, which prompted the retailer to ask the city to install more bike racks.

As well, the store tends to sell more small hardware items and fewer large gardening tools than its suburban counterparts, he added.

The retailer is also reconsidering its operating hours to accommodate the higher demand for early-evening shopping, he said.

Lee Valley’s experience isn’t unusual.

The downtown Toronto condo market is different, said Tony Hernandez, director of Ryerson University’s centre for the study of commercial activities.

“It’s a much more complex market than the suburban mall,” Hernandez said.

People tend to live in smaller quarters. There’s also a larger commuter population, which tends to shop more on their lunch-hour or right after work.

Best Buy said its new store, on the southeast corner of Bay and Dundas Sts., will offer more delivery services and stock more small items than a typical suburban location.

“We’re well aware that with an urban store, you’ve got some different customers,” said company spokesperson Lori DeCou. “You have commuter customers who may be making smaller purchases, or using the store to research purchases they will make on the weekend at their local store.

“They’re on a tighter schedule. Maybe they’re on their coffee break. So, there are issues around how easy we make it for them to navigate the store and get through the checkout line,” she said.

The company plans to open one of its largest stores in the city in the “Ryerson Project” now under construction. The building, which is being co-developed by Eaton Centre owner Cadillac Fairview Corp., will house Ryerson University’s new business school, as well as retail and residential units.

Canadian Tire said it’s opening an 85,000 square foot store in that location, also one of its largest, as well as a 10,000 square foot Marks Work Wearhouse, this fall.

The push is also coming from the retailers themselves, he said. Many American retailers who came to Canada in the early ’90s did what they had done at home and set up shop in the booming suburbs.

Now, some of those markets are saturated while downtown Toronto has witnessed a condo building boom.

“Unlike a lot of other North American cities, Toronto has a lot of residential development,” said Hernandez.

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Contact the Jeffrey Team for more information – 416-388-1960