Asking Price vs Selling Price
Terminology: Asking Price
There’s a lot of factors that go into formulating the perfect asking price when selling your home. You naturally want to get as much as possible for your Vancouver property and maximize ROI. But price it too high and you could scare off potential bidders.
Asking price is typically provided by the realtor using a method called Comparative Market Analysis. This is when Realtors formulate a pricing model based on homes recently sold in the area along with current listings.
Here at Jacob + Jacky we believe that a well-researched asking price can help the property sell quicker and often encourage multiple bidders which can produce a higher selling price.
Terminology: Selling Price
The Selling price is the final price the property ended up selling for.
Some properties sit on the market for a longer period of time and may have to accept a lower selling price than the initial asking price.
Other times, if priced competitively it can encourage a wave of interest being slightly below comparable listings. This influx of interest can solicit multiple offers and secure a higher selling price than the original asking price.
It’s important to educate yourself:
- Follow the market and compare to home sales in your neighbourhood.
- As a Seller don’t inflate the value based on emotion or sentiment, be realistic.
- Being opportunistic immediately out the gate and going for a higher than average asking price is often a transparent tactic and can discourage any interest.
Seller's option of Pricing
Trust your Realty professionals. They are acutely aware of market prices, similar listings and what asking price range will encourage offers. By leveraging their knowledge you will reap the rewards.
Sellers pricing below market value:
- Attempt to generate multiple offers
- The notion of exceeding the actual true market value by creating a bidding war
- Con: if the seller don’t get the price they want it is very hard to adjust the price upward
Sellers pricing above market value:
- Likely won’t get enough traffic
- The buyers that view the home use it as a benchmark to compare to accurately priced homes in the area
Receiving an Offer
Selling a Home in Vancouver is stressful so the moment you start receiving offers you want to move quickly. Just remember to take your time and evaluate each offer carefully with your Realtor and make an informed decision.
So how should you react when:
- The offer comes at the asking price?
- If the conditions are favourable and the price offered matches your asking price then it would be a wise to consider it. Most offers are only valid for a short amount of time, you can wait until the expiration is near for other bids.
- Offers come in below the asking price.
- Negotiate with your Realtor on final price and terms, discuss what is within acceptable range and what is “too low”.
- Removing a few perks or waiving some upgrades and repairs would be able to save you money in the end and speed up the move in dates.
- Offers at above asking price is the best-case scenario as a home seller. This is common in hot markets like Vancouver.
- Attracting more than one bidder drives more impulsive offers. FOMO or the Fear of Missing Out is a factor that force people to make an offer where they may not have originally if perceived demand was low.
- Having a Realtor that can remain calm and cool while applying the best possible strategy will ensure you get the maximum price possible.
Vancouver’s new rule for a 3-day buyer’s rescission period attempts to ease the bidding war disadvantage that many buyers face today.
When you decide to sell your Vancouver-area property it is very important to do your research. Visit realty websites and look at listings in your area that match your home. This will give you a real-world idea of asking price vs selling price and what you should put your property on the market for.
For expert advice on what you should list your Vancouver property for contact us and schedule a no obligation call with our team.