Its all about quantity and impression.When people are buying a house, they get into some-what of a HEAT! Underpricing Your House drives that heath up. I would call it a hunter gatherer mind set.
Buyers are constantly on the hunt, and one thing that I’ve noticed is that even with me sending my clients updates daily on houses, with their criteria, they will still have the urge to go on realtor.ca, and hunt for properties that might not be in their best interest to look at.
While the public mls site is great in a buyer market, in this heated market, it is not a good thing. It allows buyers in “Heat” to do their own searches, and look at underpriced, sometimes outdated listing. Hold on right there if you think I’m saying buyers are not educated enough to know what they want. Buyers in this day and age, are the most educated they’ve ever been. In some cases they know more than the agents, and become very savvy and become like detectives.
So, why do agents under price houses? Its a physiological thing, people always want or try to obtain something that they may think they can get. Some people will look at a million dollar house, listed for half a million and say, today’s my lucky day, lets go look at that house and put an offer for half a million plus fifty thousand.
Underpricing your house will bring in bids, that may not even come close. In the stupid way our industry is setup, no bids can be disclosed, so other buyers only know how many bids there, and they have to beat those bids to get that house. Even if you under price your house too much, the market is in such a sellers market right now, that you can just say no to all of them, and take the property off the market and re-list higher.
My advice always to my buyers is to find out what the comparables are, to look at what is on the market, and to set a max bid based on that information.
READ RECENT BLOG & ARTICLE POSTS BELOW
When I do an open house or put a house up for sale, I always get a few questions about features that I always say, why do you want that. Here they are: 1. Central Vacuum: Why do you want to lug around a snake and try to clean the house? Its simple, its called Dyson....read more
I read articles all the time written by Real Estate agents who are trying to convince themselves that we are in a good business to be in, and that it is necessary to use an agent for every transaction. In Toronto, put up a sign and your property will be sold by the...read more
One thing that can truly help lower GTA prices are some major transit solutions. It is apparent that the GTA market and all of the surrounding areas have gone buck wild in the past few years, and especially in the last few months. So many sales records have been...read more
The liberal government has announced that they will be doing something to calm the renting hikes from landlords. While this is a good thing for renters, it could be a detriment to housing and landlords going forward. Some landlords have already become proactive and...read more
While the Ontario Government cut this John Tory's dream of having a great highway into Toronto short, I believe he was on the right path to increasing the value of Real Estate. When I heard they were going to add some sort of toll to cars going into the city, I was...read more
Buying a house and using the listing agent is like going into court without a lawyer to represent you. Each and every time I have a listing, I have somebody calling me asking me "what's the price if I don't have an agent and buys directly though me?" I always want to...read more
What is the one thing the liberals are looking for right now? Votes and money. The way that they will try to get both is to try and capitalize on this hot real estate market. The middle & lower class does not like the fact that they cannot afford any real estate at...read more
Right now marijuana, and grow ups are a fairly minimal concern when buying houses. Agents typically put a clause that the owner never grew or has known about any grow ops in the house, but this is about to change next year. What is changing is that July 1st, 2018,...read more
Solar roof panels are the ugliest feature to attach to your house. I tried to sell a house once with solar panels and nobody wanted to even think about it. The panels were bulky and ugly, and the technology to save the power to batteries was messy and confusing. ...read more
For the past few years, all of the new buzz in Market was for aerial footage. While it was great and produced some really cool pictures and video, there is going to be a shift away from the practice. Many Real Estate agents got their own drones, and did their own...read more
This is a question I get asked all the time. The Short Answer is No, you cannot tell somebody you won't rent out your place because they have a pet. Another question, many people have is, whether or not you have a pet clause in there, and then the tenant gets a pet...read more
Why does everybody have an option about what is going to happen in the real estate market in Canada? It is a story that is not going to go away. An abundant of money tied up in the Real Estate. Every facet of life is intertwined with Real Property. I must read or talk...read more