This Home Won’t Sell – Lets Raise the Price!

My broker of record always says: "Price the home right, tell the world about it and it will sell. If the house has no roof – price it right – someone will buy it and put a roof on". There are many pricing strategies around, some of them are: "set a high price – reduce later", "set a super low price and stage for multiple offers". At the end of the day, Realtor is to sell the home as fast as possible with the highest possible price. Right? WRONG! I recently came across a brand new pricing strategy and I am still trying to figure out what good would it do to the home owner and reputation of both the house and Realtor involved.

Overpriced Home

There is an area in Toronto, with a good mix of new and older homes, detached and semis. Home prices differ greatly depending on many factors, but there is a general tendency…
New detached homes sell for up to 900K
New semis – up to 700K
Older, but renovated detached up to 800K
Older, but renovated semis up to 600K

Older, but nicely renovated semi comes on the market, location is not great – second house to the major street and 1 block away from the gas station. There is a note on the listing: "Offers to be viewed at 7 pm, a week from now". Very popular strategy to shoot for multiple offers and drastically bring up the price.

So, do you thing the home was originally listed at may be $500K to generate interest? Nope! $659 800!

By 6 pm, a week from now Seller gets 2 offers! None is accepted. And next day listing gets terminated.

Ok, I think to myself, they realized noone will pay this much and will create a new listing with new more realistic price or just won't sell it for now. Right? WRONG AGAIN!

Next morning the house comes back on the market, with a new MLS number, the price is $678 000!

Wow, could someone explain this super new pricing strategy, as I am miserably failing to understand it!

Compliments of Marina Gavrylyuk
Real Estate Agent with Sutton Group Summit Realty – selling with a smile!


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