A Word to Vendors,
Well, the government’s objectives at dropping the housing market worked. It was a rough start to this year but with the spring market, more listings arrived along with high expectations from vendors on pricing. Most of the product available came from people trying to cash in on a high market but their listings were well below average in quality. As a result, those listings had to adjust their pricing down to where they should have been in the first place. The houses that were in excellent condition and updated had no problem with their pricing. So remember if you are listing, work on your home to show as well as possible.
When choosing a listing price it is still important to adjust to the quality of the listing, a rule of thumb is to:
Start with a comparable home that sold in your immediate area that garnered the highest price…
subtract renovations to get it to that point plus a bit for pain and suffering through renovations and that should be your listing price.
ie. Sale of $800,000. minus $150,000 for renovations minus $35,000 = your price to sell $615,000