Establishing House Prices for Listing in an Uncertain Market
Determining a property’s list price can be hard at the best of times, but when the real estate market is constantly shifting, it’s even trickier. In today’s rocky Canadian housing market, how do you establish a house price?
With increasing interest rates, new Canadian mortgage rules, and a record-high level of Canadian household debt, setting a list price might feel a little like shooting in the dark. But having a good understanding of your target market, the area where you’re selling, and using technology to your advantage can make the process a lot easier.
- Look at Comparable Sales and Listings
Understanding the Canadian real estate market is your best bet to establishing a list price, even in rocky economic times. Pulling data of every similar home in the neighbourhood that was listed in the past three months can give you a good idea of what other houses are selling for.
If you’re pulling comparables, also keep in mind:
- The distance — your search shouldn’t be too broad unless you’re selling in a more suburban or rural area.
- Neighbourhood dividing lines and barriers, such as railways, a major road, a highway, etc.
- Similar square footage.
- Similar home age.
When you’re assessing comparable listings, also question the sales history. How many days were they on the market? Compare the original list price to the final sales price and the final sales price to the actual sold price.
The GeoWarehouse Comparable Sales report can give you this information at your fingertips.
- Look at the Property’s Sales History
How much has this house sold for in the past? Whatever the results are, file them away with a grain of salt. Remember, the housing market might have been completely different then, but it is still valuable information to know.
The GeoWarehouse Property Details report contains a detailed sales history that will help with your decision.
- Consider the Neighbourhood Desirability
Is this an up-and-coming location? Is it close to schools and parks? Is it near a highway or busy road? These can all play a role in how you price the home and can make a less attractive property more appealing and a more attractive property less appealing.
GeoWarehouse Aerial Imagery can give you a birds-eye-view look at the neighbourhood that you can show potential buyers.
- Honestly Assess the Property Value
Different tools can give you an appraisal of the property’s worth. For instance, with GeoWarehouse you can access the Property Details report, which includes Land Registry information and MPAC assessment data. When you have a value in mind, compare it with the comparable sales and honestly assess the property you are looking at.
- Know Your Target Market
Where do your leads come from? What types of marketing do you have in place and what might work for this property? If you’re not sure, this could be a sign that you need to do more research. Tools like the GeoWarehouse Demographics Report can help you identify important neighbourhood information, such as the age distribution, average household income, and more. Every property is different of course but understanding your potential buyers can go a long way towards establishing list price.
The other factor to consider are the changing market conditions themselves. Analysis such as the Teranet Market Insights report can give you an idea of what types of properties are selling where and an overview of the Canadian housing market as a whole.
The next time you’re trying to establish house prices for listing, access all of GeoWarehouse’s reports, images, and data at www.geowarehouse.ca and find out how you can become a subscriber.