Setting a List Price in the New Normal
Question: How do you set a real estate list price when the current climate is so uncertain?
Answer: By relying on technology.
A recent REM Online article posed the question, “How will we price a home with all of these changes?”
The article author pointed out that sellers who need to sell are still going to sell, and buyers who need to buy are still going to buy.
However, the pandemic may require a change in your real estate pricing strategy.
“When it comes to pricing a home, a common strategy in hot markets over the last while was listing lower, which would result in multiple offers,” REM Online wrote. “Now, we may see a modification in strategy where homes are listed at a price that the seller is content with and will be accepting offers at any time and not on a specified date.”
During the ongoing COVID-19 pandemic and economic fallout, it may not be possible to make perfect predictions, but by using data, you can make an informed one.
The pandemic is novel territory for everyone (the word “unprecedented” has been used so much for a reason!). Your gut instincts, the seller’s expectations, even comparable sales from a year or two ago may be completely different.
So, what can you rely on?
The way to approach the unknown is by using the resources already available to you. Here are some of them:
a) Comparable sales by neighbourhood
What are the homes around you selling for? How long have they been on the market? Did their list price change?
By reviewing the similar properties around your subject property, you can use the data to inform your decision.
b) Historical land registry data
While COVID-19 is an unprecedented situation, you might look at data from similar times, such as the 2008 recession. It’s not perfect as a lot has changed since then, but the sales history can tell you something.
More information can mean a more informed decision.
c) Teranet-National Bank House Price Index™
The Teranet-National Bank House Price Index™ is an independent representation of the rate of change of Canadian single-family home prices. The measurements are based on the property records of public land registries where sale price is available.
These insights can you big-picture house price trends by region that you can use when reviewing list price.
See the latest report here: https://www2.geowarehouse.ca/confirmation-of-housing-market-slowdown-due-to-covid-19/
d) The estimated property value
Property value is an integral part of setting a list price — and technology makes it easy to find the estimated value.
Prospective home sellers can estimate their property’s value through the Teranet Home Value Range tool.
Real estate professionals can estimate value through the Home Value Range or by accessing a Property Details Report from GeoWarehouse. The Property Details Reports also reveals important information, such as the legal homeowners, sales history, and more.
Access our in-depth property data for setting list prices, researching properties, and much more. Become a subscriber by calling 1-866-237-5937 or visiting www.geowarehouse.ca.