Archive for November, 2013

Is Overpricing Really the Best Strategy?

Is Overpricing Really the Best Strategy? Photo

If you want to get the best price for your home, should you:

A. Ask for more than you think it’s worth?

B. Ask for exactly what you think it’s worth?

C. Ask for less and count on a bidding war to push you over the top?

That’s the question posed by a recent Toronto Star article.

The article points to a 2013 study in the Journal of Economic Behaviour & Organization that says the correct answer is option “A” – overpricing is often the best strategy for achieving the highest sale price.

Of course, that article goes on to say that, “pricing high pays off in an extremely modest way, a boost of about $100 to $200 on average over similar homes.”

Seriously? A benefit of a mere $100 to $200?

Is that a typo? Did they forget to add another zero (or two) to those numbers?

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Toronto Real Estate Market Report: October 2013 Statistics

Toronto Real Estate Market Report: October 2013 Statistics Photo

Following is TREB’s market report for October 2013:  Greater Toronto Area REALTORS® reported 8,000 home sales through the TorontoMLS system in October 2013 – up from 6,713 transactions reported in October 2012. Over the same period, new listings on the TorontoMLS system were down.

“The GTA home ownership market has been broadly characterized by a rebound in sales since the summer. Market conditions have been tighter in some market segments more so than others. Ground-oriented homes listed for below one million dollars in some areas of the GTA have been especially popular with buyers, while listings for these home types have been constrained,” said Toronto Real Estate Board President Dianne Usher.

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