The first and foremost important step in purchasing a Toronto home is preparing the offer, as the terms set out in the agreement will dictate your type of lifestyle for the coming years.
To ensure the success of this important aspect of the purchase be sure to set up a meeting with your Toronto real estate agent once you have found the right Toronto home.
It is with your agent that you can go over the specifics of the offer and have the document finalized. Take your time to ensure its accuracy as once you have signed it the document becomes binding and irrevocable.
Once this is complete the offer gets registered and made available to the listing agent, and thereafter the offer presentation appointment is set.
When purchasing in Toronto offer presentations usually take place on the same day, sometimes lasting all day long with back and forth negotiations.
Your Toronto real estate agent handles your side of the negotiation and also presents your offer to the vendor and listing agent.
As these talks can go late into the evening, be sure to make yourself readily available for any sign backs that you may need to consider and authorize.
This article will focus on your different pricing strategies. Keep in mind some work better than others in a weak economy.
OFFER AMOUNT
Pricing Guidelines:
Below are a few general guidelines for Toronto homes.
1. Poor properties that are under-priced generally sell for asking price, rarely more
2. Average properties that are well priced generally sell for asking price, occasionally more.
3. Excellent properties that are new to the market generally sell for asking price, frequently more.
4. Anything else generally gets sold for below the asking price.
OVERPRICED?
See if the house on which you are bidding is overpriced by comparing the various listing price strategies provided below. This exercise can help you determine a fair offering price.
Listing Price Strategy
#1 Below Fair Market Value
Priced below value, these properties frequently incite bidding wars and end up selling over asking price.
Reasons for listing below market value include the real estate agent suggesting too low a price, or sometimes the vendor simply wants to sell quickly.
#2 At Fair Market Value
Priced very competitive, these homes generally sell fast and very close (near, at or above) to the listing price.
#3 Slightly Overpriced
These properties are generally between five to ten percent overpriced.
Most homes listed for sale use this strategy as they either feel their home is truly worth the price, or they wish to leave some room for negotiation.
#4 Extremely Overpriced
Extremely overpriced properties are generally between ten to twenty five percent overpriced. Vendors may do this for a variety of reasons.
They may genuinely feel that their home is worth that price, but more often than not some real estate agents have grossly inflated the value of the home to get the listing.
Unfortunately there is a natural tendency to work with an agent who quotes them the highest price, putting the vendor in a disadvantageous position when the property remains unsold for quite some time.
The longer an overpriced property stays on the market, the more bargaining power the buyer will have.
Evan Sage is an award winning Toronto Real Estate Agent specializing in working with clients who are downsizing their homes in Rosedale, Lawrence Park, Lytton Park, Hoggs Hollow and North Toronto. Evan works hard to instill in his clients the confidence to make the right purchase or sale decision. He achieves this by demonstrating a superior knowledge of Toronto real estate and by by educating his clients through the entire process. - Get more articles at Read Articles.com
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