House at 65 E 26th Avenue was originally listed at $1.6M, sold for just under $2.2M.
CBC News Posted: Mar 27, 2015 11:53 AM PT Last Updated: Mar 30, 2015 6:08 AM PT
A Vancouver real estate agent who has just sold a home for $567,000 over its published listing price says that underlisting is an accepted selling strategy in the real estate market.
"If the product's right, the timing's right and the inventory is right, it's the right strategy," Paul Eviston told CBC News.
Nevertheless, Eviston said, he would hesitate from using the term "underlisted" in the case of the home at 65 E 26th Ave., originally listed at $1.6 million, which sold for $2,167,000.
"I wouldn't call it underlisted," he said. "I would call it strategically listed to garner the interest level that we wanted to get the result that we got."
Sitting two blocks west of Main Street — both a physical and psychological divide — the home is in an area where prices often exceed $2 million, but the selling price was still a record high, Eviston said.
"It was the highest price per square foot ever achieved for an East Vancouver home," he said.
"We did some very significant marketing on that home. We did a lot of different things to get the buzz going on it."
The listing price attracted around eight interested buyers, Eviston said. That quickly dropped to three serious buyers when it became clear no one was going to secure the house at or near its asking price.
Eviston stands by his strategy on the property, and in the end, he said, it's the market that dictates price.
"We definitely felt that the value was somewhere between where we listed it and where we sold it," he said. "Pricing it where we did was a strategic position to take in the market, and [we felt] that the market would no doubt dictate what the value of the home was."
A few more points on pricing from Ron with RE/MAX
Attracting Buyers is the name of the game. As a Seller, you have two goals:
- To get the most money possible
- To sell as quickly as you can.
Be realistic. Price is the number one factor that most home buyers use in determining which homes to view. Although the price is set by you, the Seller, the value of the home is determined by the Buyer. Don't allow your enthusiasm to warp your judgment and lead to overpricing - a mistake you can't afford to make.
Here are some factors to consider to help you sell your home. This information is not all-inclusive and does not replace the value of a personal consultation.
What Affects Your Asking Price
Urgency. How quickly must you sell?
Competition. Are there just a few or many homes available in your price category and area?
Available Financing. Does your home come with an assumable loan that is below today's rate? What are the current home loan interest rates? What financing alternatives are available for your home and area?
Competitive Market Analysis. Do you know what similar homes in the area sold for within the last six months
Expenses. What are your selling costs?
What Doesn't Affect Your Asking Price?
Original Cost. Your price is determined by today's market.
Investment in Improvements. Potential Buyers will evaluate your home (i.e. wallpaper and carpet) and may include the costs to remove or replace in their Offer.
The Cost to Build Your Home Today. A replacement value is determined for insurance purposes only.
Personal Attachment. Prudent Buyers purchase based on their emotions, not yours.
Neighbour's Claims. Don't listen to what your neighbours tell you is the fair market value for your home. Other homes in your neighborhood may not be as similar as you think. Also the terms accepted by both the buyer and seller greatly affect the sale price.
What Happens to an Overpriced House?
You'll Help Sell the Competition. The "correctly priced" homes look even better if yours is overpriced. Most Buyers are competitive shoppers.
Your Home Will Stay on the Market a Long Time. At any time there are many Buyers waiting and watching for new listings and a trickle of new Buyers coming into the market. Did you know that 80% of your potential Buyers will see your house in the first one to two weeks? If you don't sell them then, it can take six to twelve months to replace them with an equal number of newcomers.
You'll Lose Market Interest and Qualified Buyers. Serious Buyers use the value, quality and price of similar properties as deciding factors.
A Negative Impression is Created. People will wonder why your house is still on the market - they'll believe something is wrong with your home.
You (The Seller) Would Lose Money. You may have to make extra mortgage payments as well as incur taxes, insurance and unplanned maintenance costs.
You (The Seller) May Have to Accept Less Money. Studies show that the longer a house is on the market, the greater the discount off the list price. Often a seller will accept less than fair market value in order to sell because of an approaching deadline.
There is the Potential for Appraisal Problems. The Appraiser from your Buyer's lending institution must agree that the home is worth the asking price. If the Appraiser believes the price is inflated, the loan may not be approved.
Look to Ron Neal and The Neal Estate Team with RE/MAX For The Truth and The Answers You Need!
As you can see, there are a multitude of factors that determine the asking price of your home. Finding this price can be a difficult task. That is why thousands of satisfied homeowners, like yourself, turn to experts. Ron Neal and The Neal Estate Team will tell you the truth, what you need to hear, not what we think you want to hear. We have the tools necessary to compute the fair market value of your house quickly and accurately while allowing for personal considerations (such as the date by which you must sell). Ron Neal & The Neal Estate Team with RE/MAX Alliance will also confidently answer your questions about listing, pricing and showing.
Our goals are the same as yours:
- To get you the most money possible;
- To sell your home as quickly as you can;
- To make selling your home a pleasant and profitable experience for you.
When You Want to Price Your Home to SELL FAST for TOP DOLLAR
Count on Ron Neal & The Neal Estate Team of RE/MAX Alliance
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The Neal Estate Team is your #1 source for all of your Victoria BC real estate needs. Get in touch with us online or by phone at (250) 386-8181 to speak with a Victoria real estate buying or selling expert today. With decades of experience as a top selling Victoria REALTOR® and ranked in top 1% globally with over 4,000 transactions and $1 Billion SOLD, Ron Neal & The Neal Estate Team have the industry experience and market knowledge to help you make smart and informed buying or selling decisions.