Determining A Price

The market sets the price, not wishful thinking or any other factors. It is a simple law of supply and demand. Here are some things that have no actual impact on market value :

  • How much you need to purchase your next home.
  • How much you paid for your home in the first place.
  • How much you spent on improvements. We consider the improvements themselves and how much value they bring, not the dollar value you are trying to recoup.
  • The value of a similar home in a different community.
  • The cost to build the same home today.

My job is to help you set a realistic price to match market conditions so your home sells quickly

for the best possible price. Where my expertise comes in, is in the comprehensive analysis of

what comparable/similar/competitive homes have recently sold for in your neighbourhood,

weighing that with your home’s unique features. This process is known as a Comparative

Market Analysis (CMA) and it is generally considered the most effective method of determining

what potential Buyers will be willing to pay for your home.

Contact Ivan for a Complimentary Market Analysis of Your Property

The CMA is divided into three categories:

1. Similar properties that have recently SOLD: By studying these, we can see what homeowners

have actually received for their properties over the last few months.

2. Similar properties that have currently been LISTED: These properties show exactly what

alternatives a serious buyer has to choose from.

3. EXPIRED LISTINGS were listed and did not sell. You can learn from their mistakes as they

could be as a result of overpricing or other factors like location, layout, poor marketing etc.

By carefully studying the comparable property locations, features and terms, we can develop a

clear picture of the potential market value for your property. This is a similar process that banks

and lending institutions use in determining how much they will be willing to lend you for your


In addition to the CMA, I will help you develop a competitive price based on other key factors

such as:

  • Location
  • Size
  • Style
  • Condition
  • Community amenities
  • Market conditions

Listing your property at market value is essential to a successful sale because Buyers will not

be looking at either overpriced or underpriced homes. Most Buyers working with Realtors®

receive property listings from their Realtor® via email, who is searching for them within the

parameters of their needs. If the buyer’s budget for a home is $800,000, they are likely only

looking at homes priced from $750,000-$850,000. You want your property to be seen by the

Buyers who want a property like yours.

Another important factor to determining the correct price is that your home will lose its

“marketability” after sitting too long on the market. There may be nothing wrong with your home,

other than an unrealistic price, but it will eventually develop a stigma. Buyers will forget all about

the overpriced home they saw weeks earlier; Realtors® searching on behalf of new clients will

see the DOM (days on market) and wonder what is wrong with the property and why it has not

sold yet. When they look at the previous selling price(s) and comparable properties they may

not be willing to present your home enthusiastically to their clients if they feel it is not priced


You will attract more interest on your home if it is priced realistically and Buyers will most likely

bring their best offer if they really want your home.

Most Buyers take between 2 and 6 weeks to build confidence and collect information about

prevailing market conditions before making their first offer. By the time a typical Buyer is ready

to make an offer, they will have seen all of the existing properties for sale in your neighbourhood

and will only be waiting to see new listings as they arrive on the market.

This means the first few weeks after listing are the most critical since the number of prepared

Buyers who will see your home will be at its peak. As a result, many vendors often come to

realize that the first offer is usually the best offer. Listen to your agent’s advice and price right

from the beginning.

Sellers Guide:


Determining A Price

Listing Your Home

The Market Plan

Presenting Your Home

Offer To Purchase 

Closing The Sale