Does A Higher List Price Of Your Edmonton Property Make Or Break A Sale?
Real Estate prices in the City of Edmonton have doubled over the past decade. But what’s the best strategy to go about hitting a sale?
People are flocking to Canada. Skilled workers from all over the world are taking their sights away from the United States and all their problems, to the much more concise and uncomplicated world of the Great White North. Because of this, real estate all over the country is booming in a way that is unprecedented. Sure, there were the people who may have heard inklings of growth, but as a whole, even the positive predictors couldn’t have seen how well things would go in Canada. Real Estate prices in the City of Edmonton have doubled over the past decade. But since the boom, how should one go about listing their property? For sellers, what’s the best strategy to go about hitting a sale?
Here we’ll explore the possibilities and strategies that can make or break a sale.
One camp says that you should list your property above that of the average market price and valuation of the property. If you’re in a place like Edmonton, you’re seeing the market shift from a buyer’s market to a more balanced--or even sellers market. This is due to the influx of people, jobs, and the beautiful way of life. That’s the beautiful thing about Edmonton real estate: it hasn’t stopped growing in the last five years. When you’re in this kind of market, you can generally list above the asking price just based off of popularity alone. But there are some pitfalls to doing this. Some individuals may be averse to higher prices and go with a lower one based off of visceral reactions to numbers. But if you can sell it correctly--let's say this is the absolute best property in the area, then you can attract buyers that have already made up their mind.
The other strategy is to list lower than the asking price. This strategy is somewhat counterintuitive, yes. But the idea behind it is very similar to the honey pot principle: people like a sweet deal, and this attracts more possible buyers. It’s a strategy that’s employed heavily in California markets in which you list the property lower than what the seller is willing to accept. The more you build competition, the interest in the property will lead to offers that actually exceed the selling price. If you get more people to compete over a piece of property, one will want to win more than the rest. And in the end, everybody wins.
In terms of listing on a website, the higher one is placed on the online aggregator, the more eyes it will get. But people looking for houses are generally under the impression that they should “shop”. They will use the first 5-10 as reference values and then attempt to find something cheaper than those initially present. When they do, they will engage. So in terms of “listing higher” on a web search, it will not make or break the sale. Although it will be a factor in the decision making process.
Real Estate in Edmonton will continue to grow over the next decade. As the economy booms and the resource distribution start to shift more to the area, you can bet that you’ll find yourself more and more in a seller's market.