Pricing Strategies

October 28, 2022

October 4, 2022


Sometimes pricing strategies can be as important or more important than other marketing strategies.


Pricing strategies can vary depending on the trend, the market, supply and demand, interest rates, economy etc. etc. They can also vary depending on the location, because in general, prices increase or decrease by different percentages in different parts of Toronto for various reasons.


The two most common types of pricing strategies are:


  1. 1. Pricing houses lower than what they are worth in order to create a bidding war and thereby hoping to sell it in about a week and for more than what it is actually worth. This approach works very well in a hot market. And yes, due to the frenzy created, most of the time the sellers land up selling in about a week and sometimes getting more than what the house is worth. This strategy worked very well before April of this year. Presently in the Don Mills, Bayview, and York Mills neighbourhood, that approach can and has backfired in some cases which can hurt the house. The higher the value of the house the better it is not to use this approach in today’s market.


  1. 2. Pricing houses a little above the actual value to leave some negotiating room. Overall, this strategy has been working well since April 2022, because most buyers like to be able to negotiate in a normal or declining market. Presently, many prefer not getting into bidding wars.


On a positive note, the market/prices could easily turn around again and shoot up very quickly as it has in the past, making multiple offers once again the norm.


If you are on the fence about selling and downsizing, selling, and renting, selling and moving to a retirement home or nursing home, and have a substantial amount of equity in your house, then it may not be a bad idea to sell sooner rather than later.


There is much more to the above two types of pricing strategies. If you are considering selling in the near future and would like an idea as to what your home is worth in today’s unpredictable, changing market, do invite me over for a confidential chat and I’ll be more than happy to discuss pricing strategies, the right time for you to sell and a lot more. You will be glad you did.


Ecko Jay

Broker of Record / Owner

Ph: 416-445-8858


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