A large majority of Ontarians – three out of four – planning to buy a home in the next two years say that the listing price has a big impact on whether they want to see more of a home, shows research from the Ontario Real Estate Association (OREA).
“Setting the sales price is one of the most difficult and critical steps in the home-selling process,” said Pat Verge, president of OREA. “If you set your price too high, many prospective buyers won't even look at the property. If you set it too low, you could miss out on thousands of dollars. The objective, then, is to choose a price that is neither too low nor too high.
“For eager buyers in a market with tight inventory levels, new listings are highly anticipated, and you can be sure that they will be paying attention to the price among other factors.”
The research, conducted by Ipsos Reid, also found that the features on the listing sheet (56%) and interior photos (55%) have a big impact on a buyer’s decision to want to see more of a home. Aspects like the average household income of the neighbourhood (22%), the age distribution of the neighbourhood (23%) and proximity to a highway (29%) had the least impact.
The saying goes, that when it comes to real estate, the three most important things are location, location, location. New research reminds agents that a “sweet spot” price that won’t turn off potential buyers is just as important.