How to Price Your Home for Sale in Vancouver

Are you looking to cash in the enormous equity you have built up in the Vancouver real estate market in the last few years?

Pricing your home for sale in Vancouver requires a proper and well-thought-out strategy. Residential property prices can make or break a sales agreement as it is the first thing that most homebuyers see to shortlist the listings they want to view. Therefore, it is essential to determine the optimal price of your unit through research into comparable properties and a broader knowledge and feel of the real estate market in your location.

Let’s face it: The right price should have the potential to attract buyers. At the same time, it should also be able to earn you money and help you sell as quickly as possible.

Many sellers make the mistake of overpricing their homes in their enthusiasm to maximize their returns. Of course, there could also be other reasons for overpricing, such as an urgent need for cash, the original purchase price paid by the seller being too high, the seller being unaware of the market trends and prices, and the seller wanting to leave some room for bargaining.

However, industry analysts warn that overpricing your home in today’s stabilizing marketplace may not be the right approach to selling your single-family home, townhouse, or condominium unit.

Vancouver’s Housing Market is Actively Changing.

“With properties coming to market at a rate roughly five per cent above the 10-year seasonal average, there seems to be a continuation of the renewed interest on the part of sellers to participate in the market we’ve been watching this fall,” said Andrew Lis, the director of economics and data analytics at the Real Estate Board of Greater Vancouver, in a report. “Counterbalancing this increase in supply, however, is the fact sales remain almost 30 per cent below their ten-year seasonal average, which tells us demand is not as strong as we might expect this time of year.”

The right price, which is not always a high price, will be most beneficial in ensuring a faster sale, providing your property more exposure among potential buyers, increasing realtor response, generating more calls, attracting high offers, and preventing your home from sitting unsold for an extended period.

But how exactly do you know if your home for sale in Vancouver is priced accurately? Real estate agents purport that it is best to compare how it stacks up against other residential properties offered for sale within your neighbourhood possessing similar specifics.

Real estate agents can play an integral role in pricing your home right. They have the necessary market knowledge and can provide you with a comparative market analysis and pricing information of recently sold houses similar to yours in location, style, and features.

When pricing your home for sale in Vancouver, the primary objective should be to find a balance that places you in a solid position to receive offers while also giving you a good return on your property in the present real estate climate. If the price is right, you have a better chance of receiving multiple competing offers and a higher final purchase price.

It has been said that you need to obtain a free competitive market analysis offered by many real estate agents in Vancouver. This analysis will provide you with a range of home values and help you understand the prices of similar homes in your neighbourhood. You (or your real estate agent) should consider comparable listings within a one-kilometre radius of your property. In addition, be sure to focus on properties with similar age, square footage (+/- 10 per cent), age, and features and amenities, such as bedrooms and bathrooms.

Additionally, look at the list prices versus final sales prices and evaluate why there might have been price reductions for some homes, as this could provide you with an idea of buyer expectations and overall housing market trends.

A Summary of Pricing Your Home for Sale in Vancouver

Ultimately, it would be best to work with your listing agent to determine the best price for your property. Be sure to avoid overpricing, and remember that setting your price more than one per cent to three per cent over the market value could hurt your bargaining power. An overpriced property also tends to lose its appeal after a few weeks. Similarly, it is best not to price your home too low, as this could raise questions about why you are selling it so low.

Generally, a low-price strategy should only be used within a reasonable price window. The price has to make sense.

In the end, what is the best way to price your home for sale in Vancouver? Here are several tips to base it on:

• Location of your home.
• Property condition.
• Style and design.
• Prices of comparable homes sold in the last 30 to 90 days.
• Current Vancouver housing market

You will get it right if you conduct proper research, engage with an experienced real estate agent, and understand how the Vancouver housing industry or even the Canadian real estate market is performing.