How Do You Sell a Property for Over the Asking Price?
Wednesday, May 24th, 2023Maybe a better question is how do you know what the asking price should be? 
We recently sold a townhome in a popular northwest Calgary neighbourhood for over the asking price with multiple offers, despite its almost original condition. Picture original 1982 carpet, wallpaper on every wall, original cabinetry but in great condition given the age. The owners did a fantastic job de-cluttering and cleaning, but a new owner would likely have to spend not a small amount of money to bring the property to current standards.
Pro Tip – Understand Market Conditions
What percentage of available properties in the property’s market segment are selling? What has been the trend over the last few months and is the trend likely to continue? This will tell you if it is a “buyers” market or a “sellers” market or somewhere in between.
If there is a lot of inventory (listings) compared to the number of sales it is a “buyers” market. Like the experts say, real estate is all about supply and demand. If you are trying to sell quickly and over the asking price in a “buyers” market your asking price should be somewhat lower than recent sale prices of comparable properties in order to attract buyers. This creates a perception that the property is a “good deal” compared to the competition.
If the percentage of sales compared to the number of listings is balanced and the market doesn’t favour the buyer or the seller, your asking price should be equal to the sale prices, not the asking prices, of recently sold comparable properties. Again, this creates a perception that the property is a “good deal” compared to the competition.
If the percentage of sales compared to the number of listings is high and there is a shortage of inventory, the choice of a list price is trickier. The asking price should be higher than recent sales but not at a price which would create a perception that it is unreasonably high for current market conditions. Even in a super-heated “sellers” market, over-priced properties will not sell.
Pro Tip – Whatever the Market Conditions, Marketing is Important
In order to sell for the highest possible price, presenting the property well is still important. Cleaning, de-cluttering and sometimes staging will always provide a better result.
Take the time to prepare the marketing – photography, aerial, video, virtual feature sheets with great ad copy and virtual “walk-throughs” should all be done. Consider a “Just Listed” and/or “Open House” announcement post card drop to target market areas and social media posts and ads.
Target an MLS® list date on a Thursday with public open houses on the Saturday and/or Sunday with a notice of offer presentations on the Monday or Tuesday of the following week.
Obviously, this is an overview and a simplification of the process. Each market and market segment has its own set of challenges and idiosyncrasies.
If the research and the preparation are done correctly, just sit back and let the offers roll in! comparing and deciding which offer to work with is a whole other process.
As always, should you have any questions please feel free to let us know. We are always happy to help!
You can reach us at 403-686-1455 or book an online or in-person meeting here: https://www.cbcompleterealestate.com/book-an-appointment
