For Sale By Owner It Won’t Be Easy – First Thing Determing Price.

Since this issue has so much to it, I have put together a series addressing the various aspects addressing both the seller’s and buyer’s perception to the transaction.

Let me say that I see no issues of a Toronto  homeowner trying to sell their home privately.   Hey, you want to save that commission, but in doing so just be realistic of the road you will be embarking upon.  Of the 10 homes that I see which are selling privately I would guess that one will sell.  The remaining 9 will languish on the market for months and eventually the seller will turn to a realtor to get it sold…I don’t make this stuff up.   Lets go through the process of why one was successful while the other nine failed. So what I will outline looking at this from both the seller’s view versus the buyer’s perception:

  • The first issue which you will be facing is determining a market value of your home on condominium.  What the seller will get are the comparables of their property to what has sold or presently for sale.  Believe me, nine times out of ten the seller will say “my house is the best” so will pick the most expensive sold property. This evaluation is most likely 10% to 15% over valued to the realistic price the home/condo should be listed.  Lets be blunt.   Greed is the driving force, in that the seller wants to pocket as much cash from the sale.  So now, this listed property is the most expensive of similar properties and the seller is now anxiously waiting for a buyer to offer them buckets of cash.  And just to give the finger to the real estate machine, on mls.ca you are offering $1.00 to any realtor bringing in an offer.  Stick it to the man.
  • Now, today’s Toronto buyers do not fall out of the sky.  They have been actively checking out the neighbourhood through mls.ca, open houses and for some through their realtor so they know housing prices.  A buyer sees the house say from either driving down the street or most likely from mls.ca.   However, the first sign on lawn or online they see is For Sale By Owner or that from some discount brokerage.  Like dating, first impressions do count.  Our buyer knows that the house is over priced and when they put their list of comparables together, yes, they pick the lowest one.  We now have two solitudes and what happens is inertia.  And so the waiting begins.

The next aspect I will be addressing in the next blog is what’s the seller’s marketing plan and does it reach, impact and  influence a buyer to act.