Not knowing the current real estate market could cost you thousands

Here in the Toronto real estate market there’s a lot of demand for small bungalows in good neighbourhoods.  Here’s a quick story about one that I think sold for less than I believe it was worth…

I recently did a Comparative Market Analysis for a couple who were retiring and looking to sell their bungalow.  Before I met with them I Housesent them all the comparable properties digitally (so they could look at them at their leisure) and on the day of the listing presentation I came with a detailed report.  The report outlined a customized marketing plan, identified the other properties for sale that were the competition, and justified a certain price.  They were impressed.

After following up with them, I came to understand that they “called in a favour” and that they decided to go with another agent.  That’s OK, losing to other Toronto real estate agents is all part of the business.  They also said that they were still very impressed with me, but the favour trumped everything.

A few days later the property was listed on the MLS at a price that was a lot lower than I suggested.  I just checked the listing today and noticed that the property sold firm in one day and for less than the list price.

Was calling in the favour worth it?  Did the agent that they chose really know the current state of the market in their neighbourhood?  HouseWe’ll never know.

All I can say is that as a Seller (or even a Buyer) it’s always a good idea to take the time to review the comparable properties that have sold before making a decision.

Favours aren’t always worth it, and The first offer isn’t always “the best”.  Sometimes it makes sense to not respond to low offers and always negotiate hard to make sure that your property sells for at least what similar properties in the area have sold for.

If you’re looking to buy or sell Toronto Real Estate, just pick up the phone and call me 416-671-5775

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