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Peter Mulholland | Ora Ross together with their team of professionals offer the utmost in client customer care and experienced quality service. Helping buyers and sellers in the Central Toronto, North York and Thornhill areas for over 20 years.

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Is it harmful to a seller's bottom line to change a listing price once it is on MLS?  
With homes selling for the highest prices ever in the Toronto area, Sellers are finding themselves asking whether they can list their homes for 'more' than what the market will bear - with the idea they can always 'come down' if things don't work out.

All too often we find Sellers who clearly understand the realistic market value of their home yet wish to 'start a little higher to see what happens'.  Home sellers have heard lines like 'You can always come down' for years. Our 30 years of experience show that a home that is initially priced too high will most likely sell for less than it actually could have, if it had been priced correctly right off the start.

What often occurs is a good home is priced well out of reach of those that would actually buy it - so they don't bother to view it or if they do view it, they feel the seller will never come down to their price. The home priced in the higher price range will attract buyers who are expecting more for their money. Remember, we are all comparison shoppers. For these buyers price is not their issue - they are simply looking for more house at that price.

Time goes by and it is typically 30 - 60 days later, the seller concludes that perhaps they are asking too much. A price adjustment is made and now the home is priced where it should have been.....30 - 60 days ago.  Do you see where this might be a problem?

Now as new buyers take notice of a home that is listed in their price range, their first question is 'Why has the home not sold?' or 'What is wrong with this home?" And as much as a great Realtor can explain that the home was priced much higher and has now been reduced, the buyers are often left with a sense of doubt. What if it's still too high? Perhaps the sellers will reduce it again. Maybe we should wait....

The worst part about this scenario is that it is difficult to launch a new listing/new price, when it has already been on the market for a month or two.  Rallying up the excitement of that new listing to both Realtors and home buyers can be a difficult task.  keep in mind, while all this is going on with your home sitting on the market, other homes have also come on the market and these well priced  new listings will always steal the thunder away from those homes that have been sitting and are now 'reduced'.

I should include the idea that raising a listing price can also be a poor decision. Often times we see sellers price their homes at what they believe to be under priced. They do this in an attempt to attract multiple offers or a 'bidding war'. When the plan fails and they don't see the price they wanted or don't attract the bidders, they sometimes increase their price!  The buyer's are confused and again, will sometimes wait to see what is going on. Can you imagine being a home buyer and watching a home increase it's price after being on the market for 1-2 weeks?

As professional Realtors with over 30 years experience pricing and selling homes for their highest value, the Mulholland Ross Team will show you exactly how the market is moving in your price range. One of our key services is to interpret the market for you so that you can make the wisest decision for you and your family.  We then use our years of experience and formal training to negotiate the highest possible price.
If you're considering a move and would like to learn more just send us a note or give us a call 416-230-8500 - The Mulholland Ross Team. It's your home. It's important.