As the prices of homes continue to rise, it can be challenging to judge if a house listing price in Markham is fair and not overpriced too far beyond its value. After some shopping around, especially in this hot seller’s market, you’ve probably realized that what you consider to be a fair price may be different from how the seller has listed their home. So how do you determine what the real fair price of a house is in order to negotiate with the seller?
Here’s how to check that a house listing price is justifiable and worth the investment. With these tips, you can master your real estate experience during this Markham seller’s market:
Look at Comparable Homes
To judge if a house listing price in Markham is within the norm and therefore fair, look at its comparable homes. You’ll want to consider factors surrounding the property like its size, the type of home for sale (detached, townhouse, or condo,) and the neighbourhood that the house is located in. These influence home pricing, especially if the house meets some of the criteria that are in high demand on the market. Other factors that influence the property’s listing price include whether it’s close to amenities, including schools, and the property’s lot size.
Look at Underpriced Homes
There are cases where homes will be underpriced during your search. In York Region, for example, the average listing price of a home is going down, while the final sale price of a home is going up. In these cases, homes are being underpriced in an effort to attract more bids and ultimately drive up the final sales price. By looking at what comparable homes were listed at and what they sold for, you’ll be able to determine how much over the listing price an average buyer is willing to pay. With this knowledge, you can prepare for a bidding war and determine if it’s possible to stay within your budget when submitting a competitive offer.
Look at the Condition of the Home
A house that’s a “fixer-upper” will likely be priced lower than a house that only needs a new coat of paint, even if it’s in a desirable neighbourhood in Markham. The price of replacing old hardwood floors, performing extensive electrical repairs, and fixing leaky plumbing will quickly add up. If you want to negotiate for a lower price, determine if the home will need any sort of expensive repairs.
The state of the current real estate market may give sellers more leeway when it comes to selling a fixer-upper. For example, the average homes for sale in Markham only sit on the market for about ten days, which puts pressure on buyers to snatch up homes quickly, even when they’re not necessarily worth the price. While there are still some opportunities to negotiate, you may want to wait for more favourable buyer conditions to avoid paying a high price for a fixer-upper along with its heavy upgrade costs.
Consider Upcoming Neighbourhood Improvements
Future planned developments in a neighbourhood can raise or lower the house listing price in Markham as well. If there are plans to build schools, develop roads, or a company will move their offices into the area, the house’s listing price may be higher.
On the other hand, if the local community centre is closing down, businesses are leaving, and grocery stores are empty, you may have an opportunity to pay a lower price for a property. You may have potential to negotiate especially if you’ve determined the house is overpriced and recognize it’s already struggling to sell.
Ask Your Markham Real Estate Agent
Your Markham real estate agent will be your primary source of information when judging a home’s listing price. They’ll be able to find you comparable homes to look at and help you judge the condition of a home. Since they understand the ins and outs of the area, your local Markham agent will also know whether the neighbourhood you’re considering is scheduled for any upcoming improvements.
Martin MacFarlane has lived in Markham and Unionville for over 30 years, and knows how to put his knowledge of the area to work for you. He will have all the information you need to judge a house’s reasonable listing price in Markham so you can master your property purchase in this current real estate climate. Contact Martin today to get started.