Pricing Your Condo or Loft Right the First Time

There are very different tactics used when pricing a house versus pricing a condo or loft. Houses use frontage and depth as a base price for land value and then adjustments are made for the actual dwelling. The physical house can vary in value based on its age, quality, renovations, functionality, which way it faces and surroundings. If it is in really bad shape and has to be torn down it can actually detract from the land value. On a house it is good to get a pre-inspection done so that there are no surprises when you come to looking at offers.

It is important to list your condo or loft at the right price right from the beginning. Your property should priced close to what you think it will actually sell for. This might seem obvious but you would be surprised at how many clients what to try a higher price first. They think this will ensure that they do not leave any money on the table, but in actuality this is what causes a client to loose out.

The first 21 days after the property gets exposed to the market is the most important time. This is the period in which you will get the most for you condo or loft.

Condo and loft properties rely heavily on previously sold properties price per square foot. Adjustments are made for the differences in time since the last sale, size, location in building, view, layout, outdoor space, parking, etc… Every condo building is fairly unique so price comparisons should remain within the building. Pricing a house gives you a bit more latitude with looking in different parts of a neighbourhood. It is best to compare apples with apples with as few differences as available.

If it has been a long time since a similar property has sold you can look in to a different building or area and see what the percentage increase, or decrease has been over the time period and apply that percentage to your specific property. Sometimes a property is just on the other side of the street but it backs on to the train tracks, so it won’t be a valid comparable. All details must be considered and assessed a value.

After you have done your assessment there are some ways to double check whether it is accurate. It is common for a good Realtor to ask a colleague to come through the property and give their thoughts. This is important if the property is very unique. We sometimes use the cities tax assessments and add a commonly accurate percentage to get the ball park figure. The common percentage is different for each neighbourhood and changes each year.

The average Realtor will be involved in more home purchases and sales in a one year than the typical buyer or seller will be in their entire lifetime. Sometimes pricing is a combination of quantifiable variables and a gut feeling based on exposure and experience. A good Realtor is great with pricing.