Embedded in the Toronto home-selling process is the mistaken tendency of homeowners to align reason with emotion. When setting the asking price on Toronto condos, it is imperative that the home seller not be swayed through pride of ownership, attachment to the home or the amount initially paid to acquire the property.

The so-called “subjective value” as perceived by the homeowner may diverge greatly from a property’s actual worth or market value, thus causing the home to not be priced competitively. Market value, used by appraisers, functions according to objective and practical property conditions, including: location, comparative pricing for both nearby homes and those with similar features or qualities as well as the overall condition of the economy and real estate market.

Adhering to the subjective value lengthens the amount of time a property will be on the market, as homebuyers are more likely to prefer and purchase larger and better homes in the same price range. Also, should the subjectively-set asking price on a home later be lowered to conform to market norms, this may actually further discourage the sale of the property. Homebuyers may become wary and suspicious as to the reason the home has remained unsold for so long.

As a Toronto real estate agent I know that in addition to setting an objective asking price, it is also important for the home seller to consider every offer given seriously, especially within the first two weeks that the home is on the market. In fact, homes generally get the most attention at the start of their listing term; however, the first offer made is often disregarded by home sellers, holding out in the hopes of receiving a higher offer. This is unfortunate, as often the first offer made is the best offer, and many homeowners have had to settle for selling their properties later on for far less than was offered initially. In the same way that clinging to the sentimental or subjective value of a house is detrimental to the sale of a home, so too is it unwise to allow an offer to be disregarded simply because it was the first.

Written by Elli Davis