Over Asking: “Listing at market value won’t work.” Three agents explain how they sold for more

Interest rates are finally dropping, but experts predict it will take until next spring for the market to jump back into high gear. Until then, savvy sellers are strategically pricing their properties below market value to attract buyers and spark bidding wars. Here, three agents representing three different properties explain how they successfully scored well above asking price.

Related: “Buyers will pay later if they don’t act now.” Three agents share why they sold for less

The Beaches: Kingston Road

The place: A two-storey condo townhouse with a private rooftop terrace Listing price: $1,000,000 Sold for: $1,080,000 Maintenance fees: $801 per month Date sold: August 3, 2024 Bedrooms: 2 Bathrooms: 2 Size: 1,230 square feet Real estate agent: Katia Larivière, Heaps Estrin Real Estate Team

“Stacked townhouses with 20-foot ceilings are rare in the Beaches, and this complex only has seven other units, making this a special property—especially with its private 600-square-foot terrace overlooking the neighbourhood. Still, its loft layout made it less attractive for families, resulting in a smaller pool of potential buyers. Back in February, the owners listed it for $1 million with a different agent, but the winter market was slow, and they received no bids on offer night.”

“This past May, the owners returned to market at $1.17 million, in line with the listing prices of similar homes in the area. But, once again, they couldn’t get any offers. In late June, they enlisted me to try again. I decided to take a new approach. To attract as much foot traffic as possible, I lowered our ask back to $1 million. Our open houses were extremely busy over the next six weeks, and we received three offers over our list price. Still, we turned them down. My instincts told me that if we waited a bit longer, we could find the ideal buyer.”

“Sure enough, in early August we accepted an offer for $1,080,000—$80,000 above asking. Many buyers think they should wait for mortgage rates to drop next year. But, when interest rates go down, prices tend to rise. So, while a house hunter may get a lower rate, they’ll likely end up paying more overall. That’s why I believe now is the right time for buyers to act. The key to long-term value is to move sooner rather than later.”

Stonegate-Queensway: High Street

The place: A two-storey detached with a one-car garage Listing price: $1,299,000 Sold for: $1,445,000 Date sold: August 8, 2024 Bedrooms: 3+1 Bathrooms: 4 Size: 2,800 square feet Real estate agent: Mike Turk

“The two most attractive features of this house were its generous space (nearly 3,000 square feet of living area along with a garage and a backyard) and its prime location—right across the street from grocery stores, cafés and restaurants. On the downside, the place was built 30 years ago, so the dated interior is in need of a facelift.”

“In July, we listed at just under $1.3 million. My strategy was to present the home substantially below its market value to generate multiple offers that would drive up the selling price. And it worked. One week after hitting the market, we got an offer that was $146,000 above asking. It was close to what my clients and I thought was fair market value, so we accepted.”

“This year, listing at market value and negotiating one offer at a time has not yielded good results. But, when owners list below market value, intense competition among would-be buyers often becomes inevitable, raising value on its own. These types of scenarios are common in the current market, so it’s crucial to work with an experienced agent who can provide strategic advice to help you stay competitive.”

Greenwood-Coxwell: Coxwell Avenue

The place: A two-storey semi near Woodbine Park Listing price: $799,999 Sold for: $1,025,000 Date sold: August 13, 2024 Bedrooms: 3 Bathrooms: 2 Size: 1,126 square feet Real estate agent: Shea Warrington
Photography: Negin Milani

“With its front yard, porch and red-brick exterior, this property had terrific curb appeal. It also had a backyard that came with a patio and a shed. It was also a short walk from the lake, Greenwood Park and the many businesses along Queen. By the time we were ready to list, in early August, the market was already well into winding down. I was concerned—a colleague had recently listed a similar semi in the neighbourhood and attracted only 13 showings.”

“To get as many eyeballs on the property as I could, I listed low, at about $800,000. I was apprehensive, but to my surprise, it received 76 showings and 32 home-inspection requests. I also posted a video showcasing the spot, and it got 25,000 views. All this activity resulted in nine offers, including one $225,000 over asking, which my clients accepted.”

“This sale reveals that buyers—and particularly first-timers—are out there in droves. It also demonstrates that having a strategic approach is crucial in this market. As interest rates fall and more purchasers get hungry, merely pricing a place at market value and hoping for the best won’t be enough.”

Are you an agent who recently sold for over asking? Send your story to realestate@torontolife.com.