There are some critical differences between what is commonly referred to as a “Record Price” and what is in fact “Overpriced”. It is important to understand these differences when navigating the serious challenges that we face in today’s market.
A Record Price is the current, highest amount paid for a property above the last benchmark sale. It is the normal trend upwards in sale prices in a seller’s market.
Overpriced is something ridiculously priced, without comparable sale or reasonable justification.
When properties are overpriced in a specific market or condominium building, it does a disservice to all owners, ultimately bringing everyone’s price down by eroding the trust and reasonable market of buyers for that location.
Overpricing sets off an imbalance that can only be corrected by multiple realistic sales to re-establish the benchmark price.
Studies have shown that overpricing your condo by 10% will cut your potential buyer pool in half. Doing so by 15% will cause you to lose 90% of your potential buyers!
Buyers today are well-informed.
Today, buyers have more access to free information than ever before. Buyers have done their research and have a ballpark idea of what condos in your building are worth.
Furthermore, buyers associate list price with renovation quality. If your condo has not been renovated to the standards of other condos at the same price, you will lose the trust of buyers and lose market credibility.
Banks are also cracking down on appraisals, so, for example, if you were to sell for $1.7M but the bank appraised the suite for $1.6M, the buyer would have to come up with the differential on their own, outside of the deposit, down payment, and mortgage. Too many deals have fallen apart over this lately in the Greater Toronto Area.
The longer your condo sits on the market, the less leverage you, as the seller, will have as a result.
I have been selling for 25-years at Palace Place, longer than any other realtor, and I am also an owner at Palace Place.
It pains me to see how other realtors with no skin in the game whatsoever can ruin all the good work done to elevate our prices by overpricing Palace Place properties. These efforts will only erode the market credibility of Palace Place longterm. For what reason? They will not achieve their desired price, especially in today’s market, and the process of setting benchmark prices will need to start all over again.
To this date, I have set the most record prices for Palace Place, including the highest price per square foot of $1,138 for a renovated suite.
So, while other realtors list on MLS and hope for the best, I am out there every day ensuring buyers fully understand all these important facts and all the wonderful things that Palace Place offers.
Because of these efforts, and my efforts on the Board, Palace Place’s 2021 average price per square foot was $914 as compared to Palace Pier’s average price per square foot of $606, which demonstrates that older condos sell for much less in an area where brand new condos have gone as high as $1,660 per square foot.
I have also been the #1 top selling realtor in Humber Bay Shores since 2016, which allows me to give prospective buyers greater insight into other properties that they might be considering in the area and why Palace Place is the better choice.
For sellers, contact me today to have an open discussion on how to get the best price possible for your suite in today’s market.
For buyers, contact me today so that I can guide you through all the market realities so that you can make the most informed decision in purchasing a property.
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Read about the Palace Place record price per square foot below.
Luke Dalinda, Realtor. Royal LePage Real Estate Services Ltd., Brokerage.