Toronto Real Estate Agents Sold Over-Asking
I keep seeing real estate signs that say “Sold Over-Asking”? What’s the big deal? What does “sold over-asking” mean? Should I care or be impressed?
Cameron Weir and Scott Hanton are asked these questions regularly. The short answer, in a seller’s market like Toronto and the GTA, is no. It is not a big deal at all. It’s little more than a gimmick.
In tougher days and slower real estate markets it was often a big deal to sell a house for more than the minimum asking price. It usually signalled there were one or more interested buyers and a bidding war likely occurred.
There are still some rather unpopular neighbourhoods within Toronto and Durham Region where it actually would be significant to display these signs. Seeing “sold over-asking” might imply that property values in that traditionally slow area of the GTA is picking up, especially if houses on those streets haven’t changed hands for several years.
However, in Toronto and in Durham Region it only means something when the house was listed at a competitive market price and then sells for something like $150,000 over the asking price. (I’m of course proud to say that this sort of super success happens for The Weir Team clients regularly).
Typically, in a competitive market where there are simply too many buyers and not enough good houses we need to list a house at a reasonable list price. Approximate market value for a house might be $525,000 but with so little on the market to choose from it’s possible someone might be willing to pay $625,000 for that house. It’s out of our control as listing agents. The buyers can offer any price that they want to secure the house. And of course any seller would be thrilled to get $100,000 more than everyone thought the house was worth.
In the above scenario we would likely list that house at $499,000 to ensure that enough potential buyers looking in this price range see our listing. It is clear that the house will be sold for over-asking, but by how much is anyone’s guess. Usually sellers with The Weir Team end up seeing a much higher amount of profit once our full-service kicks in and we truly make the house shine.
So for some of the best real estate agents who work in busy areas like Leslieville, East York, Riverdale, Riverside and basically most of the GTA these days, it’s really not a big deal to sell a house for over-asking. The asking price is only the list price.
However, as I mentioned earlier, sometimes it is rather surprising to sell a house for over-asking in much slower markets and on streets where houses rarely come on the market. In those cases, the current local real estate market is still being established. Price limits and actual property values still need to be tested out. The best real estate agents here might be tempted to boast that property values in this Toronto or Durham Region neighbourhood might be more than everyone thought.
Then there is the gimmick aspect. We’ve all got our ways of getting attention and for some realtors, especially novice realtors or realtors who’ve got no other marketing skills or tricks in their bag, this is an easy tactic.
I’ve actually helped clients purchase properties where the listing agent has asked that we purchase the house for one dollar more than the asking price, just so he can boast that the house sold for over-asking.
So does it mean anything when a house is sold for over asking? Nope, clearly not.
What matters are actual selling prices, historical prices and statistics that show significant real estate property values and trends.
At The Weir Team we’re always happy to guide our buyers and sellers to understanding the true value of what they’re buying and selling.
We don’t want you to miss out on potential buyers if we list your house at too high a price. And we also don’t want to insult potential buyers and your neighbours by listing the house too low. Experienced realtors understand the importance of determining the ideal list price.
We’re at your service all across the GTA. We’re Realtors in Pickering, Ajax and Whitby. We’re real estate agents in Leslieville, Riverdale, East York and all over Toronto. We’re proud to be among some of the best real estate agents in the GTA.
Written by Scott Hanton, Real Estate Broker for The Weir Team