In today’s Toronto real estate market, it’s increasingly common to see properties listed at prices well below their actual market value. These artificially low prices, often posted without an offer date, can mislead buyers into believing they’re getting a bargain. However, in reality, these low prices are simply a tactic to attract more attention and increase the number of showings. For sellers, this creates a challenge: how do you price your property accurately in such a market?
Artificially low listings distort the perception of value for serious buyers. If your property is listed at a fair market price, it may appear overpriced in comparison to others, even though those lower listings are not reflective of the real selling prices. Therefore, sellers need a strategic approach to ensure their property stands out and doesn’t get overshadowed by these misleading offers.
Step 1: Understand the Tactics Behind Fake Low Listings
Many sellers and their agents list properties at artificially low prices to spark a bidding war, especially in hot markets like Toronto. This strategy works by generating interest and driving multiple buyers to make offers, ideally pushing the final sale price well above the listing price. However, these “fake” low prices can confuse both buyers and other sellers.
As a seller, these low listings can create a false expectation for potential buyers regarding what homes in your neighborhood are worth. If your property is priced fairly, it might seem high compared to the artificially low listings. That’s why it’s essential to understand how these tactics work and prepare accordingly.
Step 2: Call Listing Agents and Gather Real Information
One effective approach is to contact the listing agents of these seemingly underpriced properties. This allows you to get an insider’s perspective on the real asking price or seller expectations. Most importantly, you’ll find out if the property will truly sell for the listed price or if the seller expects much higher offers.
By having this information, you’ll be able to accurately position your listing in the market. Rather than reacting blindly to lowball listings, you’ll know the true competitive landscape and can set your price accordingly. This approach ensures that your property remains competitive while also reflecting its true value.
Step 3: Set a Realistic Price Based on Market Data
Once you’ve gathered enough information from local agents and listings, you can move forward with pricing your property. When setting your price, it’s crucial to account for the overall market trends and the realistic expectations of buyers in your neighborhood.
A prime example of this strategy in action comes from Leo Shiu, one of Toronto’s top real estate agents. While selling a condo in a market filled with low listings, Leo noticed that many properties were priced far below their true value. Upon contacting other agents, he learned that these listings were bait prices, designed to spark interest. Armed with this knowledge, Leo listed the condo at a realistic, higher price. Despite the surrounding low listings, the condo sold immediately, validating the importance of pricing based on real market expectations rather than following the crowd.
This case highlights why it’s crucial to not only look at listing prices but to dig deeper and understand the actual selling trends in your area.
Step 4: Balance Competitiveness with Value
Pricing your property competitively doesn’t mean underpricing it to match artificially low listings. Instead, it’s about finding the sweet spot where your listing reflects the true market value while still drawing attention from serious buyers. One way to do this is by showcasing the unique features of your property, making sure that potential buyers see its true worth beyond just price comparisons.
For instance, focusing on the quality of the property, recent renovations, and its location will help justify the price in the eyes of buyers. If your property stands out for reasons beyond price, you’re more likely to attract the right buyer who sees the value.
Why Work with Leo Shiu?
Leo Shiu is one of the top listing agents in Toronto and surrounding areas. With 18 years of experience, Leo has helped clients overcome the challenges of selling properties, especially those with legal or financial complications. His strong negotiation skills and ability to refresh marketing strategies give him an edge. Leo taps into various buyer networks, making him the ideal partner for sellers looking to relist and succeed, even in tough situations like condo lawsuits.
Pricing your property accurately in a market flooded with fake low listings can be tricky, but it’s not impossible. By understanding the tactics behind these low prices, gathering real market data, and working with a skilled agent, you can set a price that reflects your property’s true value and ensures a successful sale. Don’t let misleading listings affect your strategy—focus on market knowledge and accurate pricing to attract serious buyers and achieve the best results.