{"id":299037,"date":"2024-02-26T16:57:44","date_gmt":"2024-02-26T16:57:44","guid":{"rendered":"https:\/\/wahi.com\/ca\/en\/?p=299037"},"modified":"2024-02-26T16:57:48","modified_gmt":"2024-02-26T16:57:48","slug":"buyer-beware-the-truth-about-real-estate-list-prices","status":"publish","type":"post","link":"https:\/\/wahi.com\/ca\/en\/learning-centre\/real-estate-101\/buy\/buyer-beware-list-prices\/","title":{"rendered":"Buyer Beware: The Truth About Real Estate List Prices"},"content":{"rendered":"

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Some realtors price below market value to spark bidding wars \u2014 especially on homes under $1 million \u2014 but house hunters can try to avoid these scenarios by following a few simple steps.
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By Josh Sherman<\/a>\u00a0<\/span>| 4 minute read<\/p>\n

[\/et_pb_text][et_pb_post_title title=”off” author=”off” date_format=”M j” categories=”off” comments=”off” featured_image=”off” _builder_version=”4.18.0″ _module_preset=”default” custom_margin=”||26px|||” global_colors_info=”{}”][\/et_pb_post_title][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”0px||3px|||” locked=”off” global_colors_info=”{}”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” width_tablet=”” width_phone=”100%” width_last_edited=”on|desktop” custom_padding=”0px||9px|||” global_colors_info=”{}” width__hover_enabled=”off|desktop”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_image src=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF9mZWF0dXJlZF9pbWFnZSIsInNldHRpbmdzIjp7fX0=@” align=”center” force_fullwidth=”on” _builder_version=”4.18.0″ _dynamic_attributes=”src” _module_preset=”default” custom_margin=”1px||29px|||” border_radii=”on|32px|32px|32px|32px” border_radii_tablet=”on|32px|32px|32px|32px” border_radii_phone=”on|0px|0px|0px|0px” border_radii_last_edited=”on|desktop” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.20.2″ _module_preset=”default” text_font_size=”1.13rem” text_line_height=”1.75rem” custom_margin=”-18px||2px|||” custom_padding=”||7px||false|true” custom_padding_tablet=”||7px||false|true” custom_padding_phone=”|15px|7px|15px|false|true” custom_padding_last_edited=”on|phone” text_font_size_tablet=”1.13rem” text_font_size_phone=”0.9rem” text_font_size_last_edited=”on|phone” locked=”off” global_colors_info=”{}”]<\/p>\n

A home is worth what someone will pay, not necessarily anywhere near what it\u2019s listed at.<\/p>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”1px||39px|||” locked=”off” global_colors_info=”{}”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”16px||16px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.20.2″ _module_preset=”default” text_font_size=”21px” text_line_height=”1.6em” header_2_font=”||||||||” header_2_font_size=”36px” header_2_line_height=”1.3em” header_3_font_size=”1.25rem” header_3_line_height=”1.88rem” header_4_font=”|700|||||||” header_4_font_size=”1.25rem” header_4_line_height=”1.88rem” min_height=”158.4px” text_font_size_tablet=”21px” text_font_size_phone=”16px” text_font_size_last_edited=”on|phone” header_2_font_size_tablet=”36px” header_2_font_size_phone=”25px” header_2_font_size_last_edited=”on|phone” global_colors_info=”{}”]<\/p>\n

\u00a0<\/span><\/p>\n

When a young Greater Toronto Area couple saw a spacious four-bedroom detached home in Halton<\/a> Hills listed for $999,999, they couldn\u2019t wait to make an offer.<\/p>\n

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The stunning red-brick home was located in a desirable neighbourhood near a good school, had lots of upgrades including a new kitchen, and featured a finished basement. It was exactly what they were looking for. It was also around their budget, which they had learned didn\u2019t go far enough for a detached home in the city of Toronto. Almost immediately, the couple told their REALTOR\u00ae to place a bid of $950,000 on the home, having heard that many homes were selling under-asking<\/a>. They were excited to see how the seller would respond to what seemed like a good offer in a supposedly quiet market. <\/span><\/p>\n

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[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” background_color=”#edf7f3″ custom_padding=”32px||32px||true|false” locked=”off” global_colors_info=”{}”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”||25px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.20.2″ _module_preset=”default” header_2_text_align=”center” header_2_text_color=”#38505b” header_2_font_size=”2.63rem” header_2_line_height=”3.75rem” max_width=”800px” module_alignment=”center” header_2_font_size_tablet=”32px” header_2_font_size_phone=”21px” header_2_font_size_last_edited=”on|phone” header_2_line_height_tablet=”3.75rem” header_2_line_height_phone=”32px” header_2_line_height_last_edited=”on|phone” global_colors_info=”{}”]<\/p>\n

“A big percentage of the decision is emotionally based \u2014 both for the buyer and the seller.”<\/strong><\/span><\/h2>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”32px||23px|||” locked=”off” global_colors_info=”{}”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”11px||14px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.20.2″ _module_preset=”default” text_font_size=”21px” text_line_height=”1.6em” header_2_font=”||||||||” header_2_font_size=”36px” header_2_line_height=”1.3em” header_3_font_size=”1.25rem” header_3_line_height=”1.88rem” header_4_font=”|700|||||||” header_4_font_size=”1.25rem” header_4_line_height=”1.88rem” text_font_size_tablet=”21px” text_font_size_phone=”16px” text_font_size_last_edited=”on|phone” header_2_font_size_tablet=”36px” header_2_font_size_phone=”25px” header_2_font_size_last_edited=”on|phone” global_colors_info=”{}”]<\/p>\n

Their excitement soon turned to disappointment, though: in a massive bidding war, the listing ended up attracting more than 25 other offers. After just six days on the market, the house sold for $1,350,000\u2014a whopping 30% over asking.<\/span>
<\/span>
<\/span>This scenario isn\u2019t uncommon in the GTA\u2019s real estate<\/a> market. While recent Wahi analysis suggests the overall housing market is in underbidding territory, certain price points are seeing more buyer competition than others. In what\u2019s become a common strategy, some Realtors are opting to list homes in the sub-$1 million range well below their true market value. Realtors use this pricing tactic to try and attract more bids \u2014 and sometimes it works. For example, in a situation similar to the one in Halton<\/a> Hills, a detached home in Ajax ultimately sold for $275,000 over asking. It had been unrealistically listed at $600,000 and attracted 60-plus offers in the process. <\/span>
<\/span>
<\/span>Fortunately, there are a few ways for house hunters to avoid falling victim to lowball listings that aren\u2019t actually within their budget.\u00a0<\/span><\/p>\n

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1. Try Wahi\u2019s Free Home Value Estimator\u00a0<\/b><\/h2>\n

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Wahi\u2019s Free Home Value Estimator<\/a> can save homebuyer hopefuls a lot of disappointment. The tool is based on Wahi\u2019s proprietary home value<\/a> estimation algorithm. Estimates appear alongside each listing, and the tool drills down into a variety of property characteristics for all housing types for a realistic valuation (here are the top six factors<\/a> that affect a home\u2019s value). <\/span>According to Wahi\u2019s estimator, the Halton<\/a> Hills home that was listed for $999,999 but sold for $1.35 million had an estimated value of $1.26 million. While the tool isn\u2019t perfect, in testing it\u2019s proven to be the most accurate in Canada. It can quickly provide a reasonable estimate based on available listing information and should help manage expectations, although it provides too wide a range to use for actual bidding.

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2. Look at Comparables\u00a0<\/b><\/h2>\n

\u00a0<\/span><\/p>\n

Anyone with a Wahi account has access to a treasure trove of data, including previous sold prices. So if you\u2019re looking for, say, a three-bedroom home in a particular neighbourhood, look at what similar properties in the area have sold for recently. For condos, Wahi has launched a new feature on its website and app that shows all units for sale (and that have been sold) in a given building for easy on-the-fly comparisons.<\/span>
<\/span>
<\/span>Of course, every home is unique and certain factors \u2014 such as a major renovation boosting the price or structural issues resulting in a discount \u2014 can mean two apparently alike homes have very different prices. But browsing comparables can help you ballpark the value.<\/span><\/p>\n

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We put the real<\/em> back in real estate.<\/span><\/h2>\n

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Join Wahi today and find out how easy it is to get real estate in Canada.<\/span><\/p>\n

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