Sold Over Asking Price vs. Sold Over Fair Market Value!

[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][fusion_text]

[/fusion_text][/fusion_builder_column][fusion_builder_column type=”1_1″ last=”yes” spacing=”yes” center_content=”no” hide_on_mobile=”no” background_color=”” background_image=”” background_repeat=”no-repeat” background_position=”left top” hover_type=”none” link=”” border_position=”all” border_size=”0px” border_color=”” border_style=”” padding=”” margin_top=”” margin_bottom=”” animation_type=”” animation_direction=”” animation_speed=”0.1″ animation_offset=”” class=”” id=””][fusion_youtube id=”https://www.youtube.com/embed/FdeZLznRxQ4″ width=”600″ height=”350″ autoplay=”no” api_params=”” class=””/][fusion_text]

How often have you seen a Real Estate FOR SALE sign on a lawn that says sold over asking?

How often have you seen news coverage that says the market is on fire because everything is selling for over asking price?

We all know that hype cells.
Excitement cells.
People like to get excited.

But if you are making an important decision as to whether or not you should sell your home, then if your decision is based on the lawn  signs you see, or headlines & hype, then please remember there is a HUGE difference between selling over asking price and selling over fair market value.

If fair market value for your home is $900,000 but you listed it at $825,000, to try and generate multiple offers, but you sold for $875,000, then you sold for $50,000 over asking price but still less than fair market value.

In the greater Toronto real estate market that scenario rarely happens.
But what can happen more often is your home might be worth, if we use the same example, $900,000 and you might listed at $850,000, still hoping to generate multiple offers.

And then you do get multiple offers that will ultimately take your selling price $50,000 over your asking price and so you do get fair market value.

So if you think about it, after all the hype you still sold for fair market value.

Yes, there are bragging rights for selling your property $50,000 over asking price because the property and the Realtor did generate a lot of interest, and at the very least two or more people wanted to bid on your property.

But I never see signs or hear people bragging that they sold for fair market value.

That is because these days, as of the date this video is recorded, and also for the past several years, the demand in our Toronto real estate market has far exceeded supply.

So if you have a good Realtor then you should always sell for fair market value.

Instead of seeing signs and headlines that say sold over asking price, I would like to see signs saying sold over fair market value.

That is ultimately what every seller wants.
Don’t get me wrong. Many homes over the past few years have sold for and still do sell for fair market value.

But in today’s VLOG about Toronto real estate I am just educating you on understanding the marketing height and the headlines.

If you are thinking of selling and basing your decision on market hype sometimes understanding the key differences in just one word can be very important to understanding what your house is worth or real estate market activity.

And finally, in the examples I just used, the homes were under priced with the intention of generating multiple offers.

If you would like to know more about under-pricing strategies and/or the risks related to those strategies, you can check out my VLOG called:
“Are There Risks of Underpricing Your Home When You List![/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]