| To determine your initial price for the property work | | | | factor to your advantage during the negotiation. |
| with your real estate agent to understand the fair | | | | #4 Why is it For Sale? - Price is not affected by the |
| market value of the property. To establish a fair | | | | vendors motivation to sell. Willingness to negotiate |
| offer price use the factors outlined in this article to | | | | however is greatly affected. If an owner needs to |
| help calculate any increase or decrease in value. | | | | sell your chances at price negotiation are greater. |
| Be sure to keep your fair price determination to | | | | By the same token, if an owner does not really need |
| yourself. If your Toronto real estate agent is a | | | | to sell then your chances of negotiation are minimal. |
| dual-agent or subagent they are obligated to tell all | | | | Then the motivation for selling is strictly profit you |
| parties if they know. If however they are a buyer | | | | will find you need to pay a significant premium to |
| agent then that information is safe to share with | | | | obtain the property. |
| your Toronto real estate agent. | | | | #5 How Much Did it Cost the Owner? - Although the |
| #1 Understanding the Market - Looking at similar and | | | | price the current owner purchased the house at does |
| recent sales in the area is key. Feel free to look at | | | | not affect the current market value it may affect |
| past sales but keep in mind how much the market | | | | your offering price. But do not become fixated on |
| has fluctuated since then. Look at similar markets too. | | | | what the vendor paid for the property. |
| If there have not been any recent sales in your | | | | #6 Any Home Improvement Costs to Consider? - |
| neighborhood venture over to a comparative one | | | | Money spent on major improvements to the house |
| nearby. | | | | need to be considered. Your Toronto real estate |
| #2 How is the Current Market? - In a slow buyers | | | | agent can help you account for things like new |
| market the vendor will be more giving during | | | | flooring, extra rooms, renovated kitchen, etc. |
| negotiations. Contrastingly in a hot sellers market | | | | #7 Will Money Need to be Spent to Improve |
| your offer needs to be generous to even be | | | | Property Conditions? - Evaluate the property |
| considered. | | | | condition. Your offering price should be affected by |
| Toronto, however, is generally a balanced market | | | | money that you will need to put in to make any |
| where there is not a set advantage to bidding either | | | | improvements. To help assess the situation a home |
| your minimum or maximum up front. It can be | | | | inspection should be done before you make your |
| difficult to decide on your negotiation strategy in a | | | | offer. |
| balanced market, one approach is to allow other | | | | #8 Costing Out Conditions - You will need to use a |
| offering price factors help you choose. | | | | premium dollar to attract that vendor if your offer is |
| Although it is very difficult for anyone to accurately | | | | conditional upon any contingencies. Some conditions |
| predict market changes, asking your Toronto real | | | | will cost you more than others. Speak to your real |
| estate agent for their thoughts can help you | | | | estate agent to understand the price implications of |
| determine if the market is in transition. Even during | | | | your desired conditions. |
| lengthy periods of balanced market spontaneous | | | | #9 Multiple Offer Bidding War, What To Do - In |
| activity can occur causing times of instability or | | | | general the price you are willing to pay should not be |
| inactivity. | | | | affected by a bidding war, only your pricing strategy. |
| #3 How Long has it Been Listed? - Generally the | | | | Your best bet is to figure out your maximum offer |
| longer a property has been on the market, the more | | | | price and stick to it, you need to be prepared to |
| willing to negotiate the vendor becomes. Use this | | | | walk away. |