Market Analysis: It’s More Than Picking a Price

So, you’re selling your home.

To decide on the right selling price, your real estate agent will have used information available through the Real Estate Board’s Multiple Listing Service (MLS) system to compare your home to others that have sold recently in your area.

Together you’ve gone through the comparables and opted for a price you’re happy with.

You know that he or she will now start marketing your home through the MLS system and advertising it in newspapers and online.

Your real estate agent may also hold an open house and contact other agents to promote your home. But what you may not know is that throughout this process, your agent is continuing to analyze the market to ensure that your home is still well-priced and will recommend adjustments if the situation changes.

Take a couple named Ann and Christopher. Their detached, three-bedroom home was similar to others in their neighbourhood, but Ann and Christopher had renovated the entire upstairs to create a new master suite and built a deck accessed from the kitchen. It had more to offer than did neighbouring homes. So when their agent, Michael, saw that the home across the street was selling for $10,000 less than their home, he was quick to review details of that home, consult with Ann and Christopher, and change the market tactic to emphasize the special features of their property.

When Michael received negative feedback during Christopher and Ann’s open house, he told them and together they decided what to do about it. If there was a rumor of a new highway in the area or a new school to be built, Michael would know about it and could then consider the impact on his clients.

Michael’s job as a real estate agent involved constantly monitoring the market factors and responding accordingly. The result was a quick, successful sale of Ann and Christopher’s home.