Whether you’re selling collectible merch on Facebook Marketplace (remember all the Tim-Biebs swag from last year!) or selling a condo, pricing is key to getting the outcome you want. 

But how do you set a price? Obviously, you want to turn a profit, but you also don’t want to scare away your buyers. Selling a condo in Toronto is a nuanced affair. There are so many factors that go into setting the right price, and there’s so much on the line if you get the price wrong. 

Here’s a closer look at the secrets of pricing your Toronto condo for a faster sale. 

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What Goes into Pricing a Toronto Condo?

Before we talk pricing strategy, we need to understand what actually factors into the price. Choosing a price for your condo is not as simple as pointing out a number, or going with a vibe. But boy, would our jobs be easier if that’s all that you had to do. 

No, instead, pricing is a pretty nuanced formula that takes into account a variety of factors. 

Most agents begin with a comparative market analysis (CMA). What’s that? It’s a look at the recent sales in your area, in the building, similar properties, etc. On Selling Sunset, when you hear them talk about “the comps” this is what they are referring to. 

But that’s just the beginning. Here’s a look at everything that gets considered when pricing a Toronto condo: 

• Where is the building located? 
• What are the building amenities like? 
• What is the condition of the building and the suite?
• What floor is the unit on? 
• Are there condo fees? If so, how much?
• What’s the view like?
• How many bedrooms and bathrooms are there? 
• Is there parking included? What about a storage locker?
• Have there been any upgrades to the unit? 
• What’s the current price/sqft for this building or area? 
• What are other similar condos in the area selling for right now? 
• What type of market are we currently in?
• Is there a demand for condo properties in the market right now? 

Thinking about buying a condo or upgrading your existing condo? Here are some condo upgrades that are totally worth it from a resale perspective. Read more. 

But You Should Get a Say Too! 

Working with a real estate agent to sell your condo gives you a definite advantage since most of the above questions can only truly be answered by a pro in the industry. But it’s not a one-sided conversation. 

Your agent will take into account your unique goals and requests. If you have a number in mind that you want to sell for, it’s encouraged to communicate that with your agent. Their job is not to boss you around, but rather to give you all the information and help you make the best choices based on your unique goals. 

Most sellers want to sell as quickly as possible, for the highest possible price. But sometimes, life throws you a curveball, maybe you’ve accepted a job overseas and the timing of the sale is the most important thing. Or maybe you dream of upsizing to a detached home eventually, you don’t really care when, but you need that big down payment to afford your new dream home. 

Every person is different, therefore every pricing strategy is different. 

Toronto condo living is exciting and dynamic. But it might not be for everyone. Are you on the fence about #condolife? Read these posts next: 

• Toronto Condo Living with Kids: The Ultimate Survival Guide
• 5 Signs it’s Time to Ditch Your Toronto Condo
• 5 Toronto Loft Turnoffs You May Not Have Considered

The Importance of Pricing and Timing 

When selling a condo, it’s critically important to get the pricing strategy right on the first try. The reason for this is that the longer your condo sits on the market, the less action it’s going to get. If we think about it in terms of an activity chart, you’d see a flurry of activity on the listing when it launches, and then the longer it stays on the chart, the activity will start to dwindle. 

The price you set from the get-go will need to be compelling enough to trigger an offer from a buyer quickly so that your condo doesn’t sit on the market for too long. That’s why your pricing strategy is one of the most important parts of selling a condo.

Should I Price My Condo High? 

In a balanced market or a seller’s market, pricing high or slightly above market value might be a good strategy. But, as with everything, there are pros and cons. 

• Pro: You could potentially receive more than the market value for the condo. 
• Pro: If you price high by 2-3%, buyers might be motivated to place an offer and enter into reasonable negotiations. 
• Con: If you overprice the condo, it might turn people off from even making an offer.
• Con: Buyers who are looking in a slightly lower price range might not even consider your condo if it’s priced too high and the condo may stay on the market for a long time.

Speaking of strategy, is it a good idea to time the market? Tick-tock, find out here. 

Should I Price My Condo Low? 

We saw this a lot during the pandemic when many sellers were underpricing their homes all in an effort of spurring a bidding war and getting higher bids. This could be a tricky strategy if it doesn’t work out. Here are some of the main pros and cons: 

• Pro: Your low price attracts a ton of buyers and a bidding war ensues, resulting in a higher offer. 
• Con: If the market favours buyers, your low price might raise some red flags and cause the buyers to look elsewhere.
• Con: You may only get offers on the “low” side and the condo may sit on the market for too long or sell for a lower price than what you wanted.

So What’s the Best Strategy for Pricing a Condo? 

It might not be the answer you hoped for, but in reality, it depends. Everything depends on your unique situation, your unique comfort level, and your unique goals and aversion to risk. Pricing a condo for sale is not a black-and-white situation. It takes considerable research and the final listing price is a blend of your input, your agent’s expertise, market research, comparative property research, and more. 

At the end of the day, the best strategy is working with an experienced Toronto real estate agent who knows the market, can read buyers, and negotiate for your best interests. 

Looking for more insight on buying or selling real estate in Toronto? Give me a call or text me at 647-973-8392.