It was when Ontario had introduced its foreign buyer tax and the market was clearly starting to cool.
One Tuesday afternoon I got a call from someone who wanted to sell their home. The next afternoon I went over as arranged.
The house was in the Bayview Secondary School district, with a double garage on a square 60-foot lot. Inside, you could see the owners had put real care into it: good-quality finishes, clean and tidy rooms, and some pre-sale staging already done.
For the sellers, it was a house to be proud of. That is exactly why, when talking price, you need to understand their feelings — and, even more, explain the market clearly.
I brought out the nearby sales records and market analysis I had prepared. My judgement was that a reasonable market price at the time was around $1.45 million, and that getting that price would still take work on preparation, presentation and sales strategy.
The sellers agreed at the time and said they wanted to sign soon.
A day later, when I called to arrange the paperwork, they told me they had already signed with another agent.
The reason was simple: that agent said she sold more than a hundred homes a year and earned over $400,000; more importantly, she promised she could sell the house for more than $1.6 million — and for a lower commission.
For the sellers, the choice seemed easy: the same house, well over a hundred thousand dollars more, and less commission — why not?
I wished them well and hung up.
The listing that followed went in another direction:
One week later, it was listed at under $1.4 million to try to draw competing offers.
Three weeks later, with no result as hoped, the list price was changed to $1.6 million.
Two months later, the price was cut to $1.49 million.
Two and a half months later, it was cut again to $1.29 million.
Three months later, it finally sold for just over $1.1 million.
Watching prices move like that was painful.
Of course, you cannot simply say that if they had chosen the other agent, it would definitely have sold for $1.45 million. The market was changing, and no one can guarantee a sale that hasn’t happened yet.
But this case exposes a key question: what was the $1.6-million promise based on? And if the first round of selling didn’t work, what was the next step?
Things that should have been settled before signing ended up as reactive adjustments after listing.
When sellers hear a high estimate, they often take it as a sign that the agent is more confident and more capable. In reality, a high estimate can simply be the easiest way to win a listing. Once the house is listed, moving plans are under way and the sellers’ time is getting short, the pressure to cut the price follows.
Buyers won’t accept a price just because the seller once heard a nice number. They compare nearby sales, the condition of the house and the other choices on the market too.
When you hear “I can sell it for more,” try asking three follow-up questions:
“Which homes that have already sold support this price?”
“Compared with them, what makes my home worth more?”
“If no buyer accepts it, how do we plan to adjust?”
Being able to answer these three questions clearly is worth more than quoting a nice number.
— Ming
