It used to be that when a home was listed for sale, it usually sold around that price. The list price is the price you go to market with. It’s what you hoped to get for your home. The starting point for negotiations. A prospective buyer would submit an offer and you’d go back and forth and usually settle somewhere under the price you listed at.
These days, in this crazy market, we are hearing of homes selling well above the list price. Just recently there was a home in Richmond Hill that sold for almost a million dollars over asking. In the Aurora real estate market, while homes have not yet been sold a million over asking, they have been sold for hundreds of thousands over the list price.
What does list price mean now then in Aurora? It changes from house to house. Sometimes its priced artificially low to induce a bidding war to get people to bid high over the list price. Sometimes its priced at where comparable properties have sold.
The list price is determined by the listing agent and the home owner. Sometimes they want a bidding war so they price it much lower than what homes have sold for in Aurora. This can get more bidders and the more bidders the more likely it is someone is going to bid high t get the home they want.
Other times, its priced at where comparable properties have sold for. These can still end up selling well above the asking price. While even a year or two ago in Aurora most agents could tell you before it sold what it would likely sell for, that is a much harder guess to make now.
The list price has now basically become a starting point. Only those who price it unrealistically high are seeing their homes sell below the asking point. Well, so are many who are selling themselves as well but that’s the topic of a whole other blog post. The state of the Aurora real estate market has changed the tactics behind list price.
If you see a home listed at a price that seems too good to be true, nowadays it probably is. Speak to a professional, we can often tell you how far of it is. For example, a home recently listed near $825,000 , we knew it would sell over $900,000. It sold for less than $950,000. While judging what its likely to sell for based on list price isn’t as easy as it once was, you can still get a rough idea.