It is best to set a fair price. Typically, several visits occur from the start of the marketing. It is in these circumstances that there is a possibility of multiple offers and the seller obtains a higher purchase price than the one requested.

The Professional Association of Quebec Real Estate Brokers (APCIQ) has prepared an interesting analysis on the dynamics of price negotiation. They took into account all sales of single-family homes in Quebec, from January 2022 to April 2023.

Price negotiation

While the meteoric rise in interest rates resulted in a sharp drop in sales, the number of properties available for sale on the market rose only very moderately. The level of active listings is still well below the historical average. However, the decrease in the number of buyers on the market has had a direct impact on the price negotiation dynamics of single-family homes sold in Quebec.

Breakdown of sales by type of price negotiation

We returned to a normal proportion of higher bids, with 11% of sales ending with a higher bid of at least 5% above the asking price. This is significantly lower than spring 2022.

Properties sold for more or less 5% of the asking price have gained ground in the last year and now represent 68% of transactions.

“All of this demonstrates the resilience of the market. We can rejoice in this normalization of the market with an increase in sales which are concluded at the asking price. This is a healthy phenomenon, because multiple offers can lead to irrational decisions on the buyers' side and abusive decisions on the sellers' side,” explains Charles Brant, Director of the APCIQ's Market Analysis Department.

Price negotiations and sales deadlines

The asking price has a big influence on the selling time. A property placed on the market at an overvalued price takes an average of 88 days to find a buyer.

At 47 days, it is reassuring to see that sales close to the asking price are made within more reasonable transaction times.

When a property is sold after a process of multiple offers leading to overbidding, the delays are almost always very short.

Highlighting is like Tinder

When two people get ready for their first date, they take care of their appearance. At this meeting, they quickly establish if there is an interest to pursue. We observe the same phenomenon in real estate.

It is from the first minutes of their visit that potential buyers decide whether they want to live there or not. It is essential to condition the space, highlighting the strong points so that the prospective buyer is comfortable:

1. Clean up a lot;
2. Repair minor imperfections: doors, faucets, holes in the walls, etc. ;
3. Paint;
4. Purify and depersonalize your decor;
5. Use home staging .

Marketing

Choose a real estate broker who will meet your needs and who has made several transactions in your area. This broker will offer you a sales strategy tailored to your property.Your property will be present in the Centris collaboration system, the most consulted real estate site in Quebec. Your property is therefore made accessible to nearly 13,000 real estate brokers and their buyer clients.You benefit from unparalleled visibility, both on the web and with the network of brokers, which translates into better chances of selling quickly and on your terms.Don't succumb to the temptation to choose too high a selling price. To sell at the best price, offer a fair price, showcase your home and choose a real estate broker who knows the real estate market in your area thoroughly.