SOURCE: TheRedPin.com

TheRedPin.com

February 22, 2016 09:30 ET

17,254 Toronto Homes Didn't Sell On the First Try Last Year

Real Estate Reality Check: One in Six T.O. Properties Re-listed in 2015

TORONTO, ON --(Marketwired - February 22, 2016) - It's hard to believe that in Toronto's red-hot real estate market, a surprising 17,254 properties -- or one out of every six GTA properties on the market -- were re-listed (at least once) last year. Independent research by TheRedPin.com confirms that despite the never-ending rise in demand, some properties need at least two tries to sell. While buyers can benefit from price drops on re-listed properties, research shows that sellers suffer by reducing asking price on a second listing and lose time dragging out a final sale. 

According to TheRedPin.com, properties re-list for a shocking average of nearly $24,000 less than the original asking price. While it may seem tempting to pull a listing off the market and re-list on hopes of better offers, the smart money is with selling on the first listing.

TheRedPin.com polled its agents, and 89% agreed that many homeowners are emotional and over-value their home for sentimental reasons when pricing.

"Sellers and agents should leave it all on the field to sell properties the first time around," said Rokham Fard, Co-Founder and CMO of TheRedPin.com "It's tempting to try and re-list to get fresh offers but our research shows you'll likely settle for a significantly lower asking price with a second listing."

Avoiding a Re-Listing Regret:

Asked the top five reasons sellers are forced to re-list, TheRedPin.com's Agents offered the following suggestions to ensure success on the first try:

1) Price advice: Agents suggest that sellers refuse their professional input on pricing due to their emotional connection with the home, and end up setting an unrealistic asking price. Taking the emotion out of the equation will ensure realistic price setting and up the odds of selling success.

2) If you list it they (won't) come: Agents suggested clients are convinced that "someone will come along and pay the price that they've set," despite advice and evidence to the contrary. Sellers are better off adjusting the price sooner, rather than re-listing later.

3) Not seeing the big picture: Agents say that sellers refuse to fix a small and inexpensive issue with the property, but small fixes can mean big advantages. Better to invest in repairs than to drop $24,000 on the re-listed asking price of your home.

4) Staging = sales: Agents suggest that staging and keeping it clutter free makes a big difference in the sale of a property.

5) Closed door policy: A number of agents point out that if you can't see the property, they can't sell it. Refusing to do showings or severely limiting time to do so makes it extremely difficult to close a deal. If you commit to selling, you're best served to show it to as many buyers as possible.

The full results of TheRedPin's Re-List Research can be found by clicking here or visiting: goo.gl/G7XBuw.

About TheRedPin:

TheRedPin connects people, data and technology. Our platform carries the largest database of active residential listings in the Greater Toronto Area, with plans to expand nationally. We are a challenger brand, with a unique business model that streamlines the real estate journey, and provides exceptional end-to-end services and benefits, not found at other traditional brokerages.

Founded in 2010, four friends recognized that the real estate industry might be the only sector not influenced by technology. The four saw this as an opportunity to reinvent the way people bought and sold properties, more specifically the way homes were searched. Today, TheRedPin is much more than that.

We are a tech start-up that doesn't answer to the industry, we answer to our clients and ourselves.

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