Listing Price, Negotiation and the Actual Sale Price

The prices you see on listing sites are the seller's expectation. The price actually achieved is usually below that, and the gap depends on how fast the market is moving, the home's condition, and how much of a hurry the seller is in.

What does negotiating room depend on?

• Time on the market: A home that hasn't sold for months is most likely priced too high.
• Market direction: Negotiating room narrows in fast-rising periods and widens in slow ones.
• The home's shortcomings: A need for renovation, a missing occupancy permit, or high dues are all grounds for negotiation.
• The seller's situation: A seller in a hurry to sell, whether due to relocation, an inheritance split, or debt, is more likely to flex.

How to make the right offer

1. Compare listing prices per square meter for similar homes of comparable age, size and floor in the same neighborhood.
2. List the home's shortcomings and what they will cost you.
3. Get an independent value estimate; use an appraisal or a reliable valuation tool.
4. Present your offer with reasoning; saying 'the comparables and the renovation cost point to this figure' is more effective than simply saying 'this is what I'll pay.'

Misleading patterns in listing prices

• The same home listed at different prices by multiple agents.
• Gross area presented as if it were net area, which understates the price per square meter.
• Listings priced low to attract attention, with 'that one's gone' said once you go to view it.