In A Slow Market, What Does It Take For A House To Sell Over Asking?

In Toronto's sluggish real estate market, some homes are still fetching prices above their asking price. A notable example is a semi-detached house at 87 Berkshire Avenue, which sold for $1,435,000—$286,000 over its $1,149,000 listing price—after just 24 hours on the market. This sale, however, is an exception in a market where the Toronto Regional Real Estate Board reported only 5,011 sales last month, marking the slowest March in 27 years.

The success of 87 Berkshire Avenue can be attributed to a strategic pricing approach. Listing agents Shane Little and Jenny Simon priced the property below its estimated value range of $1.35 to $1.4 million to generate immediate interest and prompt quick offers. This tactic aimed to stand out amid buyer fatigue from similar properties lingering on the market.

Beyond pricing, the agents enhanced the property's appeal by conducting a laneway study, revealing potential for additional development, and marketing the home as a three-bedroom by highlighting a basement room. These efforts broadened the property's attractiveness to a wider range of buyers.

Certain price ranges are performing better in the current market. TRREB data indicates that homes priced between $1 million and $1.5 million accounted for approximately 29% of total sales in the Greater Toronto Area last month. Detached homes, in particular, are in higher demand, representing 43% of total sales.

Neighbourhood desirability also plays a crucial role. Areas like South Riverdale, where 87 Berkshire Avenue is located, continue to attract buyers due to their amenities and community appeal. Properties in such neighborhoods, when priced and presented effectively, are more likely to sell quickly and above asking.

In a market characterized by high inventory and cautious buyers, sellers aiming to achieve over-asking prices must employ strategic pricing, enhance property features, and target desirable neighborhoods. These combined efforts can create the urgency and appeal necessary to stand out and secure competitive offers.