During the past few years there has been a lot of fluctuation in the prices of condos and lofts in the Toronto luxury real estate market. Pricing a luxury condo or loft in Toronto correctly can be very difficult for inexperienced realtors.
One of the most important aspects of working with Toronto luxury real estate sellers is getting the pricing correct. When my clients see eye to eye with me, it makes it very easy to get their home priced correctly, which ultimately results in a speedier sale for top dollar.
Frequently in the luxury real estate world sellers will overprice their condo or loft, which can be disastrous. They think they can always reduce it later, but this is a terrible strategy.
I always tell my clients that I am going to be brutally honest and price their condo or loft correctly right from the get-go. Many realtors will agree with an inflated price just to get the listing, hoping that the seller will agree to a price reduction once the listing sits on the market for a while. The seller will soon realize the condo or loft is overpriced, and then they will fire that realtor for suggesting the incorrect list price.
On many occasions I have walked away from a potential listing, when a seller insists on incorrectly pricing their condo or loft, only to be hired after the fact with my original suggested list price. I always price my listings accurately the first time, so that my clients are always happy when their condo or loft sells as quickly as possible.
Square Footage vs. Building Location
It’s very important that sellers recognize that the square footage of the condo or loft is not as important as the location of the building. The location, especially in luxury neighbourhoods in Toronto, is where the real value is.
You want to compare the square footage of the condo or loft to other units in the same building. This is a major driving factor in the final price of the condo or loft. Everyone wants to get as many square feet for their money as possible.
Location, Location, Location
Location is always the most important factor when determining a list price. A condo or loft in Yorkville is going to sell for a lot more than a condo or loft in North York. Area codes can be trendy, so it is important to have your finger on the pulse and to know not only which neighbourhoods are hot, but which buildings within those neighbourhoods are selling for the highest price.
I always advise my clients to pay for a better location, because in a five to ten years it will be worth a lot more than a condo or loft in a less expensive neighbourhood.
Luxury Amenities
Luxury amenities are either hit or miss for most buildings. While some buildings are updated with the latest and greatest, it’s important to remember that the amenities will probably be outdated in as little as ten years. Many of the condos and lofts that I sell may not have newly added amenities that factor in. How recent these additions are can play a big factor in the final price of a unit.
Renovations (Future Proofing Your Condo or Loft)
Last but certainly not least is the concept of future proofing your condo or loft. This is where the client spends money to upgrade the condo or loft to the current trends in things like a new kitchen, new bathrooms, new flooring, and other renovations.
I advise my clients to go big on renovations or leave it alone. Do everything or don’t do anything at all!
If you focus on the major rooms such as the master bedroom, the kitchen, and the living room – you will certainly increase the value of your condo or loft and get a huge return on your investment.
Interior Design
Interior design, when done correctly, can add immense value to the list price of a condo or loft. Good interior design can make potential buyers feel like they’ve just entered into their dream condo or loft, whereas outdated tiles, counters, and other finishes can make the unit seem like it’s overpriced.
What’s Your Condo or Loft Worth?
Hopefully this information has helped you to think about how your condo or loft measures up in the current market. Of course, I’d love to help you find out exactly how much your Toronto condo or loft is worth, and give you a fair assessment of what you can realistically expect when you are ready to sell.
Even if you aren’t ready to sell today, it’s always good to have a general idea, so that it can help inform your decision making in the future.
Also, if you are in the market to buy a Toronto condo or loft right now, this information can help you understand the different aspects of a buying a condo or loft that you should consider to ensure a wise financial investment.
If you want to buy or sell a Toronto condo or loft, contact Casey Ragan at 416-486-5588 or by email at casey@remaxhallmark.com
Casey Ragan
“Toronto’s Condo Authority”