When it comes to selling real estate in Ontario, pricing your home correctly from the start is crucial. While it might be tempting to “test the market” with a higher asking price, overpricing can be one of the most expensive mistakes a seller can make. In today’s market—whether balanced, hot, or cooling—a misstep in pricing can lead to lost time, reduced interest, and ultimately, a lower sale price.
The Illusion of “Wiggle Room”
Many sellers believe that pricing high gives them room to negotiate. In theory, this seems smart: start high and settle where you want. In practice, however, this strategy often backfires. Buyers today are informed and data-driven, using MLS listings and online tools to compare homes. If your property is priced significantly higher than similar ones in your neighbourhood, it can be quickly dismissed as unrealistic.
Worse yet, homes that linger on the market develop a stigma. When buyers see a property has been listed for weeks—or months—they assume something is wrong, even if it’s just the price. That stigma reduces perceived value and weakens your negotiating position.
Reduced Traffic = Fewer Offers
In Ontario’s competitive real estate market, especially in cities like Toronto, Mississauga, Ottawa, and Hamilton, the first two weeks of a listing are critical. That’s when you get the most eyes, showings, and serious inquiries. If you price too high, potential buyers may not even book a showing, assuming it’s out of their budget or not worth the cost.
This reduced interest can lead to a snowball effect. Without showings, there are no offers. Without offers, there’s no pressure on other buyers. And as the listing ages, it becomes increasingly difficult to generate the excitement needed for a strong sale.
Price Reductions May Signal Desperation
Eventually, overpriced homes often need to drop their price to attract attention. Unfortunately, this puts the seller on the defensive. Price reductions can signal desperation or suggest that the seller is out of touch with market realities. Buyers may sense opportunity and offer even less, resulting in a final sale price lower than what could have been achieved with correct pricing from the start.
Carrying Costs Add Up
Every extra week your home sits on the market costs money—mortgage interest, property taxes, insurance, utilities, and maintenance continue to add up. For vacant homes or investment properties, these costs are even more burdensome. Over time, they eat away at your net profit.
Trust the Market, Trust Your Agent
The best approach is to rely on a Comparative Market Analysis (CMA) prepared by a local real estate professional. These reports analyze recent sales, current listings, and local demand to determine a strategic price point that will attract qualified buyers while maximizing your return.
Your goal should be to spark multiple offers or, at the very least, strong early interest. That happens when buyers feel the price reflects fair market value. In Ontario’s evolving market, realism wins over optimism.
Conclusion
Pricing too high may feel like playing it safe, but it’s often a costly gamble. In Ontario, where market conditions can shift quickly, your pricing strategy can make or break your sale. Start smart—price it right, right from the start—and protect your equity.
Brian Madigan LL.B., Broker