Setting the Right Listing Price A Key to Maximizing the Sale Price of Your Home

Please find Hudson’s article below as featured on Guelph Today!

Overpricing could backfire as Guelph real estate market hits buyer fatigue, says head of local real estate group.
You don’t have to have much experience in the real estate market to know that listing your house in a seller’s market increases your chances of maximizing your sale price.

That fact has been driving Guelph’s hot real estate market for the last couple of years and has made it challenging for buyers who see competitive bids driving up the cost of purchasing a home.

According to some real estate experts, however, there are signs the market has capped out, which means having a proper pricing strategy could make all the difference when it comes to selling. Read on to learn how to maximize your home sale price.

“In a market with a trajectory like we’ve seen here, it’s very common for list prices to follow sale prices upwards,” said Hudson Smith, head of a local team of Guelph Realtors at the Hudson Smith Real Estate Group. “As we see the market top out, which we have in a number of cases, there’s a barometer established now. People who set their list price based on the most recent sale prices are being challenged. In isolated instances, there are properties where we scratch our heads and go, ‘Wow, that sold for a lot of money’. But we’re seeing buyer fatigue. People are being pickier.”

Hudson said there are many different factors for what he perceives to be a stabilization in Guelph’s real estate market, especially with the busy summer months for real estate on the horizon.

While he doesn’t believe that COVID-19 changed the market in any significant way, Smith says it did create a highly focused consumer group who were excited to set real estate goals and had the time to see them through. He sees that changing as pandemic restrictions ease in Ontario.
 

“I think as we come out of the lockdown, people will be distracted with other activities,” he said. “This is listing season as well, so there’s more supply coming up than before. People can only ignore high sale prices for so long before they decide to list their home. We have a market on an upswing creating more supply. All of these factors could distract what has been a completely undistracted audience of people. What we’re seeing is the need to have a proper pricing strategy when listing. You only have a short window of opportunity to maximize your sale price, so you want to be sure you’ve set the right list price for fast sale.”

If you’re considering marketing your home and your primary goal is maximizing sale price rather than just a quick sale, Hudson says the key is listing your property at a price where the majority of potential buyers see the value.


He says when a market is on the verge of topping out, many people make the mistake of listing their house based on the eventual sale price of similar houses recently sold.


In such instances, Smith says sellers are really setting a price based on the willingness of just one buyer eager to pay more than everyone else, instead of recognizing that 10 to 15 interested buyers felt the price was too high. Thats’ why it’s important to maximize your home sale price with the help of a realtor.


“When prices stop rising, it’s more important than ever to set the right listing price,” he said. “The market won’t lie to you. Your goal is to get a large cross-section of people through to see your house so you have a high conversion rate, which means for a certain number of people through the property, you have a percentage of people actively pursuing the purchase. To do that, they have to see the value. It’s like paying $50,000 for a pool, then adding $50,000 to your list price and expecting someone to pay full value.”


In such an instance, Hudson says a smarter strategy would be to raise the value $25,000 to attract people looking to buy a home with a pool. “You’re creating a better audience because more people will see the value, and when they do, the market for your home starts to rise upwards.”


Ultimately, the market is driven by demand, and Smith says he’s been seeing the first few price drops in a long while as sellers adjust their list price to attract buyers. However, he says there’s no need for sellers to panic.


“We are seeing more homes selling for less than they’re asking, but not all. We’re still seeing lots of multiple offer scenarios. We still have a strong out-of-town audience. It’s simply more important to price where the majority of your audience recognize the value.”


Given the volatility in the market, Smith says there’s one important factor sellers need to consider: it’s never been more important to use a professional Realtor to maximize your sale value.

 


“You still have to have a really good agent working for you. Calls have to be made quickly. To an out-of-town buyer, street names like ‘Baltic Avenue’ and ‘Boardwalk Street’ would mean the same thing, because they don’t know anything about the area. Your marketing material has to be key. You have a limited amount of time to foster the best environment you can, and using a realtor is the best way to do that.”

Top Spots for Tobogganing in Guelph

February 19, 2025
Guelph is a fantastic place to enjoy outdoor winter activities, and tobogganing is one of the best ways to embrace the snowy season. Whether you’re looking for a gentle slope for the kids or a thrilling ride down a steep hill, Guelph has plenty of great options. Here are some of the top spots for tobogganing in the area:  1. Exhibition Park One of the most popular tobogganing spots in Guelph, Exhibition Park offers a great hill with a moderate incline, making it ideal for families and younger children. The park is centrally located and has plenty of space for winter fun. 2. Mollison Park Located in the city’s west end, Mollison Park features a well-known sledding hill that offers a good mix of fun and safety. The hill isn’t too steep, making it a great choice for all ages. 3. Kortright Hills Park For those looking for a longer ride, Kortright Hills Park has a fantastic slope that provides a smooth and enjoyable run. The park’s natural setting makes it a beautiful spot for winter recreation. 4. MacAlister Park Another family-friendly location, MacAlister Park has a gentle slope perfect for younger children who are just learning to enjoy the thrill of tobogganing. It’s a quieter location, making it a great place for a relaxed outing. 5. Riverside Park This popular Guelph park has a designated tobogganing area that attracts sledders from all over the city. The varied terrain provides options for both beginner and more experienced riders, making it a great all-around choice. Safety Tips for Tobogganing Always wear a helmet, especially for young children. Ensure the hill is free of obstacles, such as trees and rocks. Sled during daylight hours or in well-lit areas. Dress warmly and wear appropriate winter gear. Supervise children at all times for a safe and fun experience. These top tobogganing spots in Guelph offer a range of experiences for sledders of all ages. So grab your sled, bundle up, and enjoy the winter season in one of Guelph’s best tobogganing locations!

The Potential Impact of Tariffs on Guelph's Real Estate Market

February 19, 2025
With discussions surrounding potential tariffs on Canadian imports, stakeholders in Guelph’s real estate market are evaluating the possible consequences. If implemented, these tariffs could significantly affect housing costs, development projects, and market dynamics in Guelph and the surrounding areas. Possible Increase in Construction Costs One of the most immediate impacts of tariffs would be rising costs for construction materials such as lumber, steel, and aluminum. Since a large portion of these materials is imported from the U.S., tariffs could lead to price hikes, ultimately increasing the cost of building new homes. If material prices rise, builders may pass those costs onto buyers, potentially adding thousands of dollars to home prices. Industry experts predict that if tariffs are introduced, the additional cost per single-family home could range from $10,000 to $25,000. Potential for Higher Mortgage Rates Economic uncertainty caused by tariffs could influence the Bank of Canada’s interest rate policies. If inflation rises due to increased costs on imported goods, the central bank may opt to raise interest rates to curb inflation. Higher interest rates would directly affect mortgage rates, making borrowing more expensive for homebuyers in Guelph. With rising mortgage costs, buyer affordability could take a hit, leading to reduced demand and a slower real estate market. Those looking to purchase a home may need to reconsider their budgets or lock in rates before any potential hikes occur. Possible Slowdown in New Developments Developers in Guelph may hesitate to launch new housing projects if tariffs increase construction costs. A more expensive development process could lead to project delays or cancellations, tightening housing supply in an already competitive market. If fewer homes are built, demand for existing properties could rise, potentially driving up home prices. This would further strain affordability for first-time homebuyers and those looking to enter the market. Housing Market Uncertainty Even before any tariffs are imposed, the uncertainty surrounding trade policies can impact market confidence. Buyers and investors may adopt a wait-and-see approach, slowing down transactions and cooling off market activity. Conversely, if there is speculation that tariffs will push prices higher in the future, some buyers may rush to secure homes before the impact takes effect. This could create short-term market volatility, with a potential surge in demand followed by a slowdown. How Buyers, Sellers, and Developers Can Prepare Homebuyers : Consider securing mortgage pre-approvals early to lock in favorable interest rates before any potential hikes. If tariffs are implemented, it could make homeownership more expensive in the long run. Sellers : Monitor market trends closely. If tariffs lead to increased costs and reduced affordability, selling sooner rather than later might be advantageous. Developers : Explore cost-efficient alternatives for sourcing materials and streamline construction processes to mitigate potential price increases.  Conclusion While tariffs have not yet been imposed, their potential implementation could bring significant changes to Guelph’s real estate landscape. Rising construction costs, potential mortgage rate hikes, and a slowdown in new developments could all impact affordability and market stability. Buyers, sellers, and industry professionals should stay informed and prepared to adapt to possible changes in the housing market.

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