Real Estate Talk:
Perils of overpricing

Asking too much may lead to getting less

By Joseph Marovitch

Updated October 1, 2025

I had a client who told me their house was special and required a special buyer. Since the house was special, it was worth more than all the other homes around it. They asked if I was a broker who understood and could sell it on their behalf.

Over the past several years, as a real estate broker, I have heard this several times. Many brokers, starting out, will claim they understand how special the house is and are confident they can sell it at a higher price, ignoring the comparable sales that suggest otherwise.

The broker lists the house and starts with ads and open houses. The first wave of buyers calls and visits, but they also visit other homes with comparable square footage, bathrooms, and bedrooms. Potential buyers often find other homes that are different but equally nice, meeting the criteria they are searching for. The other homes have higher city evaluations with asking prices that are lower than the broker’s special house.

There are no special houses. There is the market that dictates the price.

The process, after a month, consists of telling the client the price is too high, and the client thinks the broker does not believe enough in the price the house should sell for.

The seller goes through one or two other brokers until, after incurring losses from carrying costs and facing public concerns about their house, they sell for less than they would have received at the beginning of the process.

There are no special houses. There is the market that dictates the price. There is a scale ranging from the lowest price to the highest price the house can sell for, based on comparable properties and the property’s condition.

Finally, there are concepts to abide by, such as:

• We do not want the one special buyer. We aim to attract as many targeted and qualified buyers as possible.
  .
• Tactically price the property, based on market conditions, to provide incentive to potential buyers, and elevate the number of inquiries, calls, visits and offers until you have a multiple offer scenario.
  .
• Strategically target the property to an audience specific to the price range and location via local papers, email to people in your network or the broker’s network of potential buyers who the property may appeal to, and mail with flyers to the area where the property is located.

Note that reputable brokers will provide their clients with an accurate market evaluation and a realistic range for the asking price. Then, the broker and seller, together, based on the condition of the property and the seller’s time frame, will determine the proper asking price.

However, should the seller insist on a price above the broker’s scale, the broker will usually not argue, as they do not want to lose the client. In this case, the broker will take the contract and provide the seller with statistics at the end of the month, indicating how many Centris clicks, inquiries, visits and offers the property received.

• If there are many clicks on Centris, few calls, and no visits, this is a clear indication of interest, but not necessarily at the current price.
  •
• If there are few clicks and few calls, this indicates a weak market or a recession. There are strategies to overcome these situations.
  •
• If there are many Centris clicks, calls, visits, and offers, the price is reasonable.

It is also worth noting that if the seller agrees with the broker’s price assessment, the property is likely to sell. If the seller disagrees, the broker will continue, as an overpriced property brings the broker new clients who will not purchase the listing but will provide the broker with an opportunity to show the buyer other properties.

‘There is a scale from the lowest price to the highest price the house can sell for based on comparable property and the condition of the property.’

Finally, after one month of campaigning to sell the house, other brokers, realizing the property is overpriced, will use the property to sell other homes. This is done, for example, by showing the house with a high price and low city evaluation to the buyer and then showing a similar house in the same area with a lower price but a higher city evaluation. Therefore, the buyer acquires more value for less money.

The information in these articles is a summary. If you have any questions, comments, or would like to discuss further, please refer to the comments section at the bottom of the page or contact me directly. As well, to view past articles, click here.

STATE OF THE MARKET

There has been a change since last week. With steady demand for housing, driven by lower borrowing rates and limited inventory, there is increased competition for buyers and favourable conditions for sellers. Property values continue to grow, yet sales are taking place, including multiple offer scenarios.

‘The areas with the most progress in terms of listings and sales are Laval and the South Shore… In general, Quebec is outpacing the rest of Canada in real estate market growth.’

However, according to the CMHC (Canadian Mortgage and Housing Corporation), new listings are up between 16% and 18%. With increasing inventory and low interest rates, the market should balance out if there are no significant economic hiccups due to various geopolitical factors. The areas with the most progress in terms of listings and sales are Laval and the South Shore. These areas are leading the market in a positive direction. In general, Quebec is outpacing the rest of Canada in real estate market growth.

For further discussion, leave a comment or call me directly.

Have a great week.

Let’s not forget that people with cancer are vulnerable too!

You are invited to continue giving to the following organizations, as it’s now more important than ever to support cancer research. Click on the logos below to find out how:

Image: StockPholio

Other articles by Joseph Marovitch
Other recent articles