CREA Discourages Unrealistic Listing Prices in Home Selling

Demand for housing in most Canadian markets continues to outpace supply and increasingly, disappointed buyers and REALTOR® members are voicing their frustration to the Canadian Real Estate Association (CREA) and provincial regulators about the use of advertised listing prices that bear no reasonable relationship to a selling price a seller may be prepared to accept in an attempt to generate additional offers.

Ultimately, a home’s listing price is part of a marketing strategy and is set at the direction of the home seller. That said, “We’re concerned that a small minority of sellers and their advisers may be seeking to engineer bidding wars based on advertised listing prices, in some cases as low as $1, that bear no relationship whatsoever to what a seller may be willing to accept for a property,” CREA CEO Michael Bourque announced in a statement. “These types of listings can distort the market in significant ways: by failing to give any indication of the seller’s expectations; by dissuading prospective buyers from making an offer and in discouraging good faith offers based on unrealistic advertised listing prices. These distortions can create real costs for consumers and REALTORS® involved in transactions.”

REALTORS® are a trusted source for Canadians buying and selling real estate. Choosing not to give any indication of a price that a seller may be willing to consider does not reflect creditably on the real estate profession and impacts the accuracy of our data.

“While the listing price is ultimately a decision for the seller, we encourage REALTORS® to advise their clients to advertise properties based on market conditions and realistic seller expectations,” says Bourque.

Real estate is regulated provincially, so check with your provincial government and/or regulator for further guidance.

Author: bramptonrealestateboard

At the Brampton Real Estate Board (BREB) we believe in the ownership of Real Estate. Our objective is to contribute to the capability and growth of our members in their endeavors by marketing all forms of real property throughout the greater Brampton, Halton Hills and Caledon marketplaces and beyond. The Brampton Real Estate Board is dedicated to providing an environment in which it’s Member REALTORS®, employees, Board of Directors, and Committee volunteers are encouraged to grow, succeed and develop in order to provide the highest level of professional conduct and service.

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