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.