Pricing a home low to spark a bidding war has long been a go-to strategy in the Toronto area, especially when demand far outstripped supply.
But in today’s slow market, this approach is often doing more harm than good.
Even now, the nicest 10 to 15 percent of listings, the truly standout homes or those with rare features like oversized lots, still attract a lot of attention and multiple offers. For those homes, pricing low can still make sense.
The problem is that over a third of Toronto homes are still being priced below market value in hopes of creating a bidding war, and for most, the strategy is failing.
Here’s what’s happening:
Homes get 10 to 15 showings, maybe two or three offers, but those offers are typically at the low end of the home’s value range. Buyers are cautious and conservative, and sellers, seeing limited activity, are accepting these weak offers on offer night.
Even pre-emptive offers, which used to come in strong, are now far more timid, and many sellers are still taking them.
In short, what once pushed prices up is now dragging them down.
For most sellers who don’t have one of those rare, standout homes, a better strategy is to price at the higher end of fair market value and be patient.
There’s no guarantee the home will sell at that number, but waiting for the right buyer is often better than settling for the first low offer that comes along.
John Pasalis is President of Realosophy Realty. A specialist in real estate data analysis, John’s research focuses on unlocking micro trends in the Greater Toronto Area real estate market. His research has been utilized by the Bank of Canada, the Canadian Mortgage and Housing Corporation (CMHC) and the International Monetary Fund (IMF).
Have questions about your own moves in the Toronto area as a buyer, seller, investor or renter? Book a no-obligation consult with John and his team at a Realosophy here: https://www.movesmartly.com/meetjohn
October 8, 2025
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