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How To Use Leverage When Selling Your Home

Posted by John Benjamins on October 24, 2017
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A Buyer recently commented at one of my open houses that the “local market is unstable and volatile.” It’s a common perception but not entirely accurate. The truth is, real estate markets are always in flux, it’s a basic reaction to Buyer and Seller motivation. Typically, one side is more motivated than the other. Although market conditions have improved for Buyers since the spring, locally our market continues to favour Sellers in that there are far more people who wish to buy a home than those willing to offer one for sale. Compared to the five-year average, listing inventory is sitting at 50%. In short, there are only half the amount of homes for sale, compared to what’s normal. A smart real estate team can utilize this to a Sellers advantage.

When Benjamins Realty markets property, our approach is to use favourable market conditions to leverage negotiations. What is leverage? It’s a form of external pressure created by overwhelming Buyer response.


If two parties are negotiating, one Selling and one Buying, the strongest contributing factor determining how motivated that Buyer will be is almost entirely driven by their perception of how likely it is someone else could also offer on the property and buy it. Benjamins Realty excels at creating these types of conditions. When Buyers come through our open houses and see a steady stream of traffic, they begin to feel pressure, when Buyers gear up to make an offer and find out three other parties are doing the same, they begin to feel the pressure. This leads to the highest and best offers being given, and ultimately the highest possible sale price for a home in the given market.

How does Benjamins Realty create these types of conditions? There are three basic principles we adhere to in order to create Seller leverage, Valuation, Presentation, and Negotiation.

Valuation: Your home must be listed at a price that is very attractive and even a little under market value. It may feel strange, but the principle is fundamental. Buyer motivation is what creates higher prices, one of the most effective ways to generate motivation is by listing at an aggressive price point, let the demand drive the home upwards.

Presentation: This is directly connected to valuation. By creating an attractive list price, you’ve caught their attention, now is the time for a stunning and dynamic presentation of your home. Professional photography and videos, home marketing consultations with interior designers, and expert advice to maximize the presented character and style of your home.


Negotiation: We’ve created a strong demand through valuation and presentation, now Benjamins Realty will utilize that pent-up energy to leverage negotiations to peak sale price for the homeowner. We’ve been doing this for 35 years in Kitchener Waterloo. You can trust our family’s experience.

Are you a Buyer who has felt frustrated by these types of tactics? Please read our companion guide “Tired of Losing in Negotiations?

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