The Truth About Price Reductions: When (and When Not) to Lower Your Price in Toronto

If your home is on the market in Toronto and you’re not seeing any offers, it’s only natural to start considering a price reduction. This is often the first suggestion sellers hear. But is it the right move for you?

In our experience, a price drop can be a smart, strategic decision—but it can also backfire if done too soon or without a clear understanding of the market dynamics. Before you decide to lower the price, let’s take a step back, assess what’s really going on, and make a choice that aligns with your goals.

Let’s discuss when a price reduction makes sense—and when it doesn’t.

The First 7–10 Days Are Critical

When your home first hits the Toronto market, that’s when it garners the most attention. It appears in saved searches and catches the eye of motivated buyers who’ve been keeping an eye on listings. If your property doesn’t gain traction during this early window, it usually indicates that something’s off.

Sometimes the issue is pricing. But just as often, it’s about how the home is presented or how widely it’s marketed.

If the photos don’t highlight your home’s best features, if staging wasn’t done effectively, or if the marketing didn’t reach the right audience—dropping the price won’t resolve the underlying issue.

That’s why we always adopt a strategic approach, especially during those crucial first days.

What the Data Is Telling Us

We’re not alone in noticing an uptick in price reductions lately.

In Canada, data from CREA indicates that roughly 30% of listings in early 2025 were reduced before selling, particularly in higher-priced urban markets like Toronto where buyers have more options.

The key takeaway here is that homes with multiple price cuts tend to sell for less than those that were priced correctly from the outset. If reductions are made too late or too frequently, it sends a message that something’s not right with the property.

That’s not the impression we want associated with your home. Accurately pricing your property with your real estate agent's professional insights and guidance isn’t just a step; it’s a crucial strategy for launching your listing effectively, attracting offers, and securing the best possible price.

When a Price Reduction Makes Sense

There are definitely times when adjusting the price is the right call. Here’s when we’d recommend it:

• You’ve had consistent showings, but no offers. This often means buyers see the home as a potential match—but not at the current price.
• Similar homes nearby have sold—and yours hasn’t. If the comparable sales are clear, buyers are making comparisons, and we’re out of alignment.
• The original list price was more aspirational than strategic. This can happen, especially if you launched with expectations based on last year’s market highs.

In these situations, a well-calculated price adjustment—alongside a fresh marketing push—can help reignite interest and get your listing back in front of serious buyers.

But…

When You Should Hold the Line

Sometimes, it’s not about the price. Dropping it won’t necessarily fix the problem.

Before we suggest any adjustments, we’ll ask:

• Was your home marketed to its full potential? High-quality visuals, compelling listing copy, and targeted exposure are essential. If those elements were lacking, we’ll address those first.
• Were showings easy to book? If buyers couldn’t get in—or had limited availability to view the home—we may not have seen the full demand yet.
• Were early offers dismissed too quickly? We’ve seen sellers turn down strong offers simply because they didn’t match the list price. The first offer often starts the conversation, not ends it. With the right counter and data-backed negotiation, we can still reach your desired outcome.

Lowering the price hastily, without adjusting your overall strategy, can backfire. It's not just the price that matters; it’s how buyers perceive the value they’re getting.

What We Do Instead

Before making any moves, we take a moment to audit everything:

• We review the photography and staging. Are we showcasing your home’s strongest features?
• We look at buyer feedback. What’s coming up in conversations or showing reports?
• We relaunch marketing if needed. If the first round didn’t gain traction, we’ll try again—with fresh eyes and renewed energy.

Sometimes just repositioning the listing—without changing the price—can make a significant difference. We’ve had properties sell at full asking price after we updated the photos, reworded the description, or changed our promotional strategy. It’s not always about the price; it’s about how the home is presented.

The Real Cost of Overcorrecting

If a price drop is made too steeply—or more than once—it can send the wrong signal.

In fact, a 2024 NAR report found that homes with multiple price reductions sold for 6.7% less on average than homes priced appropriately from day one. This means that repeatedly reducing the price can lead to a lower final sale price than simply pricing it right (and being patient) from the start.

So before we touch that list price, we’ll explore all the options. Because reducing the price is usually a permanent decision.

Selling Smart in 2025

In this market, pricing is important—but it’s not the only tool we have. The goal isn’t just to sell; it’s to sell with confidence, clarity, and the best possible outcome for your next move.

If you’re feeling uncertain about what to do next—or if you’re wondering whether a price drop is the right step—we’d be happy to discuss it with you.

Let’s take a look at your home, your market, your buyer feedback, and make the decision that makes the most sense for you.

Because your home deserves a thoughtful plan—not a reaction driven by panic.