The Importance Of Pricing Your Home For Sale Correctly
What’s the harm in starting by listing my property for sale at a higher price, then reducing it if an offer is not received?
If you put a price on your property that is higher than you think its worth, to allow for negotiation, all you are doing is setting up your buyers to be disappointed when they get there. You have set their expectations at a higher level than the product is offering and this is not going to get them excited. And you will not get a sale…the property will stay on the market, become old news and eventually someone will pick it up for a bargain price, because “nobody wants what nobody wants” – it’s basic psychology. Also, if you have a set asking price you are virtually telling your buyer that you don’t expect more than this figure – when they might be quite willing to pay you more!
If however you set a marketing figure at below your expectations and invite offers over the figure, you are setting up your buyers to be surprised and delighted by what they see, as you have set their expectations at a lower level. This does create excitement and an air of competition whereby everybody wants to beat everybody else, and it will attract even better offers and in virtually every case produce a fast result that everyone is happy with. Make sure to also do your research on other similar properties in surrounding areas to get a good idea on what your property could sell at.
The best marketing in the world will not sell an overpriced home.
It is therefore vital to manage the expectations of your buyer and be absolutely sure you are not setting them up for a disappointment of any kind. This includes such things as not using fish eye lens to make rooms appear larger than they are, not “waxing lyrical” about properties to make them sound better than they are and most important of all…not overpricing!
So, the best advice is to set your asking price lower than the figure you want to get and invite buyers to make offers above this for your consideration. Please feel free to call The Property Exchange anytime for further clarification of this strategy. Don’t forget to also check out these 5 tips for selling your house quickly.