« Canada’s executive home prices | Main | Discounters becoming respectable »
The Price is Righteous
Poor pricing will negatively affect the selling price of a home
The rationale for pricing high is this: the buyers will always make a lower offer and you'll have 'room for negotiation'. The problem with this methodology is that the seller signals the following points to prospective buyers, none of them good!
When sellers set the price too high, they signal to potential buyers one of five things:
1/ I'm greedy: I know you'll start negotiating by knocking 5% off my asking price so I'll raise the price we start from.
2/ I'm unreasonable: I want this amount of money no matter what the market dictates.
3/ I don't know the market: I really do think my house is worth that much more than the last few houses that sold.
4/ I'm delusional: My house is unique and you'll pay for the privilege of having it.
5/ I don't really want to sell: I set my wish list price and if I don't get it, so be it.
Good buyers' agents will alert their clients to these possibilities and find properties that are better priced for their value.
For both buyers and sellers, having an agent who can accurately judge the price homes is essential.
April 8, 2007 in Selling Toronto Real Estate | Permalink
TrackBack
TrackBack URL for this entry:
https://www.typepad.com/services/trackback/6a00d8341c51e453ef00d83532307469e2
Listed below are links to weblogs that reference The Price is Righteous:
Comments
This strategy could work, but not in all cases. Researching the market first will give you a general idea whether the price is too high or not. Some cases are justified, it all depends-sometimes you just need to pay a bit extra for something you really like.
Posted by: Vancouver realtor | Feb 11, 2008 4:12:30 PM
Most people fail to understand that sellers most of the time need to sell rather then the buyers need to buy. Many people buy a second home with out selling the first home and risk double mortgage. For the most part people sell because they need to sell and at times the seller is in the hands of the buyer. I've low balled a house at $320000 when it was selling at $400000 since I seen it was empty and most likely the seller was in trouble with two mortgages I put that low ball offer firm and final. The seller sold. Anyone looking to buy needs to be tough and walk away from houses when their low bid isn't accepted. Sellers are weaker then you could imagine. Good luck and don't bid high(low ball) and walk away.
Posted by: davis | Apr 8, 2007 9:40:18 AM
The comments to this entry are closed.
