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Why List High?: Real Estate Minute #44

Why don’t we list high so we can leave room for negotiation?
This is a common question most home sellers have in pricing their property for sale.
If that’s you – you’re actually right thinking you need to take this into account in how homes get sold. The reality however, is that homebuyers are deterred by this.

You see homebuyers often see homes priced too high as a sign of an unmotivated seller.

If you come out of the gate, overpriced, homebuyers and agents that show properties write you off. The higher the price of the property, the less the seller seems they need to sell it. . . at least that’s what buyers believe from their past experiences.

Now, this approach also assumes that you’ll lower your price down later. Most buyers don’t realize that you’ve lowered the price and depending on email notifications, or flyers to go out means a good chance it’ll go unnoticed.

My advice – price it right from the beginning. Your odds of agents showing it with interested buyers are much higher.

I’m just spit-balling here, but what if you turned this a little like so:

Why don’t we list high so we can leave room for negotiation?
This is a common question most home sellers have in pricing their property for sale — and it’s on every sellers mind at one point or another whether they ask the question or not.

I certainly understand that line of thinking, especially when everyone has been saying how hot the market has been for so long. The reality, however, is that this approach can really work against you. In today’s world, where neighborhood comps and pricing tools are just a few keystrokes away — for anyone with access to the internet — it becomes very clear when a home is over-priced. Being perceived as over-priced will deter potential buyers. Your strategy of lowering the price if you need to — only works if you know that you need to. You will likely never hear from interested buyers who perceive you as overpriced. And you don’t want to be perceived as an unmotivated seller.

My advice… price it right from the beginning. You’ll be glad you did.



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