Getting the best price

Posted on 29 October, 2013 in Tips, Selling Property

When putting a property to the market there is a belief that if you put a high price at the start, then you will achieve a high final selling price.

There is certainly a link but it doesn't work the way many people think. In fact, the opposite is often the case. If a property is introduced to the market at to high a price purchasers will often sit back and wait to see what happens over time. Any purchaser that's been looking in the market for a while will be very well informed and have a good idea of what a property is worth comparing it to other properties they have looked at or that have sold.

It is common for owners to want a high price for their property in the belief that the right person will eventually come along and make an offer to buy it. They often seem to think that no matter what price is asked a buyer can always make an offer. Buyers on the other hand are extremely well informed with use of a multitude of internet websites that can show them what the average selling price in a suburb is or even what the value of a specific property is. They can also look at what has recently sold in the area and what is currently on the market to compare with.

By overpricing a property you are likely to deter many potential buyers who have researched the market to determine values in the area, thus minimising any enquiry you may get. Often some buyers will have a look to compare to other properties currently on the market only to make an offer on another property they consider to be more realistically priced.

It may be wise to have a negotiating factor when setting the asking price, but to attract offers from the market the property needs to be competitive with other properties being sold at that time. The best price is nearly always achieved in the early stages of the marketing when the enquiry is good, but if this time is used promoting a price that is to high it can deter the enquiry meaning a lack of activity on the property. This often encourages the owner to reduce their price to get enquiry which is like shutting the gate after the horse has bolted. Starting with to high an asking price often means multiple reductions to get the property into the market in order to attract an offer. Unfortunately this strategy often sees the owner having to reduce further than necessary in order to get a result.