Busting Property Pricing Myths
Category General News
The Property Pricing Myths That Leave Money on the Table
When it comes to buying and selling property, everyone's an expert - or at least that's what they'd have you believe. Parents, friends, family, colleagues, everyone's got some sure-fire advice that's always right and can't be tested. But that's not true, and what's alarming is how often such advice is considered fact and is then used to inform (and in some cases determine) huge decisions. We've rounded up some of the most common myths and dispelled them to help you make better decisions next time you've got a property in the market.
A High Price Gives Me Wiggle Room
Simply put, no. In fact, pricing your home too high initially could scare off potential buyers who otherwise would've considered it. Remember that your first price is your first impression, it's the "window of maximum opportunity", and you don't want to push people away unnecessarily.
Always Dismiss Lowball Offers
Just because a potential buyer comes in very low, does not mean they don't actually have the funds, it's a bargaining tactic. Don't take any offers personally, at the end of the day it's just a transaction, and you should try your best not to get emotionally invested. "Making decisions about property, especially when it's your own, can be very emotional and it's easy to take offence, but it's best to try to keep emotions out of the negotiation and work in good faith with what's presented. A good agent will know their buyer and will learn quickly if it looks like a deal may come together," says Herschel Jawitz, CEO of Jawitz Properties.
Listing at my Preferred Price Means Missing Bigger Offers
Not even close. People know a good deal when they see it, and this can quickly generate interest from multiple parties. What's more, people may be willing to stretch further to seal the deal.
Outdated Features Won't Have an Effect on my Price
They do and will. What it comes down is how much it's going to cost new owners to bring the home up to standard, and that will directly affect how much they're going to offer. Take this into consideration and price accordingly.
The Longer I Wait, The More I'll Get.
Nope. It's actually the exact opposite. People are perceptive, and once they notice a property has been on the market for a while, they're going to start questioning why and from there it can quickly turn into a slippery slope.
Don't Consider Prices too far Below Asking
In the property market, it's rare that anyone ever pays the asking price right off the bat. Don't be dissuaded by potential buyers who come in lower than expected; they've just got their financial interests at heart - the same way you do. Selling property isn't a sprint, it's a marathon, pace yourself accordingly and remember to keep the end in sight.
Always Have a Walk Away Price
It can be tempting to decide on a bottom line number and refuse to go any lower, but the reality of the current market is that buyers have more power. Don't automatically walk away from offers that are lower than expected, it might be the best offer you get, and it's not to say there isn't room to negotiate.
Pricing and selling your property is a delicate dance that's influenced by a plethora of factors, and nothing's ever guaranteed. Consider all the elements and play your hand carefully, or better yet, work with professionals like BBG who know the game and all the rules, it can make all the difference.
Author: Berman Brothers