Why Should I Price My Home Like that? I Can Always Negotiate Down Later Right???

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Education & Training with The Get Off Your A$$ Academy

Sellers always ask me this question....it is a tough pill to swallow sometimes when I recommend pricing their home $25,000 less than what they were hoping to ask, even though the comparable sales can justify my price. Their thinking?? "If I price it $25,000 lower, someone will low ball me even further. I'd like to price it higher so that I can leave some room to negotiate"

I fully understand this logic. In fact, it makes complete logical sense. However, it makes no Real Estate sense. Let me share a quick testamonial from this past weekend to illustrate what happens when you price a home to sell.

Property X was listed on Wednesday. I showed it on Thursday, we made an offer on Friday. By Sunday, there were 4 other offers. My clients because they loved the home made a "highest and best" offer of about $4000 above the asking price.

My clients were outbid "significantly". They were disappointed of course, but on the seller side, those folks ended up getting between $10,000 and $15,000 ABOVE their ask.

Had they "left room" to negotiate and priced it $20,000 higher, I firmly believe they'd have had less offers, if any, and would have given up the ability to dictate the terms they wanted, because there was less interest.

So when I come into your home and give you a suggested list range...if you'd like to be in the shoes of those sellers, I humbly request you take my pricing advice. Its for your benefit!!

Thanks for reading.

Sean Carroll

www.TeamCarrollNJ.com

RE/MAX Classic Group

 

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Rainer
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Team GMS
Moretti Realty Century 21 - South Plainfield, NJ

I see this blog is older..but it is SOOO true...I really hate when agents push or support a owners desire for a high list price.  It is a total dis-service 

Feb 28, 2010 10:19 AM #1
Rainer
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Sean Carroll
The Get Off Your A$$ Academy - Manhattan, NY
Real Estate Speaker and "Expert" Coach

Tara thanks for your comment. Yes, its an older article, but ALWAYS applys in any market really.

Mar 01, 2010 08:46 AM #2
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Rainer
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Sean Carroll

Real Estate Speaker and "Expert" Coach
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