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.
RE/MAX Classic Group