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Dear TZ - I Want To Price a Little High to Leave Room For Negotiating

By
Real Estate Agent with Remax First Realty II 0790808

Dear TZ -

I understand why you want to price my house at $250,000. I think if we price it at $275,000, we'll be able to negotiate and still get $250,000. And maybe we can even get $275,000 - we should at least try, right? What's the harm in that?

 

Eager Eleanor

 

Dear Eleanor,

Of course you want to get as much money for your home as you can.

Baby Working On A LaptopThe problem with that kind of thinking is that buyers are very educated. There is a plethora of tools buyers can use to determine home values – the internet is absolutely full of ways to compare homes and home values. Most buyers are very aware of what homes are worth, and all are trying to get a good deal.

When your house goes on the market, the greatest potential for buyer traffic is in the first 30 days. By pricing it too high with the intention of dropping the price later, you completely bypass your best buyer candidates.

Overpriced home will simply sit on the market. Unfortunately, extended time on the market forces the question in a buyer’s mind of the possible bigger problems looming within the walls of the property.

When a home starts its listing life overpriced, it almost always sells for less than market value. With fewer buyers to choose from, zero leverage because of time on the market, too high an asking price, and carrying costs to maintain the property, most sellers find themselves getting the least from their investment rather than the Daydreamingmost.

It's your home. All your Realtor can do is provide information to help you make your choices. But please make your choices based on fact, not fantasy!

Good luck!

- TZ

 

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~ Wayne & Jean 

Union County, NJ - a great place to live and work!

If you're looking to buy or sell a property in Union County, call us at 908-917-4189 or email TeamZuhl@gmail.com.

 

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All opinions, information and data provided is deemed reliable but is subject to errors and omissions. Not intended to solicit other Brokers' clients. We cooperate with them fully. 

Beth and Richard Witt
New York, NY
The best Retired Brokers !!!!

I have to congratulate you on this post. I have trained agents for over 30 years and with that background I would be proud to share your information with any future sellers and all agents...

Remember what Yoda says: "There is no do, only try."

Happy Day

Jul 24, 2012 11:30 PM
Tamara Elliott-Deering
Central Metro Realty - Austin, TX

This is great advice.  I hope that you have luck with your sellers.  The only problem is the difficulty in proving a negative.  If you put the house on the market for $250k and it sells in a week, I think you've done a great job, the seller on the other hand wonders whether he should have asked for more money.  It seems to be a lose lose proposition, somehow the seller seems to lose sight of the goal.

Tamara

Jul 24, 2012 11:43 PM
Doug Rogers
RE/MAX Coastal Properties - Destin, FL
Your Real Estate Resource!

Usually there is a well meaning friend or family member giving them advice. As a wise father just told one of my sellers, "you can always go down on price, but you can't go up". We have been on the market 45 days with ONE showing.

 Listen to the professionals you are paying.

Jul 24, 2012 11:54 PM
David Grbich
Realty One Group - www.FindCARealEstate.com - San Juan Capistrano, CA
Orange County Real Estate - 949-500-0484

While I do agree . . . in the current sellers market many sellers are taking this approach and getting their higher price (ie, a price that exceeds sales comps). It's a gamble that can leave a home sitting on the market. Regards Dave

Jul 25, 2012 01:17 AM