Pricing Like a Pro
Richard Johnson’s Thoughts on the Possible Comment:
“My price may be on the high side, but bring me an offer!”
Serious buyers look in the price range that has been predetermined by their down payment and monthly payment ability. Unless your property is priced correctly, the down payment and monthly payment requirements will not be competitive.
A buyer, who is genuinely looking, soon becomes very knowledgeable in his range. An unreasonable asking price only discourages him from looking and considering your property.
Buyers purchase by comparison, and a property priced above the competition does not “compare” favorably. Inviting a buyer to make an offer could indicate that a fair price has not been established.
If you plan to adjust your price at the time of a sale, it is better to adjust the price now and attract serious buyers. This often places you in the advantageous position of having more than one buyer interested in your property.
It is very difficult to obtain a reasonable offer on an overpriced property. The buyer feels he should be just as unreasonable in his offer as the seller in his asking price.
By contrast, offers are much easier to obtain on a reasonably-priced property. You can then choose which offer to accept with no obligation to one that does not meet your requirements.
It is a mistake to believe that you will get more for a property by asking more. You usually get less, because fewer buyers will consider it when it is placed on the market. The right buyers will not see it, and it usually stays on the market so long that it tends to become “shop worn.”
To obtain proper market exposure, it is an absolute necessity to be competitive in price, terms, and condition, with similar properties that are selling in the area.
If you are a committed seller, price your property at market, and attract serious buyers. You will stand a much better chance of getting full-market value, and your property will sell much faster.