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Why initial selling price is so important - Michael McDonald

Why initial selling price is so important

Over my many years as a selling agent, I have often heard home sellers say, “Let’s try for a little more, we can always come down.” Whilst the theory is true, this can often have a major impact on the sale of your property. When contemplating the initial selling price of your property, you must be aware of the fact that the buyers already know about the market and they will compare your offer with the other homes on the market. If the buyers find that you are offering a fair market price, the house will be visited by the maximum number of interested buyers.

When you quote an exceedingly high selling price for your house and then reduce the price drastically you may be missing the opportunity to sell the house for the price for which it is really worth worth.

Buyers who show keen interest in a property may get suspicious about a sudden price reduction and will have the impression that there is something radically wrong with the property. Hence it is all the more important to quote the correct price for the house initially.

Attract more buyers

An inflated price for your house is unlikely to receive serious offers from potential buyers. When the house is correctly priced not too high when compared to the conceived market price, it will attract more genuine buyers to the property and therefore increased competition for the home. Those who quote over market value will receive only few responses and the lessened competition will mean that buyers will hold the negotiation power.

Get the home sold quicker.

The longer your house is on the market, typically this means the lower the price you will be getting the property. When there is delay in selling a house it usually means a bad impression is being made about the property in the marketplace and if there is something as that is perceived wrong with the home this usually means you may have to be compelled to sell it for a price that is considerably lower than the true market value.

How to generate maximum number of potential buyers

When you are deciding the initial selling price for your house first you must think as though you are the buyer and another person is the seller. As the buyer you want to ensure that you do not overpay for the property. Instead of quoting an aggressively higher price for your house, quote a price that is not much higher than the prices for which similar houses were sold recently. When the house is correctly priced initially, it attracts the attention of more number of buyers and through them many people come to know that your house is for sale. Your local Raine & Horne agent in your area are aware of the correct market value of your house. They will help guide you to a correct initial asking price so that they are able to attract more potential buyers to your property consequently getting the opportunity to negotiate with a number of potential buyers and will be able to get you the best possible price and terms and conditions of sale.

While quoting the initial selling price of your house you must be aware of the fact that the buyers already know about the market and they will compare your offer with a lot of other offers. If the buyers find that you are offering a deal that is worth to consider, the house will be visited by the maximum number of interested buyers.

Michael McDonald
CEO Raine & Horne SA

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