DON’T SET YOUR PRICE TOO HIGH
HOMEOWNERS are being encouraged to do away with fixed asking prices when it comes to selling their home.
Certified Practising Real Estate Agents also warned sellers against using multiple appraisals to determine an asking price.
“Many prospective sellers invite three or four agents to provide appraisals of their property to ascertain a likely selling price and often fall into the trap of adopting one of the highest quoted,” CPREA chairman Geoff Baldwin said.
“However, this can actually cost money rather than gain more.”
Mr Baldwin said the wrong selling price often translated to lessened interest from genuine buyers.
“The biggest driver in the buying process is emotion; however, it is impossible for a buyer to fall in love with a property if he or she never has it on their list to view,” he said.
“The records show that buyers invariably spend 5 to 10 per cent more than they initially budget and this is because they are often disappointed with what they are seeing (in their price bracket) or because they see a house above their budget, fall in love with it and simply pay what they need to pay to buy it.
“Choosing a price based on agents’ opinions and then adding another $10,000 or $20,000 for ‘negotiation’ will only ensure that the wrong pool of buyers are viewing the property and that the correct pool are simply not putting it on their shopping list.”
Mr Baldwin said creating interest with pricing tactics could attract multiple offers.
“It is common, when several buyers are interested in the same property – especially where there is no price indicator – for those buyers to make offers that differ by tens if not hundreds of thousands of dollars,” he said.
“For this reason, using the age-old approach of placing a fixed price on a listing and then hoping to attract multiple viewings simply no longer works and for that reason sellers should be looking for agents who offer a more strategic approach.”
Mr Baldwin said auctions, set date sales and offers created an open invitation to buyers to view the property without the barrier of a fixed price.
“Once a buyer has seen the property, if they are attracted to it they will pay whatever they need to within reason to make it their own,” he said.