DON’T SET YOUR PRICE TOO HIGH

Southern Gazette (South Perth) - - Residential -

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.

Ge­off Baldwin.

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