Price or No-Price

Last week I was invited to talk with a dear friend whose personal circumstance is changing, and the family home is to be sold. I thought you might also be interested in what we discussed.

Several selling solutions are offered by the real estate industry. Some use NO PRICE, while others use an ASKING PRICE.

Selling a property with no price may be appropriate in either of two circumstances: a. when buyers have no alternative choices, for example

like artefacts; or b. when the selling price is less important than selling, for example like a forced (mortgagee) sale.

These conditions rarely apply to most residential sales.

Buyers tend to feel frustrated when there is no price – they assume the seller’s expectations are too high. And research shows, that up to 80% of potential buyers bypass an unpriced product in favour of one with a price.

When an asking price is absent, buyers tend to look for clues as to value. The most common reference point is a property’s Rates Value – however, this is more often than not a poor representation of the current market value.

Properties without an asking price tend to attract more “lookers” – curious non-buyers. Lookers are of no benefit to a seller. A seller benefits from and wants genuine, qualified buyers.

Without an asking price, you often attract people who can’t afford to pay the market value of the home. You then struggle to negotiate those buyers up.

A property with an asking price tends to attract more genuine, qualified buyers. The right asking price attracts the right buyers. The right buyers are those who can afford the property and are ready to buy now.

The agent’s job is to:

The right ASKING price appeals to the best buyers. The best buyers tend to respond early in the marketing. Incoming enquiry is greatest when a listing first feeds to the internet portals because active buyers set up automatic alerts to notify them about new listings.

If you have not used the right pricing strategy you might not maximise this window of opportunity. Buyer interest often drops away after this initial period.

The right SELLING price facilitates the vendor’s sale in the sellers timeframe, and is the highest price a skilled negotiator persuades a buyer pay.

If you require our help please call me anytime.