THE PROPERTY SELLER’S CATCH 22
It is common practice to
inflate the projected selling price of a property by a small
percentage to allow for purchasers to negotiate. It also allows for
fluctuation in the market created by temporary surges in purchase
numbers. Unprecedented levels of competition at the time of releasing
the property onto the market sometimes result in a property selling
for the asking price.
Properties in a highly sought
alter category or in locations where there is a shortage of property
for sale usually have more room to inflate their asking prices.
However for most properties careful consideration should be given to
the amount of negotiating factor. If a property is more inflated than
other similar properties on the market, the listing agent will have
to “puff” the ad to attract purchasers to the property.
Over pricing is just the first
in a series of events that causes the property to become stale on the
It’s a Catch 22 situation, If
the ad is not as “puffed” as the price, the property will not
attract Inspections. On the other hand if the ad exaggerates the
property’s charms, purchasers will be disappointed when the reality
doesn’t match their expectation and the property will not sell.
In fact serious over pricing
targets entirely the wrong market and gives any interested party a
Purchasers feel they have
plenty a time to make up their mind because they know that the price
is putting most people off. Properties that stay on the market for a
long time at too high a figure often fail to attract offers.
Ironically, this very strategy which the less market aware vendor
uses to maximise the selling price ultimately lowers it.
The right negotiating factor
should make purchasers feel the need to get in before someone else
Astute pricing is crucial to
generating the kind of excitement and competition that will ensure
the house sells in the shortest possible time for the highest