Proper Pricing Philosophy
Serious buyers tend to look in a price range that has been predetermined. Possibly by their down payment, monthly payment, budget and or simply comfort level. A seriously buyer becomes very knowledgeable in his/her range. An unreasonable asking price can often discourage potential buyers from spending the time evaluating all the details of your listing and really considering your property.
In our buyers market supply is plenty. Buyers purchase by comparison, a property priced above the competition does not “compare” favourably. Thus may be skipped. Inviting a buyer to make an offer could indicate that a fair price has not been established.
If you plan to adjust your price at the time of a sale, it is better to adjust the price now and attract additional serious buyers. This can often place you in a favourable position, having more than one buyer interested in your property.
Vendors who want to price their homes with a “cushion” can attract the exact opposite result. It is very difficult to obtain a reasonable offer on an over-priced property. The buyer feels he should be just as unreasonable in his offer as the seller in his asking price. The initial viewing can be one of looking for negatives to justify their low offer.
By contrast, offers are much easier to obtain on a reasonably priced property. You can then choose which offer to accept with no obligation to one that does not meet your requirements. Also the buyer will view your home with a very different state of mind, looking for value not flaws.
The buyer who sees the true value in the property will be the one who is willing to pay for it.
To obtain proper market exposure, it is an absolute necessity to be competitive in price, terms, and condition, with similar properties that are selling in the area.
If you are a serious seller, price your property at market, and attract serious buyers. You will stand a much better chance of getting the full-market value, and your property will sell much faster.