For years we have worked with our sellers on finding the “magic number.” That is the list price that will get the most amount of eyeballs on your listing and feet into your home. The worse thing a seller can do is to “try” an inflated number with the plan that they will give it some time, and if they don’t get that number, then they will have a price drop. As in life, you only have one chance to make a good first impression. Sellers wind up chasing the market down, and become frustrated by the low-ball offers they receive.
Guess we’re not the only ones who have noticed this phenomenon. Read on to see what the well-respected KCM real estate blog uncovered. According to them…
Price it a little low
This may seem counter intuitive. However, let’s look at this concept for a moment. Many homeowners think that pricing their home a little OVER market value will leave them room for negotiation. In reality, this just dramatically lessens the demand for their house:
Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price it so that demand for the home is maximized. By doing this, the seller will not be fighting with a buyer over the price, but will instead may have multiple buyers fighting with each other over the house.