What’s the ‘right’ price of your house? - There is the right price and the best price, and then there is how much a house is worth. These are three different things, but understanding them can help you to make better decisions, get faster results, and to sell at a price more favourable to you.
What is the right price of your home? - The “right” price is what the buyer and seller agree to. All other prices don’t lead to a transaction.
You can quickly establish the best price of your home – What is relevant – and where I can hopefully be a little more insightful for you – is that home sellers can find out the best price that buyers will pay for their homes much more quickly if they change their sales strategy.
The slow way to find the best price - The normal sales strategy is to price high and hope some offers come in. That’s why you will find all the major website asking prices are tens of thousands higher than properties actually exchange for.
Some Estate Agents are partly to blame for super-inflated asking prices. They convince you they can sell your property for more than anyone else, in order to win an exclusive contract with you – for an extended time period.
Undoubtedly, some sellers really are confused about what buyers will pay; others aren’t bothered about selling quickly and can wait as long as it takes until buyers are prepared to pay their asking prices.
Properties aren’t market stalls - Buying a property is nothing like buying a car or buying from a market stalls.
Buyers visit markets, see what they like, haggle on price, and make a deal. Visiting the market is all part of the fun for the buyer. They already expect to get a bargain, which is why they want to go in the first place.
With car dealerships, the customer normally has a clear idea what the product is like before visiting. In other words, they’re driven to go to the dealership because they already really want to buy the product.
Those techniques aren’t appropriate when selling a home. Most people don’t visit other people’s homes for the fun. Nor do they know beforehand what the property is really like.
In other words, they have no pre-existing desire to own the property, or to visit the property, if the asking price is high.
Getting the best price – quickly - Remember, at this stage, all home buyers really have to go on, apart from the photos and possibly a floor plan, is the price.
Home buyers look at the asking prices on different websites. If they see it’s thousands over their budget and over recent sales prices in the area, they’ll skip over it. Many potential buyers won’t even visit.
Potential buyers can’t fall in love with your property unless they visit.
As a seller, then, you want as many people to come to your property as possible, so more can fall in love with it. That’s your main goal, with negotiating techniques, sales pitches and all the other ideas on home selling are helpless if you can’t get the footfall of viewers.
Rather than pricing high and putting customers off, you price correctly and encourage many more to visit – which they’ll now do