Getting your price right is so important. It is very important in the first two weeks of your property being on the market.
If the price is right you will actually sell for a higher price.
Because if the property is over priced, no buyers will contact the agent, the property will be on the market longer and buyers will notice this and wonder what is wrong with the property and that will get you a lower price every time. Money spent on marketing will be wasted as well. The price is a very important decision to make.
Types of pricing that agents use.
The Actual price: “$450,000” That is a great way to market your property, but you will never get any offers above $450,000
Offers Over: “Offers Over $450,000” this really stifles any negotiation, buyers below this price will be reluctant to inspect and when you do get an offer it most probably will be just $451,000.
Contact Agent: “Contact Agent” this one is silly, you will get the wrong buyers to the property, they will give you very low feedback on the property price etc. Marketing money is wasted on attracting the wrong buyers to the property.
Low, Mid’s or Mid to Highs: “Mid $400’s” This attracts lots of buyers from the market place, a buyer who is looking at a little lower than the mid $400’s will come to inspect and well as buyers above the mid $400’s. if you have the right agent they will be able to negotiate the buyers to the higher end of this scale. We have found this pricing most often will get multiple offers on a property.
$430,000 - $450,000: Buyers will always offer around the $430,000 mark….never use this one.
POA: “Price on Application” this scare buyers off, we often hear buyers mention that “oh, that one must be expensive with price on application”, sometimes buyers will ask us what does that even mean….
Auction: Really should be the best pricing to use, although in QLD we are not allowed to give a price guide so sometimes it attracts the wrong buyers, given the right property in the right market this is a very good way to sell a property.
Most importantly, choose your agent on their negotiation, organisation and people skills. The good agents are a little more expensive because they are good, the cheap ones are are cheap for a reason. Agents that give you very high prices, are sometimes doing that just to get them to list your property with them.