Every seller wants to get the most money for their property when it comes time to sell. Ironically, the best way to do this is NOT to list at an excessively high price! A high listing price will cause some prospective buyers to lose interest even before seeing your property. Also, it may lead other buyers to expect more than what you have to offer. As a result, overpriced properties tend to take longer time to sell, and they end up being sold at a lower price. The longer a property stays on the market unsold, the more it becomesstale. If a property becomes stale, the first question every buyer will ask, even if it’s to themselves, is …. What’s wrong with the property? Any perceived deficiency will result in the buyer wanting a discount. That’s what drives the price of your property down. Many sellers think that they have to leave a lot of room for negotiation in the listed price.
The reality is that in a normal market – that is where it’s fairly balanced between being a buyers market and a seller’s market – the discount level is around 6% to 10%. Let me explain what the discount level is. It simply the dollar value difference between the original list price and the final sale price. Therefore it stands to reason that if the market is balanced, anything over that range means it will be overpriced. If you are trying to sell in a buyers market, then you’ll need to make sure your list price is as sharp as it can be. In a seller’s market you can have a lot more wriggle room with your price and in fact, in this case, it is wise to consider auction as a sale method. But that is a whole different subject.
So the bottom line – Do your homework, be realistic, keep your feet on the ground and listen to the market. Don’t make the mistake that many sellers make when they ignore early offers. Early offers come from a pool of very educated buyers. They know value better than most, and likely including your agent. I’m not saying you have to take the first offer ….. but you certainly have to take it seriously. Show your willingness to negotiate. There is a buyer for every property – it comes down to price! The sooner you start negotiating with a buyer the sooner you will get your property sold.