It’s impossible to under price your home!
How many times have agents told their clients the worst thing they can do is to OVER PRICE their home? Too many times to count!
Of course the sellers always say; “Well, we can always come down.” Or, “let’s list a little bit over what we want and then we will have room to negotiate”.
When I tell my sellers that another way of doing it is to under price their home, the first thing they say is what if no one makes an offer, or what if I don’t get the “right” price?
My response to this is it’s impossible to under price your home. If it’s that good of a deal, buyers and their agents will flock to your home and you should receive multiple offers.
That is, as long as you market the home correctly, it’s impossible. Why? Let me explain. If you were to under price your home and no one made an offer, then you wouldn’t have gotten offers if the price was higher either. Isn’t that right?
As a matter of fact, if you are truly under pricing your home, then your home should sell for over the asking price by the simple rule of supply and demand.
NOTE: As a listing agent, I would prefer my sellers got offers they didn’t like and be in a position to make counter offers, rather than have it over priced and sit on the market with no offers at all.
Read my blog on “Should I counter a low ball offer”?
Cheers,
Tap
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Love this post David! Pricing aggressively is so important in this market.
Thanks Jeff, it’s important in any market, but especially now.
Tap
Good point. Our home was on the market for over a year with very little interest. I suspect we were overpriced, but we went with what our agent suggested.
Retta@King City´s last blog ..North Plains Oregon
Retta,
Thanks so much for commenting to this blog post. Your home could of been overpriced but marketing also comes into effect too. If no one saw your home, then who knows if it was priced right.
Question how much to price your home? Find an agent with a good marketing plan that you trust. Then price your home ridculously below the market rate. You should get multiple offers many being near the actual “market price” of the home.
-Brendan