Find Your Home!

Saturday, February 25, 2017

Home Seller Tips: Should a Seller Price Home High and Negotiate Down Later?

Whether buyer or seller, it is always about price.   Any house will sell if you price it properly.   What does it mean to price a house properly?

What does it mean to not price a house properly?    Pricing a house properly should not be solely (if at all) based on things like...
  • what a seller paid originally plus a "profit."  
  • a neighbor's house that is "exactly like mine."  
  • Uncle Joe's advice or Felicia the office know-it-all.
What does it mean to price a house properly?

Most importantly consider the location, condition and competition.

Secondly, consider the circumstances of the sale.  This includes the type of sale (short sale, investment flip, estate sale, etc.).  

Consider the timeline.   Is there a need for a quick turn around?   Does a job transfer or school schedules necessitate a condensed process?   If the new home purchase is not contingent on a sale then pressure is lessened.

How can a seller know if a house is not priced properly?

Consider my 30-10-1 rule.  Simply put this means a house that is on the market for 30 days should have at least 10 showings during that time and at least one offer.   If the activity during the initial thirty days is short of that metric look at price.

Another metric I urge prospective Viera, Florida home sellers to consider - the golden period

What is the golden period?   The golden period is the initial 14-21 days when a new listing generates the most activity.   Of course if the price is right, in a market such as the Brevard County market, the property may be under contract with just a few days exposure! 

Can a seller price high and negotiate down?  That is a possible strategy.  But why?  A higher list price may mean fewer showings and a longer time before any offers arrive (if any).

I advise sellers to entice an offer by listing with an attractive price on day one.   But what happens if an offer comes in at a lower list price?  No seller is compelled to sell regardless of list price.  

Let me repeat that pricing fact:  Regardless of list price a seller does not have to accept any offer.  As opposed to the question in the title why not price lower and negotiate upward sooner?

The key to selling is having the right real estate professional put together the necessary market analysis and marketing plan, advise on preparation, timing and then, working with the seller, execute the plan. 

So while any house will sell it must be remembered that the market will set the price - not necessarily the seller.   Value is in the eyes of the buyer!

Thinking about selling your Viera, Florida home?  Call or text me at 321-693-3850.  Let me prepare a market analysis this week!

Ready to buy a home in Viera, Florida?  Let me help you.  I have been specializing in the central Brevard areas of Viera, Suntree and Rockledge for fourteen years!

Follow by Email