Pricing your property to achieve the best sale price
Your property will always be sold in competition with other properties and never in isolation. This is why it is important to be pricing your property to achieve the best possible sale price.Â
How to price your property to achieve a premium price.
You and your agent need to carefully consider where you place a property in the marketplace.Â
Going too low
Going too low is never ideal. You don’t want to miss out on the opportunity to maximise your sale price in the market. Even if needing a quick sale, the right agent can tailor a strategy for your needs and balance speed with a great result on price.
Going too low can also make some buyers wary that there might be an issue with the property, and scare off their interest.Â
Going too high
There is a downside when going too high and not being priced competitively in the marketplace. This fails to get enough buyers through the front door to be able to create competition. Competition between buyers gets them bidding against each other and is what creates the best sales results!Â
To do that buyers need to be attracted to the property, and not scared off by a high price. Many counter this by saying that ‘we only need one buyer to buy a house’ but really, to price your property to achieve the best sale price, you need multiple buyers.Â
Psychologically, seeing other buyers competing for a property draws attention away from any shortcomings in the property, and creates a fear of missing out, as well as validating the price for the property.Â
Think about urgency like competing for the girl (or guy) next door…
Think about your days chasing a romantic partner. What happened when you heard that your friend was making a move on your long time crush? You realised it was time to make a move and not sit on your haunches anymore! Competition creates urgency, which is desirable for your sale.Â
Overpriced properties that sit on the market too long invite negotiation when an interested party sees that no one else is bidding.Â
How to price the property correctly
Work with an agent who compares sales and comparables in the marketplace, to understand them and the differences between these and your property. Agents are constantly talking to sellers and buyers to get raw feedback on demand in the market.Â
You can learn more about pricing in our Sydney Listings Academy.
It is better to use an agent with negotiation skills who can then achieve the best price, rather than simply list the wrong price. At Sydney Listings, our goal is always to cover our fee through our negotiation skills alone, understanding how much a buyer wants your property so that we can extract the best offer possible out of them!
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