Should I Price High for My Property to Leave Room for Negotiate?

Price is the key fact when it comes to buy or sell a property and there is no exact science to set the listing price, usually sellers have a number in their head and want to receive that number by the time of closing. It is normal to list your property a little bit more than asking price but if the price is too high, you ‘ll be stuck waiting for an offer too long.

Data analyzing is significantly important, and you cannot ignore the market data. You can use the similar homes that have sold nearby, these properties should be sold within the last 3-6 months. Make an adjustment for any different characteristics of each property, and the price will be the real value for your property. If your land is bigger or smaller, if you have extra kitchen or bathroom or any specific feature such as swimming pool or sauna, you need to do an adjustment.

Every home, in every market at every point in time has a “striking range” of prices where potential buyers will make an offer, you can not be outside of that range by pricing home too high. How big is the striking range is depending on market conditions, if there is hot seller’s market then buyers may offer more than asking price and you will have a chance to sell for more than asking price.

Don’t be greedy, greed is part of human nature, who wouldn’t want $10,000 or $50,000 more in their pocket, but getting the price wrong at the begging results lots of frustrating thoughts. Don’t blame your agent if you chose the wrong price at the first time, when you have gotten the price wrong, the market is sending you a clear message, you will not ger enough showing or no one sent you an offer, in this case  the home isn’t going to sell until the price gets in line with current buyer expectations. Th the market, most successful sales take place within 0-3% discount off the list price to get a fair price.

Seller’s motivation is also one of the critical facts when it comes to the price, sometimes the property need to sell urgent and seller may has more flexibility, therefore seller may list the property a little less than usual price in the market in purpose to sell it faster.

Try to stay objective and realistic, listen to  the market, you may have a house with thousands of fantastic futures and you want to list it for higher than usual market price, however it is good to understand that those features are your choose and the buyer may not need any of those features, so the buyer will pay for what it make sense and not more than that.