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BONUS TRUTH - The "High Price Tactic"

This is another truth regarding Real Estate that I am sharing with you. Beware of the high price tactic. It has been used for years and continues to hurt uninformed sellers. Once you read this page you will not only be able to see when and why this strategy is being used on you but now you will be able to profit by avoiding it!  This tactic is also called "Buying Your Listing".

HOW YOUR ASKING PRICE AFFECTS YOUR SELLING PRICE

There are 4 common strategies that most sellers use to price their homes. It is unwise to assume that a higher asking price will net you a higher selling price. In fact, often this equation works in reverse, especially if you're not paying attention to what the market is telling you. Remember, you cannot "fool the market" with a high price. Please consider these facts when you set your asking price.

  1. Clearly Overpriced - Every seller like you wants to realize the most amount of money they can for their home, and every real estate agent knows this. If more than one agent is competing for your listing, an easy way for the agent to win you over is to over-inflate the value of your home. Often we see new listings that are priced at 10 - 20% over their true market value. This is very unfair to you - and once you are listed with the agent who convinced you to go with the high price, that agent will constantly ask and pressure you for price reductions in order to sell... ouch!

    This is the "High Price Tactic" and is clearly not in your best interest, because in most cases the market won't and can't be fooled. As a result, your home could languish on the market for months, leaving you with a couple of important drawbacks:
    - your home is likely to be labeled as a "troubled" house by other agents, leading to a lower than fair market price when an offer is finally made
    - you have been greatly inconvenienced with having to constantly have your home in "perfect showing" condition for months ... for nothing.
    - homes that are clearly overpriced often expire unsold, forcing you to go through the whole listing process all over again, often with poorer results than had you listed at the right price in the beginning.

  2. Somewhat Overpriced - Often about 3/4 of the homes on the market are 5-10% overpriced. These homes will also sit on the market longer than anyone would want. There is usually one of two factors at play here: either you believe in your heart that your home is really worth this much despite what the market has logically indicated (after all, there's a lot of emotion caught up in this issue), OR you've left a little too much room for negotiating. Either way, this strategy will cost you both in terms of time on the market and ultimate price received.

  3. Priced Correctly at Market Value " What is Market Value? " - Most sellers understand that real estate is part of the capitalistic system of supply and demand.  They will carefully and realistically price their homes based on a thorough and complete analysis of other sales and the "competing" homes on the market. These competitively priced homes usually sell within a reasonable time-frame and sell very close to the asking price. When your home is priced correctly, it should sell for 97% to 99% of asking price!

  4. Priced Below Market Value - Some sellers are motivated and require an instant or quick sale. These homes attract multiple offers and sell fast - usually in a few days - at, or above, the asking price. Be cautious that the agent suggesting this method is making this recommendation with your best interest in mind.

HOW TO GET THE PRICE YOU WANT (AND NEED) FOR YOUR HOME

PRICING STRATEGY STARTS WITH GOOD INFORMATION

Before you can begin to know what your home is worth, you should do some research, bearing in mind the following:

In conclusion

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Mississauga MLS Real Estate Properties & MLS.CA Homes for Sale  | All Pages including Mississauga Real Estate Blog all maintained by info@mississauga4sale.com Copyright © A. Mark Argentino, P.Eng., Broker, RE/MAX Realty Specialists Inc., Brokerage, Mississauga, Ontario, Canada L5M 7A1 (905) 828-3434  Google  First created - Tuesday, July 16th, 1996 at 3:48:41 PM - Last Update of this website: Friday, December 1, 2017 10:13 PM
At this Mississauga, (Erin Mills, Churchill Meadows, Sawmill Valley, Credit Mills and - or Meadowvale ) Ontario, Canada Real Estate Homes and Property Internet web site you will find relevant information to help you and your family.


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