Is overpricing a good idea?
In my opinion, setting the price of your property too high or over it’s true value, can seriously damage your chances of selling. For starters you limit your target audience of buyers at a time when increasing your audience is imperative, to effect a sale.
The higher the price the smaller the market
Often vendors and Estate Agents believe that the asking price should be set high to allow room for negotiation. The problem with this idea is that setting the price too high often leaves you with no-one to negotiate with. As time goes by vendors become even more ‘desperate’ to sell and may end up taking an offer lower than they could have achieved with correct pricing.
Would you buy a £20 note for £22?
Let me ask you this simple question, if I were trying to sell a £20 note for £22 how much interest would I have, even if I were willing to negotiate to the correct price? Even if I were trying to sell the £20 note for £20 I would probably still have very little if no interest at all. Then why is it that we do this everyday with property in a tough market. Now if I were marketing That same £20 note for £16 I’m pretty certain I would have plenty of interest, and loads of offers. Granted some would be ’silly’ but there’s a good chance that some would be good the fact is I would probably sell for £19.99 in the end.
Simply hire an agent who can negotiate
My advice is simple, get the price right and hire an agent who can actually negotiate for you, their client, instead of an agent who’s tactic is to try to make the buyer believe that they are getting a great deal. What happens when the buyer finds out that they have been hoodwinked?
Remember all buyers really want is a fair deal for the right property, and technology now gives them all the tools they need to find one. If you offer a fair deal, you will get a fair deal. Unfair deals have no place in any given market!