Many people think that there is a correlation between putting a high initial asking price on an advertised property and achieving a high final selling price. 

“There’s certainly an expectation,” said Monika Bonet, Principal of Raine & Horne Glenelg. “But it doesn’t work the way many people think. In fact, the opposite is often the case. If a property is really overpriced, purchasers just sit back and wait to see what happens. If they’ve been looking around long enough to be ready to commit themselves, they’ve also made themselves very familiar with what they can get for their money.”

According to Ms. Bonet it is common for first time vendors to overprice their properties in the belief that the “right” buyer will eventually come along – someone who will fall in love with their property and pay more than the home is actually worth.

“People buy with their pockets as well as their hearts,” Ms. Bonet said.

“No one goes into a real estate purchase without making comparisons and weighing up all the factors. Buyers typically look at all properties in their desired suburb, regardless of the price so they can make an educated opinion of what’s value for money.”

According to Ms. Bonet many first time vendors make the mistake of thinking that no matter what price a property is advertised at, purchasers will always make offers. This can’t be further from the truth, because history shows that the more a property is overpriced, the less offers will be submitted.

“Put yourself in the purchaser’s shoes,” Ms. Bonet said.

“Buying a house is really stressful. Most people won’t let themselves get emotionally committed to something they feel is never going to come down to a realistic level. It’s easier to move on and make an offer on something that is more realistically priced.”

“It is wise to leave a negotiating factor when setting your asking price” Ms. Bonet said.

“But you must price your property to create a sense of competition so that purchasers will want to snap it up before someone else does, and the reality is the best price is nearly always achieved in the early stages of marketing.”

“Remember, the longer the property is on the market, the more buyers notice it’s not selling and the more they start to think that there’s something wrong with the property.”

If you’re thinking about selling your home in this market, it’s important that you call Monika to get an up-to-date and independent opinion of what price you should put on your home.

Call Monika today on 8376 8844.

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