Achieving the best price in a competitive market
Research has shown that getting the price right at the when placing any property on the market for sale is an important factor in achieving a fast sale. Properties that have price reductions are historically shown to stay on the market longer and have less interest.
The thought process of ‘allowing negotiation room’ by marketing the property at above the market valuation can be damaging to the sale turnaround time and also narrow the amount of potential viewers. In today’s age of Rightmove and Zoopla internet portals people searching for a property within their budget will miss the property that is marketed with the ‘extra negotiation room’ price added.
Thinking of it in this way.. if you had only one person looking to put an offer in on the property with it being marketed at the higher price then the negotiation power is currently with them. If on the other hand you had several people looking to purchase the property when marketed at the ‘correct valuation’ price then you are more likely to achieve a more favourable outcome as having several people interested allows the power of negotiation to be in the vendors hands. Much netter to have a higher level of demand for the property to create urgency within the prospective buyers.
Getting the marketing price right from the beginning will achieve a much quicker sale, whilst achieving a more favourable end result in terms of value for the seller.
Key to achieving a sale is to generate enough interest. Offers can be negotatied. No offers cannot. Placing the property on the market at a slightly inflated price to give ‘wiggle’ room means losing out on potential buyers who are put off by the price.