When deciding upon an asking price we always recommend that clients avoid falling into the trap of ‘wiggle room’ pricing. And by the way. We strongly advocate against ‘odd’ or ‘charm’ pricing your home. Read here for details: Choose a Round Number!
What are the pitfalls of wiggle room pricing?
1. You Risk a False Start
The market is competitive and there is ALWAYS substitutes for your home. If you price too high, potential home buyers will simply avoid your listing and you risk getting fewer showings.
2. You May Languish
Homes with ‘wiggle room’ are easy to spot. They sit on the market. When a listing is on the market too many days beyond what is considered a normal time on market it will start to languish in the market and could be for sale for a very long time.
3. You Risk Becoming Old News
Retail buyers. That is those consumers that will pay you the most money are usually only interested in ‘new and shiny’ listings. Home buyers soon lose interest in homes that have been on the market for a while. They only want to buy the new and interesting listings in most cases.
4. Buyers Will Become Increasingly Aggressive
If retail buyers like to pay you the most money. Who might pay you less? I describe these folks as ‘predatory buyers’. These buyers are different. They are more experienced in buying real estate. They have an appetite for a deal. And they have an eye for a profit down the road. Predatory buyers are looking for the sick and weak ones in the herd. If your listing has been on the market for a long time you can expect these folks to show up. You can expect LOW offers!
5. You Only Help Your Competitors
You may think its ok to wait a while for your buyer. Or that the market will somehow pick up and give you want you want. Meanwhile all those other home sellers that avoid ‘wiggle room pricing’ and priced correctly for the market are making deals and selling their homes. Your high-priced home made them look like good value.
6. You Miss Out on Multiple Offers
If you only have one buyer interested in your home what goes through their mind? “I want to buy but what discount can I get?” If you have more than one buyer then the thought in their head becomes “I really want to buy but how much do I have to pay to be the winner?”. Price lower. Avoid wiggle room and you enjoy a very high probability of getting multiple offers.
You should also be aware that there is MUCH more to selling a home than picking a price. Click this link to learn more: 8 Keys to Home Selling Success
About the author:
You can read more about the author of this blog by clicking this link – Stuart Neal Broker Owner & REALTOR®
Want more information about our discount and flat fee home selling programs? Please feel free to call our broker owner Stuart Neal at: 780-760-2014 or visit our home sellers page www.FlatFeeRealtyAdvisors.ca