The method, as explained above, when you price a home to negotiate, routinely results in a home Seller selling their home for less due to all of the reasons discussed. The actual cushion that you think you are setting up to protect you, actually harms you in the end. I will always proclaim that when you price your home to negotiate you will get just that; negotiations to reduce the price. Price it right and the desire for a Buyer to negotiate will be reduced when they see the home priced fairly.
Your home was not seen by qualified Buyers, your home languished on the market and then when you see your home isn’t selling you reduce the price trying to chase the market to catch up and Buyers see this and will want a discount thinking you are likely anxious or perhaps even desperate, to get your home sold; not a winning home selling strategy when trying to get top dollar for your home.
What would the Buyer’s thought process be, had you not priced your home higher to allow room to negotiate?
Your home would be seen by Buyers who could afford your home
Buyers who want to buy, would be ready and able to see your home now!
Buyers would view your home, as the just ripe tomato on the vine, ready to be picked; picked for them and their family to move in to.
Buyers would not see any stigma attached to your home with it being just fresh on the Real Estate market
Buyers will not think to discount their offering price with a home that is priced fairly, in fact, due to it being priced fairly they may be willing to offer more to make sure that the other Buyer they just saw leaving, as they were coming in to view your home, didn’t try to buy your home by outbidding them.
And, if by some chance, you have a Buyer who wants to try and negotiate too far off on your home that has been priced right, then you’ll want to make sure that you have a skilled Real Estate Agent going to bat for you who is well versed in the art of negotiations. Your Agent will need to know your local Real Estate market, as I know my local Coral Springs Real Estate Market and Southeast Florida Real Estate Market and know that you home is indeed priced right, at fair market value. The knowledge, skill and persistent determination of your Real Estate Agent is ever powerful here in order to benefit you, the home Seller.
Don’t just take my advice regarding pricing a home to negotiate. You can read more about such damaging effects of overpricing by visiting the veteran Real Estate Agent from Massachusetts, Bill Gassett’s article discussing this very same thing. You should know that this detrimental pricing strategy is seen nationwide and Bill will explain to you how the same goes for his neck of the woods: Damaging effects of overpricing a home