Pricing your home is a combination of art and science. Years of studying the open market and crafting a keen sense of business and human factors is like an art, whereas the analysis of statistical information on homes that have sold (or not sold) is undeniably a science. Put the two together and you get data combined with experiential knowledge, the unbeatable combination present in an experienced REALTOR® like Ron.
Everyone wants to sell their home for the highest possible price, however if you start out by listing too high, you take a significant gamble. A new property on the market is highly appealing to potential buyers. These educated buyers, although interested in your property, will investigate your listing because it’s new but rule it out without requesting a showing if they don’t see fair market value.
When other properties on the market are consistently being chosen over yours, potential buyers begin to assume there’s something wrong with it and pass it up automatically. Once a property has been stigmatized, you will be forced to drop the price, often below fair market value in order to offset the negative appearance of the property in the eyes of potential buyers.
If a seller tries to test the market by setting a high price and later doing a price reduction, the reduction will send a signal of weakness to buyers. Often, even those interested will let your property sit in order to see if you will further reduce your price.
As a final point, in Canada we live in a culture taught to pay the “retail price” for products and services. Even in situations where prices are negotiable, buyers would prefer to avoid the hassle of determining a price that is fair for both parties. Canadians would rather buy something that is “Priced to Sell” rather than negotiate.
The moral of this cautionary tale is this: get the best price for your home by pricing it right the first time. Ron believes in and does everything in his power to make sure your home has a strong showing the first time around in order to avoid having to do price reductions that will cost you more in the end.