Final Thoughts On Pricing
Introduction
In this section, I cap off my discussion on pricing with a few final thoughts.
Our listed price should be about encouraging strong buyer engagement
Pricing one’s home correctly is a balancing act between being able to encourage the strongest buyer engagement, with being able to achieve the very best price!
Although a property listing is indeed a marketing tool that we use to help sell our home, it is certainly not a sales closing tool, which means that the listed price or asking price does not have to mean the final price or a figure that’s set in stone as the target price that we want to achieve. In other words, the listed price or asking price can be a price point that’s focused towards attracting buyers in order to help us achieve the target price, but does not have to be the target price itself on the listing. Simply put, the listed price or asking price is the fast price that we use to achieve the target price, which is the perfect price!
Remember, the one and only goal of a property listing is to simply encourage buyer engagement and attract buyers through the door - not to sell the property itself! The selling and negotiating only begins once the buyers are through the door - this is when we have the opportunity to achieve the best price, not before!
Our listing therefore needs to be focused on encouraging the strongest buyer engagement for our home, in particular, captivating as many of the right type of buyers as possible, so that we have as many of those buyers as possible to negotiate with for the best price!
Since the listed price or asking price does not have to mean the final price, it is not necessary to list our home at (or close to) fair or market price, but rather more necessary to list it at an attractive/saleable price to encourage the strongest buyer engagement for our home!
Otherwise, if we choose to list our home at a less attractive/saleable price (including at fair or market price, but especially at above the market price); then we are more likely to attract fewer buyers through the door, meaning fewer buyers to negotiate with, making achieving the best price difficult!
Our listed price can influence our bargaining position / negotiating power
It’s also worth pointing out that, if we choose to overprice our home or even price it at fair or market value from the outset, then the only direction we can expect to go when negotiating the price with buyers, is down!
On the other hand, if we choose to price our home in such a way that encourages strong buyer engagement, then we create a strong bargaining position for ourselves to be able to negotiate the price up!
Ultimately, our property listing is the gateway to our home, and our job is to ensure that the gateway is accessible to the right type of buyers, as the means to be able to achieve the very best price for our home!
Getting in touch with me
If you would like to discuss with me on any points regarding pricing, or if you need help or have any questions in general, click here to get in touch with me.
Over the next sections, I cover the other key elements of a property listing, starting with the property photography.
And so, I invite you to join me in the next section, where I discuss property photography in more detail.