Pricing your home for sale requires the art of finding a perfect balance.
A low price point will encourage a timely sale by providing value to prospective buyers, but you could walk away with a sum below your home’s true market value.
Listing higher than the market dictates could turn buyers away, and may result in the home lingering on the property shelf with little or no buyer interest. A stigma is often associated with homes that have been on the market for a while.
Vendors who find themselves in this situation can often be led down the path of discounting in order to secure a sale.
Vendor discounting is the percentage between the original asking price and the end sale price of homes sold by private treaty. This can become prevalent when market conditions soften.
Vendors misread the market change or perhaps choose to ignore it, and list their home expecting boom-time pricing, only to have to adjust their price guide later.
It is crucial to understand the factors that influence the price point of your home in order to set the right asking price from the start. Due diligence should be conducted to help understand the market conditions before setting an asking price, as well as seeking advice from industry professionals.
For buyers looking to secure a discount on a home they think is overpriced, it is worth trying an offer, although a figure too low could put the seller off.