The majority of sellers misunderstand how to price a home. They think it is smart to list high because they can always come down. I hear it all the time: "Brad, let's just test the market." The reality is brutal: overpricing does not result in a higher sale price. In the current gawler real estate market, buyers are educated. They research online extensively. If a house enters the market too high, you don't get lucky. Actually, you sell the competition.
When they view your listing priced above market, they measure it versus other local listings. If you are asking too much without extra value, the buyer will choose the other house. You have effectively used your home to sell the competition. Working in this town, it frustrates me because I know the seller loses. Buyers decide value, not the seller. If you ignore the market feedback, nothing happens.
A weak agent will say yes just to get the listing. It is a deceptive practice. They realize it is too high, they will ask for a reduction after a month. At that point, the damage is done. I give you the facts immediately. You might not like it, it makes you money eventually. Don't be fooled of high prices. The market is not a test lab.
The Problem With Starting High
The concept of trying a high price suggests people will stick around. The market is dynamic. The first two weeks is the most critical time. This is when your listing is "fresh". People ready to buy are waiting for new stock. They see your new listing and make a snap decision. If the price is ridiculous, they scroll past. They don't inspect. They just wait.
Sellers often say, "they can bid lower." But they don't. In the Australian culture hate confrontation. When the disparity is large, they feel embarrassed to offer. They believe you won't budge. Instead of starting a conversation, you get silence. You lose the opportunity to start negotiations. After you correct the mistake, those best buyers have bought elsewhere. You have lost your best audience.
Trying a high figure boosts other agents. If a buyer is looking in gawler east real estate, they inspect multiple homes. They see a value-for-money house and use your house as a benchmark. You are asking a premium for the same features. The other property shines. They buy the other house. You were the comparison tool. It is a hard reality, but it happens every weekend.
How Buyers Search In Gawler Today
Buyers search by price brackets when looking online. They have a budget cap. If your home is worth $680,000 but you ask for over $700k to "test the market", you become invisible. You are sitting in a higher value class. They are better. Your property doesn't stack up in that higher bracket. Simultaneously, your actual target market are filtered out. You are in no-man's land.
Understanding the psychology matters immensely. No one wants to get ripped off. They are cautious. When they see a high price, they become skeptical. They start looking for faults. "Is the agent dreaming?" They analyze harder. However, if the price is attractive, they feel hope. They worry someone else will get it. This feeling pushes offers up. You want buyers fighting for your home, not skeptics.
Across the region, it happens over and over. Listing just under a bracket often sells for more than starting high. Why? The attractive entry point brought in ten groups. The market forced the price beyond expectations. The expensive option sat idle. It sold for less after a long wait. Tactics win over hope every time.
What Happens When A Listing Sits Too Long
As days on market increase, the lower the price. The numbers don't lie. When days turn into months, people ask questions that something is wrong with it. The first question is: "How long has it been on?" Despite being a great home, the time on market creates a stigma. It smells like trouble. Purchasers think it has been passed over. They stay away.
Once you are stale, you are weak. They smell blood. They come in with low offers. You are forced to accept. The phone has stopped. If the strategy was right, you would have had leverage. Because of the high start, you lost control to the market. That is the price of testing the market.
I often resell homes after failed campaigns. My clients are frustrated. They lived in a show home for 90 days or more. It is stressful. They just want it sold. We usually have to correct the price to where it should have been and it sells quickly. But the sadness is that they could have sold months ago and likely for a better price if they started right. Delay is expensive.
Looking At The Numbers: A Reality Check
Consider the evidence. Looking at local data, homes that followed the evidence went under contract fast. Those that aimed 10% high averaged over 60 days on market. I can show you specific examples in your suburb. Take a look at, a recent listing was overpriced. Nothing happened. After several price cuts, it eventually went. But the final price was less than the agent suggested originally.
Contrast this with a vendor nearby who followed advice. We set a smart price. We had 40 groups at the first open. Competition was fierce. It sold for a premium. It isn't luck. The market is transparent. The market always wins. You can leverage it to your advantage. Professionals who know the math get the best results.
When we meet for an appraisal, I show you the evidence. I won't just give you a number to get you to sign. I present the comparisons. I will show you what sold and the unsold stock. You must be educated. It is your money. Do not risk it on a strategy that fails. Follow the evidence. That is how you maximize profit.
Setting A Winning Price Strategy
What is the solution? It starts with an honest appraisal. Avoid picking the person who gives you the highest price. Select the partner who shows you how they got there. Check their work. "Where is the data?." Without evidence, they are guessing. I base my advice on hard data and market trends. We analyze the market relevant to you.
We check current listings. Who is the competition? If there is inventory like your property, we need to stand out. We win on looks, value is the key. We find the "sweet spot" that draws people in but you don't leave money on the table. That is the strategy. It is a fine line.
If you are thinking of selling, call me for a chat about your home. I don't do fluff. I share the reality. I want a result, not just a signboard. I want you happy with the best result. Contact Brad Smith for a property appraisal services that works. Let's get it right from day one and get you sold.
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