As a professional Real Estate Agent I often meet people who ask this question. It does make sense doesn’t it, I mean that is what the negotiations phase is for, Right?
Can I tell you what makes me nervous about this strategy?
If you list your place high then the people who come to see it will be disappointed in it as it does not meet their standards. What is even worse is that the people who will buy your property probably will not even see it.
Can I tell you why?
99% of all buyers use the services of licensed trained Real Estate Professional. Part of our job is to sort through the Thousands of properties listed on the Toronto Real Estate Board system. We usually do this by asking our client a group of questions.
What sort of home do you need?
How many bedrooms and baths do you need?
What area are you interested in?
How much mortgage do you qualify for?
We then find the 3-4 properties that best suit their criteria show them the properties and ask them to make an offer on one of the properties. If you listed high then we would not even have picked your property to show.
Yes you can reduce your price later.
Let me explain how that strategy might actually work against you.
Most Buyers look at properties in their price range in the first couple of weeks of a property listing. This is because there is a group of qualified buyers looking at any given time. Once this supply has seen a new listing you have to wait for new buyer to enter the market.
Statistics show that homes net a lower and lower percentage of liust price with the passage of time.
Why is this?
Sellers priced high then lowered their price.
Buyers begin to wonder what is wrong with properties that stay on the market for an extended period and are only willing to offer a price lower then list.
Would you rather have an opportunity to manage a bid war or risk not having any offers at all?
For a free evaluation call
Dave Dunphy, Sales Representative, Sage Real Estate Ltd; Brokerage today.