Frequently Heard Pricing Objections That Have No Relationship to Value : St. Louis Loft Source

• May. 2, 2008 - Frequently Heard Pricing Objections That Have No Relationship to Value

Frequently Heard Pricing Objections That Have No Relationship to Value

"Another Agent said it was worth more." – It isn’t an agent that puts a price on a property. It is established by the market which includes what similar properties have sold for recently and what the supply and demand is currently.

"Our home is nicer than those houses." – This is a subjective opinion, generally, from a biased individual (the seller). What is “nice” to one person may not be to another.

"People always offer less than asking price." – This makes the assumption that everything is over-priced and that isn’t the case. There are lots of properties that sell for full price or sometimes even higher. By over-pricing a property to allow for the buyers negotiations actually encourages lower offers.

"We can always come down on our price." – Studies have shown that the longer the home stays on the market, the lower the price will be. Sometimes, it can be lower than what it would have sold for if it had been priced properly in the beginning.

"We have to get that much out of our home." – There is no rational reason why a buyer should pay more than fair market value for a person’s home just because the seller has a need for the money. The buyer usually thinks that they have a good need for the money also.

"My neighbor was able to get his price." – “His price” may be less than he was asking and the only way to know is through examination of the MLS or county records. Many times, this objection is a misunderstanding about what the neighbors “thought” the property sold for.

"Let's try it at our price for a month or so." – Trial and error is generally not an acceptable way to price a home. The initial price enthusiasm of the market generated by a new listing is lost and can’t be regained.

"The buyers can always make an offer." – Unfortunately, the correct buyers who might make an offer won’t even be looking at it because it is out of their price range. Buyers don’t want to look at homes they can’t afford just to get their hopes dashed and have to downsize their realities.

"We paid more than that for our home." – Regardless of the reason, ignorance of value or downturn in the market, appraisers don’t care and neither do the buyers.

What you do and do not do have an effect on how much the home sells.

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