Most Boston luxury condo sellers view the asking price as the future sales price. But your asking price is not your sales price. Your asking price is a strategic decision to position your condominium for what will hopefully be maximum exposure in the Boston condo market place.
Very simple proof that your asking price is not your selling price is that some Boston luxury condos sell well below the asking price, some sell above the asking price, and yes, some will sell at the asking price. However, even in those cases, it is important to understand that the asking price was still a marketing price positioning and it is entirely possible that money was left on the table by not creating a more competitive pricing model. That is especially true if you only received one offer. That indicates that you most likely disinvited the rest of the market place from participating in your home sale.
There is no exact to the penny value on any Boston luxury condo. When you truly embrace that reality, you will come to see your asking price as a marketing number and not the sales price.
The purpose of marketing is to draw in the entire market of buyers who could conceivably be interested in the product or service you are selling. Having said that, is the asking price of your Boston condo working for you or against you? Is it drawing people in or is it pushing them away?
Focusing Too Much on Price
Another Major mistake that people make around price is focusing too much on it to begin with when positioning their Boston condo for sale. In actuality, price should really not be all that important. But most people make the mistake of making it the most important thing or even the only thing.
Really, price should just be a supporting element to a proven plan and process to get your home sold with a deep track record of success. When price supports a larger plan and is part of a bigger picture, then it works in your favor to drive traffic. That is exactly how we think about it in our 5 Day Blitz Program.
But when price is acting all on its own regardless of market conditions or sales history, then it becomes the most important thing and the sole focal point. Most buyers will stay away and the ones who do bite will be just as focused on it as you are.
It would be far more ideal to have multiple buyers focused on the house and determined to win the home over other interested parties. Let’s get buyers to start worrying about one another rather than you—the home seller.
Building in “Negotiating Room”
Negotiating room, a.k.a. “Buyer Repellant” is one of the worst things a seller can build into their sales price. Especially when it violates the laws of “Virtual Shelf Space”.
Look, I understand that it is tempting to price your home higher hoping that will lead to more money. But heck, if that were the way things work then every one of us should price our homes for $10M, or even $20M. Why not? Case in point, one of my agents just recently put under agreement another agent listing which was a two-family in Somerville; bottom line, it went under contact $14ok above asking in less than 4 days. You will sell waht the market will bare.
the reality is that pricing your home above its probable market value and violating the laws of “Virtual Shelf Space” is really just a great way to push buyers away, dis-inviting them from participating in the bidding process, and forcing your condo to sit on the market longer than necessary. The longer your condominium is on the market the more power you are losing as a seller and transferring it over to the buyer.
The market is more than happy to pay full ask or higher if it deems the price you are asking to be in line with the market. But if you price too high then of course it will force you to sit on the market until you eventually begin to get “low ball” offers. It is no wonder that only those sellers who ever build in “negotiating room” ever have to negotiate very much. Those that don’t build it in often get multiple offers and see price float above ask. Thiniking about it.
Updated: 1st Quarter 2018