Weighing sellers’ expectations against market realities can be a delicate dance
When it comes down to it, the most important advice a real estate agent can give sellers is how to price their Boston luxury high rise condo. No matter how beautiful or well-maintained a your luxury condo may be, how many upgrades it has or how well it shows, if a home is not properly priced, it’s going to be a tough sell.
The battle for agents most often lies with aligning what sellers’ think their Boston condo is worth with its true market value.
Here are seven pricing myths that often get in the away:
1. It is better to price the home on the high side because the seller can always come down. If buyers are interested, they can make an offer.
Well, not quite. If a Boston condo is overpriced, a seller risks losing potential buyers who aren’t stretching their search into an uncomfortable price range.
The asking price sets the stage and may invite or dissuade buyers based on the dollar amount. Just as you would painstakingly prepare your luxury high rise condo for sale, you never get a second chance to make a first impression price-wise.
2. If a home is priced just right, a seller risks leaving money on the table.
Actually, the opposite is true. A well-priced Boston condo tends to generate a lot of interest and can result in multiple offers.
A shorter marketing span brings strong offers that could result in a home selling for over asking price.
Buyers are less likely to play “let’s make a deal” and nit-pick every little thing; they feel the urgency of competing with other interested parties for the same house.
3. The price gets better with time. If it doesn’t sell this time, the seller will get a better price by re-listing next spring, next summer, etc.
It has been said before, but it needs to be said again: A Boston condos that sits is not like fine wine — it does not get better with time.
The longer a Boston luxury condos stays on the market, the more likely buyers are to question its value.
4. X price is as low as the seller will go.
When faced with an offer that is less than what they want, sellers love to draw a line in the sand and dig their heels in over an arbitrary number that they deem to be “their bottom line.”
Who decides what a property is ultimately worth anyway? Buyers see the glass as half empty versus half full, and in some markets and real estate cycles, they are holding the cards.
Sellers can decline an offer based on a number, but they may never get there with another buyer, and a subsequent offer may be lower or layered with conditions and complications.
5. An offer should come in close to asking price.
Sellers are often disappointed at the initial price when an offer is received and ask “why so low?”
Does a seller really think a buyer is going to be generous with their initial offer?
Unless it is a really hot property, priced aggressively or in a low-inventory market, no buyer is going to willingly offer more than they have to, especially on a first pass. They want to get a sense of the seller’s flexibility or lack thereof before deciding their next move.
6. Outdated features shouldn’t impact the selling price.
So the home has “upgrades” circa 1990 with white melamine cabinets, beveled edge laminate counters and builder grade 12-by-12-inch tile with brass fixtures, and the seller expects the buyer to pay full asking price or close to it?
The buyers are looking at how much they are going to have to spend to bring the home up to today’s standards and are going to deduct accordingly when formulating an offer.
7. The buyer’s offer is simply too far off the asking price to counter.
A bird in the hand is worth two in the bush. A buyer has stepped up and put pen to the paper with a proposal. An offer is an invitation to negotiate and begin discussions about the property.
It can be easy to get offended, but it’s best to keep emotion out of negotiation as much as possible and work in good faith with what’s presented. A seller will learn quickly if it looks like a deal may come together.
Pricing a property is a delicate dance. The bottom line is that the market doesn’t guarantee as strong a price as sellers usually want or expect — unless the home is a highly sought after, rare type of property.
Setting the stage with the right pricing will often set the tone for how smoothly the listing experience will unfold.