Sellers may think pricing their home high will create some negotiating room for them, but this strategy is seriously flawed as I point out in the book.
“But what this actually does is lower the number of potential buyers that see the home. And we know that limiting demand like this will negatively impact the sales price of the home.”
The better strategy is to actually price a home slightly lower than the desired price. This way ensures that more potential buyers will find the listing appealing and create greater demand. The end result of this approach is often a bidding war which results in a final sale price that is actually higher than what the seller was hoping for. This may be the single most important revelation in this section.
Another important point in this section is that the job of a good agent isn’t to just tell a client whatever they want to hear. They should be upfront and honest:
“Great pricing comes down to truly understanding the real estate dynamics in your neighborhood. An experienced professional real estate broker will take the time to simply and effectively explain what is happening in the housing market and how it applies to your home. You need a broker that will tell you what you need to know rather than what you want to hear.”
