what is the best approach on price setting?

[TILT]

I want to sell my house privately and was wondering the best way to set the price when marketing the property
If i want say 620K. Is it better to market the property at OFFERS UNDER 650K.
or TO ASK FOR OFFERS OVER 600K with a set time frame I tend to prefer the later which is a similar approach to an auction but provides you with more control.. Maybe there is a better method?

 

[TMNT]

I want to sell my house privately and was wondering the best way to set the price when marketing the property
If i want say 620K. Is it better to market the property at OFFERS UNDER 650K.
or TO ASK FOR OFFERS OVER 600K with a set time frame I tend to prefer the later which is a similar approach to an auction but provides you with more control.. Maybe there is a better method?

haha, offers under $650k, means that its asking for turkeys to offer $5 and a packet of cigarettes

 

[Jake Milne]

If you want 620 just quote a range ... $580,000 - $630,000

You'll quickly find if you've priced it too high or low from the interest in the market...

 

[TILT]

TMNT Take your point.. Same tends to apply to any set price where the offers come in well below set price .and if you set your price to high to compensate you won't get any offers .

Jake . I think your bottom price and top price are to low. Why put a top price on it? It just restricts your options ? Auctions never have a top price

 

[Spades]

630+ sale by set date?

 

[Colin Rice]

Not sure about the the east coast but agents over in the wild west usually put an "offers from" price. The "from price" is usually lower than what they seller actually wants, in order to generate interest. So a property they want 630k will be offers from 600k.

 

[Brady]

My 2c

Either way make that you capture the market of those wanting <$600k

Dont do $620,000 or $605,000 - $635,000. This will mean you loose a decent chunk of people that are searching up to $600,000

Maybe 'offers over $599,000' or '$595,000 - $635,000'


Best of luck, but as mentioned by Jake you will find out if its priced correctly.

 

[Colin Rice]

Best of luck, but as mentioned by Jake you will find out if its priced correctly.

The old adage "The Market Sets The Price" will always be true!

 

[robbiejuve]

If you want 620 just quote a range ... $580,000 - $630,000

You'll quickly find if you've priced it too high or low from the interest in the market...

From my IP hunting experience over the last month this method appears to be the best. People seem to focus on the low end and they see value so they rock up to the open.

Saw this done with low end being 20k below valuation, 53 people went to the first open (there were 2 before offers closed), property sold 50k above valuation, no doubt with so many people getting through the door a few got emotional, pushed their budgets and bingo.

 

[TILT]

Hate range pricing. Why on earth would you put a top figure on your property? Unless it was well above what you want.IMO a 580K to 630K price range would only kill the sale if i wanted 620K.It might work i Sydney in a hot market.
Leaves you very little room to move. Offers above leave you much more room to move. Offers from leaves you less room to move.

 

[T.G]

It depends on you area. Where are you located ?

 

[Chris B]

There are lots of different opinions about pricing strategies but the most important thing is what the property is really worth and how well can you negotiate to get the price you want. Like a job interview, you should have good answers prepared to the questions that buyers will ask.

If you have evidence of realistic comparable sales that justify a price of $620k, your home is advertised on the major websites, well presented and you say the right things to the prospective buyers, then you shouldn't have too much trouble achieving close to your price.

If you're home is not worth the price you want, then it doesn't really matter what you do.

If you're not comfortable negotiating then maybe advertising "Offers above $600k" will deter people from making lowball offers (and make you feel more comfortable), but many buyers are suspicious of this strategy when agents use it, as they often find out that the vendor is unrealistic and actually wants closer to $700k.

Either way I would recommend you research as much as possible. This article has some basic info: http://www.echoice.com.au/buying-a-home/negotiating-the-sale/

If you want me to send you some system valuations, PM me with the property address.

Good luck

 

[RyanMcHarg]

Be careful in Queensland marketing at "offers over" in Queensland as you can only counter sign up to 10% above the offers above price.

I work out of Brisbane but am happy to provide you with some advice if you would like, or can refer you to a good agent on the coast....

I want to sell my house privately and was wondering the best way to set the price when marketing the property
If i want say 620K. Is it better to market the property at OFFERS UNDER 650K.
or TO ASK FOR OFFERS OVER 600K with a set time frame I tend to prefer the later which is a similar approach to an auction but provides you with more control.. Maybe there is a better method?

 

[TILT]

Thanks Chris for your advice..Some of the worst sales people invite low ball offers. It achieves nothing except condition owners to accept a lower offer. The best salesman i have met dismiss low offers by calling for offers above, this educates buyers to pay more.

 

[Scott No Mates]

Do the rules for agency agreements apply to private vendors? I think not as the oft has no control over the actions of private vendors.

 

[TILT]

Good point Scott

 

[Jake Milne]

Jake . I think your bottom price and top price are to low. Why put a top price on it? It just restricts your options ? Auctions never have a top price

Hi Tilt, I appreciate your opinion but I disagree. Melbourne is the auction capital of Australia and the industry here usually abides by the adage "quote it low, watch it go".

Currently, much to many a buyer's frustration, properties are underquoted between 8%-15% of the expected sale price; often with the reserve being right at the top of the range.

The key here is to get people through the doors... When people smell a bargain they swarm like flies, only to find out on the day that 100+ people at auction will often drive prices 20% above the quote range...

Be aware that the above pricing method is only used for auctions. Private sale in Melbourne is usually advertised slightly over the ESR so when people low ball offers the result gets to the vendors reserve via counters.

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Thanks Robbiejuve, glad you agree.

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I think not as the oft has no control over the actions of private vendors.

Private vendors are still bound by federal legislation and cannot intentionally misrepresent their property.

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Some good advice from Chris B.

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Personally I do not like $XXX,XXX Plus / Or above advertisements but each to their own.