Everyone Goes For The Low Priced Listings
I’ve Never Heard Of Those Interested In The Overpriced Ones
From my experience, the lowest priced listings always get tonnes of action. Many low priced listings even receive multiple offers and sell for more than asking price.
Although I help my clients look for the lowest priced homes, there are times when I tell my clients to consider the overpriced listings. It’s completely contradictory and unconventional wisdom.
So, why do you give them that advice?
There are times when I’ve seen overpriced listings that have sat on the market for a long time, all of a sudden sell for below market value. So how did that happen?
I thought about it for some quite time and started thinking in the shoes of the seller.
If I was the seller and I haven’t been getting showings or receiving offers on my property for a long time (probably because it’s priced too high), I may be more understanding if someone came and gave me a lowball offer. I may start to doubt my pricing strategy and convince myself saying, “well, it’s a lowball, but since I haven’t been getting much action, I’ll work with this offer…”
And before I know it, I end up taking a lower offer than I had originally thought of. I may be fed up with the lack of action for so long and just feel like getting rid of my home.
It doesn’t happen everyday but this situation DOES happen. Sellers often start off by not being motivated to sell, but as time goes by, many of them change their minds (especially during negotiations) and you never know, they may sell for lower than you had expected.
I work with clients who are buying who’ve told me that the highest they’re willing to pay is X, but during negotiations, suddenly their “MAX offer” goes up. They are able to pay more than what they have told me. The same goes with sellers. The client would say the lowest they’d take is X but during negotiations, they just want the deal done and they sell for lower than what they had previously told me.
What’s The Bottom Line?
Make offers, a tonne of them. Don’t get discouraged by overpriced listings. You never know.
For more information about this topic, feel free to email or call me.