Every listing we take to market starts off with two prices, the owners and the agents. Sometimes they meet and other times one’s higher and one’s lower. At the end of the day the only price that counts is what a buyer is willing to pay. The market is the market and against everything we say, want and do, once a consistency of value is recognised, then you can start looking at the overall picture to see if it suits your situation.
It’s always to good to take a conservative look at the market initially and market your property in an area that would be attractive to buyers. At the end of the day moving a price up is better than down and buyers will react differently to each one. With the price moving north it shows that there is strong interest in your property and increases the fear of loss which generally adds to the emotional price of your property which is where you want to be. When you begin to decrease the price, it takes authority away from your agent and the buyers realise that you’re chasing the market down and they hold the cards, this leads to low ball offers and in these cases, the buyer may come up a little, but you always seem to come down a lot more.
Either way, if your agent communicates continuously what buyers are saying and getting as much feedback about price, then it allows you to shift your price up and down to suit the market. If you act swiftly you will keep authority on your side and your agent in a position to have a stronger negotiation point. The only thing that you can’t do is fight the market. Once you start fighting what the majority is saying, then you will find that offers will only get lower and lower. If the market is not meeting your expectations then look at your other options such as leasing your property or staying there until the next cycle comes around.