How you price your property is one of the major factors of selling your property competitively. Quote the property too high and nobody enquires on or inspects your property. Price yourself too low and have buyers squealing underquoting. So, is a price range or set price the right method for you?
Having a set price on your property will give you the ability to present your prospective buyers with a transparent number that you will sell for. As much as this is appreciated by buyers, if that number is just a little too high, they won’t waste their time to come and see your property. On the other hand, if the price that you would accept is at a competitive range, have an influx of buyers compete for your property will still give you opportunity to sell above your asking price. I find that a set price being advertised is usually beneficial in cases where an owner is adamant on their asking price. Another time a set price is better suited, is on a property that has been passed in. Usually in these cases, the property will be priced at the vendor’s reserve.
A range on the other hand can give you a taste of both worlds. Leading into your campaign with a more open mind, a range can draw in low end buyers at the bottom of a range, yet still have a higher expectation with a ten percent range advertised. Ranges are appropriate with all different methods of sale, especially during an auction that is advertising price. Even though there is a range advertised, depending on how the market perceive your property, you can still gain plenty of competition and sell above the range.
I’ve always believed using a range is the best way to go. The majority of sales that I’ve been involved in, has used a range and many have been able to sell above the advertised range. They are effective and give you the benefit to invite low end competition, which is vital when searching for the best price. Though a set price has it’s place, if you’re caught between the two, then always go with a range.
The following advice is of a general nature and intended as an opinion and broad guide. For all legal, financial or real estate advice you should obtain independent professional advice to do with the specific nature of your circumstances before making any legal, financial or real estate decisions.