Every owner wants maximum dollar for their property. The only thing is, how do we determine what the best price is? There is the price that we want as owners and there’s the price the market will pay as market value. Healthy competition can lead to emotional prices, which can surpass our wants and break records. But, sometimes the market just doesn’t want to play ball, or should I say low ball. So, what to do?
In my experience, if your property hasn’t sold within a two to six week duration through competition, then you are most likely going to chase the market down a little from your expectation. This doesn’t mean that you are taking an offer lesser than market value, it means that the market doesn’t agree with your expectation and is giving you signals that you should shift your thinking.
The biggest trap is always thinking a better offer might be around the corner. I’m not saying that it isn’t, though in most cases you may find yourself in a position where you should have taken one of the stronger offers earlier on. I’ve seen it happen numerous amounts of time, vendor’s reject what is a strong market offer and then try to chase that number months down the track, only to accept an offer a lot lower.
The longer a property stays on the market, the greater the chance it stales and only attracts bargain basement buyers. Usually after months of being on the market, you decide to move on and accept the next offer that comes your way and usually that offer is not only a lot less than your original asking price, but a lot less than your previous offers.
The feedback your agent gives you through a campaign should be used to gauge the market and know what to expect. It’s not a ploy to drive your price down, nor is it wise to remain strong headed about your expectations. Take the information on board and ensure that you use it correctly to safeguard yourself from accepting a below market value offer. Your property is worth what someone is willing to pay for it, not what you want because you really want it. If market is aligned with your expectations, above it or below it, make sure you get the best offer that your property can achieve.
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.