QUOTE THE PRICE YOU WANT, NOT A 'BAIT' PRICE - ARTICLE 9 OF 9

It sounds good in theory – quote a low price to ‘lure’ purchasers in, and then work to get the price up from there.

But why do NO negotiation EXPERTS favour this method?

Bait prices trap sellers as well as buyers.

Never allow an agent to use a low false price to ‘bait’ buyers. If you use a price range or guide or a ‘by negotiation’ strategy, you are encouraging buyers to offer you less. Your ‘bait’ price will ‘hook’ you more than the buyers!

Sure, a lower ‘bait’ price may attract more buyers, but it attracts the wrong buyers. The lowest price the buyers see will become the highest price they want to pay.

And never tell anyone – including your agent – the lowest price you will accept because that too can quickly become the highest price you will get.

Learn to Love Early Buyers

High prices often come early. The only problem with buyers who make good offers early in the marketing campaign is that their offers do not look so good when compared with the first, and current, asking price – which is always higher than the true market price.

American sales trainer, David Knox, said “Sellers do not come down FROM Market Price; sellers come down TO Market Price”

Ask your agent to tell you about the Endowment Effect, which was discovered by Harvard University professor, Dr Max Bazerman. The Endowment Effect explains why sellers often expect more than their properties are worth, but this expectation should not stop you from getting the highest price.

Your agent should give you an accurate estimate of the likely selling price of your property. Although this figure is likely to be less than you expected, the agent’s likely selling price range should be the TRUTH.

All negotiation experts say that if you want to get a high price you should start high.

We agree with this, but this creates a problem with early offers which, as was previously said, are often the highest.

The problem with early offers is that, although they are often the highest offers, they…….

Look terrible when compared with a high first starting price.

Low prices often come late, so be careful – the buyers you reject when your property is first placed for sale may be the buyers prepared to pay the best price.

The longer your property stays on the market, the number of buyers for it usually gets lower, not higher. And your price will often get lower too.

So treat early offers with respect.

For more information on selling your property in today's market please call Frank Pike at Marsellos Pike Real Estate on 5495 7777.