When I evaluate a property, many clients offer me to establish a higher request than the price I set and then, in the event that no potential buyer should come forward, open a real estate negotiation with him. In fact, they believe that there is nothing wrong with trying to make the most of the sale: “at worst, I can always lower the price at a later time”, they say. And I point out to them that what they claim could prove to be true only with a very great stroke of luck. In most cases, in fact, this strategy risks failing https://www.pioneerhb.com/we-buy-houses-dallas-tx/
The questions we must ask ourselves, before deciding the price at which the property will be put on the market, are the following: what is the minimum real estate negotiation margin allowed to avoid consequences that could jeopardize the sale? What is the most effective strategy? To make you understand, I decided to analyze two different situations.
Real estate negotiation – high price and margin higher than 20%
This is the situation I described earlier: the property is put on the market at a price higher than the real estate agent’s valuation, in the hope of being able to make the most of the sale. The reasons for this decision can be varied: need for liquidity, desire to recover the amount invested in the property before prices collapse, actual value of the property, etc. However, in most cases, the seller knows very well that it is unlikely that a customer will agree to buy a house for this amount. Therefore, he shows himself willing to lower the price of the property by up to 30%.
What happens when the real estate negotiation margin is so high?
In almost all cases, when a potential buyer consults an ad and sees a higher price than the market value, they don’t call to make an appointment .
After all, how does he know that the seller is willing to open a real estate negotiation?
He doesn’t have a crystal ball. He believes that will be the price he’s going to pay. Writing that the price is negotiable is not enough, if you don’t tell him how much. But then, if so, why not set a lower value from the start? You also realize that this situation is absolutely illogical.