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 Know, said, “Sellers no 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.