Pricing critical as listings stock increases
December 15th, 2014 by Geoff Baldwin
With almost double the number of listings on the market in Western Australia compared to this time last year only those that are priced correctly will attract the attention of shrinking buyer pool according to RE/MAX WA Managing Director, Geoff Baldwin.
“When listing stock is in short supply and buyers are competing for properties pricing is important however when the market slows down, there are less buyers and are more properties available, using an effective pricing strategy is critical”, Mr Baldwin said.
“The days of coming up with a dream price then adding on another ten percent are well and truly over as today’s buyer is much more informed and simply does not have the time to be deciphering overpriced properties.
“It is a fact that most people are influenced by emotions when buying a property however they cannot become emotionally attached to a home if they never get to see it and overpricing is a sure way to restrict inquiry, viewings and to stale a listing to the market.
“Many sellers believe they can always bring the price down over time but one of the most asked questions when a buyer does like a property is “How long has it been on the market” and the fact is, the longer it’s been for sale the less the buyer is likely to offer.
“Rather than just placing a fixed price on a property experienced agents will be able to suggest alternative pricing strategies that have been proven and will ensure maximum buyer inquiry and significantly increased competition for a listing.
“The records show the properties that sell within the first 30 days of coming to the market invariably sell for a higher price than those that are on the market for longer periods of time however many sellers come to the market overpriced and by the time they adjust to meet the market their listing is stale, they have missed many potential buyers and end up with a lower sale price.
“The market will always slow down as we move towards the holiday season and this year the slowdown has been accentuated by a general lull in the state’s economy however there are still buyers in the market and they will always be attracted to and pay well for properties that are priced and marketed correctly”, Mr Baldwin said.