4 ways to display your property price to potential buyers
While you may have identified what your property's worth and how much you'd ideally like to sell it for, there are 4 common ways to display your price (otherwise known as your display price) to potential buyers. Which method you choose comes down to your property and the type of buyers you are targeting.
Option 1 - Using a price range
By using a price range (such as 650,000 to 700,000) you indicate there's flexibility in what you'll accept, which can open up avenues for negotiation. You also increase the appeal of your property to a wider pool of buyers looking within a lower price range who may be willing to increase their budget if they fall in love with your property. The problem with this approach is you need to be strong at negotiations and you can waste your time on buyers who simply can’t afford your price.
Option 2 - 'Offers from...'
The idea behind this strategy is you advertise the lowest possible price you're willing to accept for your house in the hope you receive a few offers and start a bidding war. In this situation, you need to be prepared to accept the advertised price in the event you only recieve one offer (buyers tend to only offer what is necessary or lower if they are game). This option is possibly more effective in a sellers market when the conditions are in your favour and buyers are forced to bid against one another.
Option 3 - The hidden price
Usually reserved for more exclusive properties, hiding your sale price can create a sense of mystery and curiosity. Instead of displaying your price, you adopt terms such as 'Price on application' or 'Refer to owner' with the goal of generating more enquiries because buyers are not put off by the price. It can, of course, backfire because buyers tend to be impatient expecting to see prices upfront, which may deter them from exploring further. This strategy should be reserved for very unique properties.
Option 4 - State your reserve
It may be plain and simple, but sometimes it's just better to be open and honest about your reserve price. This price may be up to 10% more than the price identified through your research or by having a property evaluation, but it's the price you want. This openness creates a sense of trust between you and your buyer to begin negotations. It's always a good idea to understand your market so you can substantiate your asking price with stats such as comparable sales in the area.