Buying and selling properties are mind game.
Either offline (houses, office buildings, stores, etc) or online (blogs, websites, web retail, etc.), properties involve a level of strategy to get better deals. Usually, the buyer gets better deal than the seller, due to the nature of the industry.
You usually sell to cash in your assets. Set the price too high, buyers will go to other sellers. Period.
So, how to get higher price tag for your property sales?
If you can afford it, don’t list your properties for sale!
Having yours FSBO-ed actually reduce the overall value of your properties.
Consider this simple example – I look for FSBOs properties, and of course, I negotiate for price tags that are as low as possible. But if I fall in love in a property that is not FSBO, I’ll contact the owner and ask him/her whether his/her property is for sale – two possible answers:
- No, thanks for the interest
- Sure, if you want to, at the right price
You see, the second answer is tactical – as a buyer, I expect a higher than market value asking price – why? Logically speaking, I asked for it, not him! Because I want it, I have to prepare myself to put an offer higher than the appraised market value.
Get it? :) So, really, how to get higher price tag for your property sales?
- Persuade your broker to disclose your property as an ‘insider’ property – not officially listed, but do offer as the right buyer comes – this will give the sense of scarcity and secrecy – people love it!
- Don’t FSBO your property yourself – rather, ask your colleague or friend to mention about it to their clients and friends – word of mouth is powerful tool to spread the news without giving out the sense of urgency.
- Related to number two above, don’t give the impression of urgency in your property sales – common things people do is to say “urgent! need money fast!” – so wrong! Your price tag will plummet accordingly.
Keep in mind that buyers are human, too – they react to the situation they are in. If they sense that you need the money badly, their offer will reflect this with lower than market value offer. Tease them a bit with secrecy and subtleness – and watch your price tag rises.
Ivan Widjaya
Property mind game