How Can A Low Price Lead To A Record Sale?

Pricing your home below market value to effectively trigger a sale is a strategic marketing tactic. It is a bit of a science that is closely intertwined with overall marketing plan. The biggest sellers make when selling their home is that they overprice it, and are unable to steer the ship fast enough when they get it wrong.

Here are a few fundamental reasons why you should consider underpricing:

You want buyers to see your home first, and if other similar homes are priced lower than yours, you won’t be top-of-mind.

This pricing strategy creates a sense of urgency on the part of buyers where they have to make a decision, or else someone else will.

Buyers will only be motivated to pay top dollar if they truly have to in order to secure a property, not merely because a seller wants a high price. It is competition that brings the price up. Switch the buyers’ focus from you (the seller) to the other prospective buyers.

You don’t have to settle with the first offer that comes along. If you price high, wait, and eventually get an offer with no other competing offers, the prospective buyer is in the drivers seat and the pressure falls squarely back on you.

You don’t know how much a motivated buyer can and will pay – and by listing high you’ve already established a cap on how much the property will sell for. By pricing low, their is no cap and sales often exceed a sellers’ initial expectations if done correctly.

It encourages the buyers with the highest motivation to come forward and participate.

It drastically reduces the time on market, allowing for a more responsive market. If you purchase a property and need to sell your existing home to finance it within a short period of time, this is the way to go.

It exposes your property to a wider audience

It is perfect for times of low inventory or when you have an attractive home that needs to stand out from the crowd.

This strategy is one that we have mastered over the past twelve years with great success for our clients. We don’t pick random numbers out of the sky, but rather, analyze the local market and determine the tipping point that causes buyers in the market to react. We aim to reach a minimum of 3 target group with this strategy (eg. first-time buyers, move-up buyers, downsizes, do-it-yourselfers, contractors, builders, etc.), which then enables us to broaden our search to find the right buyer.

If you have any questions, feel free to reach out.