The hope is low prices will attract more prospective buyers, leading to faster sales. Other real estate agents in the Boston area report success with similar strategies in a housing market with an unprecedented glut of properties for sale.
Called “drama pricing" or “energy pricing," it is a drastic measure for difficult times. And it seems to run counter to the conventional strategy of selling your home for the highest price possible.
Buyers are “overloaded" with options and “only respond when they see a perception of value," said Angela Stamoulos, who teaches Coldwell Banker’s course on this pricing technique, which the firm rolled out this spring in Connecticut and last month in Massachusetts.
By grabbing buyers’ attention, she said, “the true market value of the property comes to fruition."
It’s no secret that when a buyer perceives real value in a home, they are more inclined to buy it. In a market with increasing inventory, there is one sure fire way of setting yourself apart from similar properties… price aggressively. This is been my mantra for 15 years, even in the booming market aggressive pricing almost always led to multiple offers and sales prices that exceeded the asking price as well as normal market appreciation statistics. It certainly gets people in the door!
That said, buyers in the current NYC marketplace are almost always bidding 10% or more below the asking price regardless of “perceived value.” I have found that in a cooling market that both aggressive pricing and traditional pricing (with room for negotiations) are successful. It really depends on the property. If you are selling something “unique” in a cooling market, it may be wiser to price with some room for negotiation. If there are several similar units on the market, an aggressive price tag will sell your place quicker than any other marketing “trick” out there.
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