CHALLENGING THE MARKET

WE HAVE HEARD OF A PRICING STRATEGY AT TIMES CALLED “CHALLENGING THE MARKET”. THIS IS OFTEN ASSOCIATED WITH LISTING A HOME FOR SALE AT A PRICE HIGHER THAN COMPARABLE PROPERTIES HAVE SOLD FOR IN THE PAST.

OUR OPINION IS TO CAREFULLY CONSIDER THIS AS A POSSIBLE SELLING STRATEGY OF AN AGENT TO WIN YOUR BUSINESS OF LISTING WITH THEM RATHER THAN ONE TO BENEFIT YOU(ALTHOUGH THIS IS ONE WAY NEIGHBORHOOD VALUES DO INCREASE). ONE SELLING PHILOSOPHY IS TO OFFER TO LIST YOUR HOME HIGHER THAN ANYONE ELSE FOR A COMPARABLE PROPERTY. THE THEORY IS THAT YOU WILL BELIEVE THAT YOU WILL GET THE BEST PRICE WITH THAT PERSON AND SO CHOOSE THEM. IN REALITY, THE AGENT MAY BELIEVE THAT IF THE MARKET ESSENTIALLY REJECTS YOUR PRICE AND THEN YOU COME TO THE REALIZATION THAT THE PRICE MUST BE REDUCED, THAT ISSUE WILL BE DEALT WITH WEEKS AFTER THE LISTING CONTRACT IS SIGNED AND YOUR BUSINESS COMMITTED TO THAT AGENT. IF THE MARKET IS ACTIVE AND YOU FIND YOUR COMPETITORS ARE SELLING THEIR HOUSES YOU MAY HAVE FOUND THAT THE MARKET HAS REJECTED YOUR PRICE AND YOU MAY HAVE MISSED SOME MARKET OPPORTUNITIES.