Padded List Prices
What do you do if you’re a Seller in a Buyer’s market who’s worried about lowball offers?
At least a few succumb to the temptation to pad their asking (“list”) price.
Their logic?
The higher their initial price, “the more room they have to negotiate.”
Flawed Logic
Well, yes.
But that presumes anyone looks at their home — let alone makes an offer on it.
The problem with overpriced homes is that they fare poorly relative to their (self-selected) peer group.
So, a $300k home that’s listed at, say $400k, is going to be compared to nicer homes . . . and found wanting.
The better strategy?
Price appropriately — and fend off any lowball offers that materialize.
P.S.: I tell prospective Sellers concerned about negotiating leverage: ‘if you really want room to negotiate, why not start out asking double what your home’s worth?’
