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Selling with an Asking Price

Benefits and Disadvantages of Selling with an Asking Price

Advantages to the seller

 If the property is priced correctly it will attract a lot of interest, and in some cases have multiple offers resulting in a premium sale price.
The fixed price may make it easier for buyers to determine if the property is within reach.

The fixed price gives the buyer a price guideline and allows for a property search by price on real estate websites.


Disadvantages to the seller

 It is easier to over or under price the property.

Buyers may discount the property without inspecting it, by judging it solely on the price. This can effectively limit the market for that property.

The property becomes comparable price-for-price, feature-to-feature with all other similar properties, normally resulting in the seller experiencing a downward pressure on the price.

Research reveals that as many as 80% of the buyers referred to agents are self-imposed rather than bank imposed on price. That means they can spend more but have put their own price limit in place. When a buyer first starts shopping they generally seek to spend less than what they ultimately end up spending. Many buyers when they find a home they love will make an emotional decision and justify the price they paid to secure the home. Priced property can fail to attract these self-imposed buyers.