Many sellers make the mistake of trying to start high on pricing, hoping to sell their Chicago loft at the highest possible price, then assuming that they can lower the price down the road if the property does not sell. THIS IS A VERY INEFFECTIVE APPROACH. In fact, it’s highly counter-productive. Here’s why:

YOUR BEST SHOT AT A SALE IS IN THE FIRST 60 DAYS

We’ve all heard the saying, “you only get one chance to make a first impression”. The same goes for selling a loft- you only get one chance for a property to hit the market. This is where the property is first intoduced to agents and consumers alike. If you spend that time backpeddling from the wrong price you’ve virtually eliminated the chance to move forward into a contract. Months later when you realize that consumers rarely overpay, it will be too late. 

YOU HAVE A REDUCED NUMBER OF SHOWINGS

A basic rule in selling is to generate consistent showings for the property. With little activity, your chances of selling the property reduce dramatically.

MANY BUYERS WON’T EVEN KNOW ITS THERE

Since most buyers typically look within a specific price range, you are excluding potential candidates by pricing above their interest level. Sometimes the smallest price adjustment can open your loft up to a significantly larger pool of buyers.

SELLERS ALWAYS ASK “WON’T BUYERS ATLEAST MAKE AN OFFER?”

At first glance this seems like sound logic. In reality, overpriced listings deter buyers from further interest in the property because they mentally “move past it” thinking their offer and efforts would be in vain since they’d offer a much lower price anyway. That lower price as it turns out is typically a more accurate measure of its true market value. In the end it has the exact opposite effect as intended.

OVERPRICED LOFTS SELL THE COMPETITION

If you’re a seller, the best thing that can happen to you is overpriced competition. It makes your property seem like a great deal! So why would anyone want to help sell their competition?

THE CHAIN REACTION… YOU MISSED THE BEST CHANCE TO SELL IN THE FIRST 60 DAYS, EVENTUALLY THE LONGER MARKET TIME CREATES BUYER HESITATION, LOWER OFFERS, AND A WEAKENED POSITION DURING NEGOTIATIONS.

Once buyers realize a property has been on the market for a long time TWO things immediately come to mind. 1.) What’s wrong with this place? 2.) They must be getting desperate! In addition, as trivial as it may sound during the pre-listing process, please don’t underestimate the frustration associated with long market times. It’s a significant amount of work to properly prepare and continuously maintain a home for sale. 

It is imperative that the price is thoroughly researched with comparable properties in the area. Additional factors such as competition and the state of the current market also play a large role in pricing.  If your property is priced correctly, you’re taking the foremost step in avoiding long market times and a weakened position at the negotiating table.

Related posts

• Chicago lofts, Short Sales, Foreclosures, FHA, and the $8000 Tax Credit