When a property is marketed with the traditional fixed price, sellers always ask about 10% above the market price for a number of reasons.
With some it is because they have a fear of underselling. With others, they
may have an over-inflated view of what their home is worth. At the very least,
all sellers will want a buffer to allow for any negotiation.
On the other hand, the pool of buyers looking for a property in a suburb and
a range react entirely differently. They form a triangle with very few above
the market price. Most will look 10 - 15% lower than what they will finally
pay. This is the entry point for all buyers.
The fixed price system services neither the sellers nor the buyers. As a result,
a new system was invented. This involves a “Buyer Inquiry Range”
and this is how it works:
Instead of setting a fixed price which eliminates at least two thirds of the
buyers, a range is set to attract buyers looking within that range.
The brilliance of this system lies in three significant points. First of all,
the controlled range invites all the buyers in the pool to the property not
just a few at the top.
Secondly your price is not declared because it is a Buyer Inquiry Range.
As a result instead of negotiating your price down from a fixed price it can be negotiated up and over the top of the range as it often is because of the far greater buyers and offers you attract.
Consequently this system allows us to achieve as much as 20% and more than the market price. It’s like drilling for oil. You have to drill down until you hit the oil layer then you get a gush of offers that can be negotiated up.
© 2003 Pilling Systems
