Pricing Strategy when buying a property
In this rapidly rising market, the wrong pricing strategy for offers could be costing you $100,000. Here’s why.
Real-world example
The other day, I had a client who put an offer in with me over 12 months on a property that he really loved. He missed out by about $5,000. He was super disappointed because, in the end, he could have stretched a bit more to win the house.
Now, the other day, he actually bought a house, and it was 12 months on. He’d spent 12 months going to opens, redoing his pre-approval, and putting in so much blood, sweat, and tears to actually buy another property. And it’s great that he’s finally secured one.
Pay a little more for the property that ticks all the boxes. Don’t spend another 12 months hoping to find the perfect house for $5k less.
The problem is he’s paid an extra $120,000 for a very similar home. If he had a stretch 12 months ago and paid an extra $5,000 or $10,000, he would now have around $100,000 to $110,000 worth of equity and be in a great financial position.
But he overthought his pricing strategy, and he was scared of paying too much, which cost him in the long run. This happens all the time in this market.
When you see a home that you really like and that ticks a lot of your boxes, you’ve just got to go for it. The person who wins is the person who steps up and pays a price that no one has ever paid before. It’s scary, but if you really want the home, it’s what you’ve got to do in this market. And if you do it, you will be rewarded in the long run. Thank you.