So why do so many properties get listed without a price guide? Some agents suggest that listing without a price allows the market to determine the value. In my experience, this strategy often leads to inconclusive open homes with a lot of the wrong buyers coming. Many sellers are reluctant to list with a price because they don’t want to limit what they could get. This is a fair point, however if you have a price indication you are ensuring that the people that turn up on Saturday are the right buyers (ie can afford the property) and have some idea of what you are looking for. And you can always update the price guide if necessary.
Common sense is often elusive in real estate. When you sell, it’s basically a process of price discovery - if you do not attract interest with a price guide then you have a very clear market reaction. On the other hand, if you have multiple interested buyers then you also have a clear market reaction. The strategy from there is up to you and your agent.
One warning that should be heeded is to avoid over pricing your property. I would go as far to say that the only thing worse than no price is a price that is too high. Why? When your property hits the market it is worth the most in the first few weeks of listing; it's fresh and all of the best buyers want to see it. If you list at too high a price you may repel the best buyers and have to lower the price – clearly this will send a negative signal and potentially attract buyers looking for a 'bargain'.
The other thing to consider in the digital age is your digital footprint. In his recent (excellent) book ‘Real Estate Uncovered’ property writer Peter O’Malley refers to the importance of being aware of your digital footprint. The internet never forgets and potential buyers are likely to google your property - if they see it's been for sale for a while at different price points this will certainly weaken your negotiating position.
Ask yourself when you are looking to buy, which properties do you pay most attention to? A major law of marketing is to make your product easy to buy, this seems like common sense to me.
