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Talked to a commercial broker at my local diner and he flipped my thinking on listing prices
I was grabbing breakfast last Tuesday at Pete's Grill downtown and ended up sharing a table with a guy who does commercial leasing. He told me he prices listings 12% above market on purpose, not to get that number but to create room for negotiation without losing face. I always thought you set a fair price and stood firm, but he said buyers expect to haggle and feel cheated if you don't. Ever try listing high just to give a fake discount, or is that too gamey for residential?
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max_schmidt775d ago
Playing with pricing like that is just asking for trouble in residential sales. That broker's logic works in commercial because businesses can write off the extra cost and they're used to back and forth. For normal people buying a home, seeing a place listed 12% over market feels like a bait and switch, and they'll walk away thinking you're trying to take them for a ride (which you kinda are). I've watched listings sit for months because the seller wanted to "leave room for negotiation" and ended up having to drop the price below what it should have been in the first place. Plus, in a hot market, that fake discount just spooks buyers into thinking there's something wrong with the property. You end up wasting everyone's time and losing the deal if a more straightforward listing comes along.
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the_elizabeth5d ago
I read a study from some real estate journal that said homes listed with a round number like 300k actually sell closer to asking than ones with odd numbers. That broker's 12% trick sounds like a way to game the system, but buyers aren't dumb. They browse online listings all day and can spot a overpriced house from a mile away. I saw a house in my area listed 15k too high just for negotiation room and it sat for 6 months before they dropped it below fair value. In residential, people want to feel like they got a deal, not like they're being played for a fool. Better to price it right from the start and let the buyer feel smart for paying exactly what it's worth.
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