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Fixed Price

Fixed Price

 

What is it?

This means that a property is listed with a definite price.

 

Advantages to the seller
 

·         If they choose, a high profile marketing programme puts the `spotlight' on the property adding a competitive edge that strongly favours the seller.

·         If the property is priced correctly it will attract a lot of interest, and in some cases have multiple offers resulting in a premium sale price.  The fixed price may make it easier for buyers to determine if the property is within reach.

·         The fixed price gives the buyer a price guideline and allows for a property search by price on real estate websites.

 

Disadvantages to the seller
 

·         It is easier to over or under price the property.

·         Buyers may discount the property without inspecting it, by judging it solely on the price. This can effectively limit the market for that property.

·         The property becomes comparable price-for-price, feature-to-feature with all other similar properties, normally resulting in the seller experiencing a downward pressure on the price.

Research reveals that as many as 80% of the buyers referred to them are self imposed rather than bank imposed on price.  That is they have the ability to spend more but have a self imposed price limit.

When a buyer first starts shopping they generally seek to spend less than what they ultimately end up spending.  Many buyers when they find a home they love will make an emotional decision and justify the price they pay to obtain the home. Priced property can fail to attract these self imposed buyers.

 

Benefits to the buyers      
 

·         The fixed price will make it easier for buyers to determine if the property is within reach.

·         They can submit an offer for consideration at any time and it does not always have to be cash.

·         As the listing Harcourts consultant, you can educate the buyers at a 'buyer's interview'.

 

 

Benefits to the sales consultant
 

If the property is well priced there will be a lot of interest in it, as a certain percentage of any market still prefers to know exactly what the seller is asking for their property.


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