Hi everyone
what do you think of the ‘quote them low & watch them go’ theory used by many REAs?
I believe that (in most cases) it leads to all the interest coming from those in that ‘low’ range, the REA then going to the vendor with “all the interest is around X (the lower quoted range) & I think the market is telling us that the real value of the property is X. This then gets the vendor to roll over, accept X & the REA achives what he/she sets out to achieve, a sale regardless of the price. I suspect that buyers (owner occupiers, not smart investors like us!![biggrin]) who are looking for property in the X+ price do rarely look at properties in the X range as it is they expect it is not the quality that they are looking for.What does everybody think of this theory????
Does anybody (excluding REAs) subscribe to the ‘quote ’em low’ theory, & your reasons for thisI greatly appreciate your input
Troy
TroynBec
You can have more than you’ve got because you can become more than you are
Hi Troynbec,
You’ve given a fairly accurate description of what happens. Some agents are after quick turnover=fast commission=more commissions per year =more money for agent per year.
Why drag out the selling process trying to get the best price for the vendor when you can condition the vendor down to accept a price that will be snapped up quickly and then you can move on to the next sale?
Example-Why hang out to get an extra $10K for the vendor and get an extra 5% = $500 when you can move onto the next deal and get 5% of $500,000 = $25000. Think about it !!
Todd Burns
http://www.freepropertyhelp.com.au
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