In this video, I answer three questions frequently raised about pricing. Why can’t I start higher? Surely I can just come down later?

There are a couple of reasons why this isn’t a good idea. Start too high and you miss that initial marketing period when all the buyers that have been sitting just waiting for your home to come onto the market walk away because it’s too expensive. Serious damage can be done here.

I don’t want you to ‘try it out’. I want you to do the work and get it right first time. That is imperative. Put it on close to market value and watch what happens. Of course there are no guarantees, but the other way is just not logical.

But we need this much or that much to do what we want to do. No one cares! It’s that simple. No one cares what you need to do.

I’ve had to say to sellers before, “Then let’s put it on the advertising: ‘Sellers need 20% more the market value because they’re building and spend too much.’ Some see the funny side but…How would you respond to that as a buyer? You guessed it.

It’s like if you have a Toyota and want to buy a Porsche. Now, no reflection on Toyotas, I’ve got one but you can’t ask the price for a Toyota that you want to pay for the Porsche. We paid this much so we need to recoup our costs. It is an investment and we need this much to come out of it. Not going to happen if the market is not there.

Markets in all areas of commerce work this way. “We paid this much for our shares so we need to get that back.” But if the price isn’t there, you gunna have to wait. It works exactly the same in real estate.