But, if the buyer's pocket is being considered on the search, and if the location and community is already a key factor, in this hypothetical situation, chances are, buyer and or buyer's agent are researching all the properties in that location/community, and the lower priced property should have much higher chances to be seeing and not missed, than the higher priced one.
All just hypotheses though. The best way to measure it, is getting with the other listing agents in the complex. Why don't you promote a broker's open house? I would be curious to know the outcome. Thanks!
Mark Palace, CEO/Founder
Palace Properties International, Inc.
It would be a very rare circumstance that I could ever image raising the price of a home because it had not sold at a lower price. Hard for me to image suggesting such. Although I have had a seller insist on such before, against my advice. It was quite interesting, as I had several people - buyers and agents - notice and ask why.
I would suggest, instead, try to determine if competittve units were selling (in your complex or nearby ones) and find out why buyers chose the competition over yours.
You don't say if anyone has been showing the property. Have there been any recent sales in the subdivision? My research tell there are areas in H.P. that have had little or no activity in over a year. If you are getting showing what is the feedback? What is the condition of the unit? Have other units sold in the subdivision? What is your competition? You need to know the answers to these questions. I've sold many t/h in Hanover Park over the years and recently the market there has been hit harder than some of the surrounding areas.
Why I thought raising the price may help:
When a buyer calls and says, I want to be in "X" city, and cannot go over "$" and I need min "Bed Count" & "Bath Count", and they add, I want it in move in "Condition", here is the natural thought process that enters my mind:
Based on my limitations (X + $ + Bed + Bath + Condition) = (aprox 70 properties)
Now, from experience its easy to assume that the higher priced homes with these specifications will be either due to one of these 3 factors: 1. Most Updates 2. Size 3. Seller Overpriced (I will not know until I go in)
As an agent searching though limited pictures, and remarks, it is safe to say that I may find for example 7 neighborhoods, holding aprox 10 properties within each area. I have a client that works during the day and wants to be shown about 14 properties over a course of 3 days.
I would probably show them:
---2 homes per neighborhood to narrow in
Therefore showing (2) x 7 neighborhoods = aprox 14 homes
Therefore back to my original question: Wouldn't we start at the top of the price range hoping that these homes offer the best "Move in Condition, size, updates for the same money? I think â€œyesâ€, which means my lower priced property is being judged based on buyer perception of the higher priced homes and will assume the less expansive homes offers LESS.
My lowest listed property offers more than the homes which are $10k+ listed properties, but will not be seen and the neighborhood will only be judged on the higher priced homes.
Sorry for such a goofy mathematical approach, but this little "key hole" concerns me and I'm very curious to see what you think.