Home Buying – Beware Aggressive Pricing
Home buying in a buyers market should be fairly straightforward and, generally speaking, it is. However, there are some traps that home buyers could fall into if they are not careful and one of those is aggressive pricing. This is the reverse of overpricing.
Why is aggressive pricing a possible trap? Properties that look good but are under priced can attract several buyers. If, like many buyers, you ‘fall for that property’, you could get caught in a bidding war that pumps up the price. This is essentially what happens when two or more parties decide that this is the house ‘they really want’.
Sellers are now using this tactic in an attempt to achieve a good price and to obtain a quick sale. The higher the asking price, the longer it tends to remain unsold – the lower the asking price, the more attention the property will receive. There are times when what appears to be a bargain is not always all that it seems – this is one situation.
How do you avoid the aggressive price trap? Easy. Don’t fall in love with just one property. In fact, as it’s a buyers market, select two, three or even four properties you really like. Negotiate on each, one by one, until you find you can settle at an agreeable price. Remember, while your offer can be binding, a counter offer cancels the previous offer. This means you can move on to the next property on your list.
By selecting multiple properties, you are in control of the negotiation phase. If another buyer makes an offer that exceeds yours, you can rationally decide to either make a new offer, or simply move on to the next property – the aggressive pricing tactic won’t have caught you out.
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