Wednesday, November 19, 2008
What is your reserve price?
The most common question asked by a bidder during a real estate online auction is "What is the reserve price?" In other words, what is the bottom line price you will take?
Would you ever tell someone your bottom line price when you're selling a property?
I hope not.
If you do, you've just lost all power to negotiate.
I'm surprised that about 20% of the seller's using our system disclose their reserve price when asked this question.
To me, it doesn't make sense to tell anyone your bottom line price, especially when bidding is open.
Instead, I think it's better to respond to that question by inviting them to submit the highest amount they will pay.
After all, it's very easy for them to do.
Hope that helps next time you're faced with that question.