- If the property is priced correctly it will attract a lot of interest, and in some cases have multiple offers resulting in a premium sale price.
- The fixed price may make it easier for buyers to determine if the property is within reach.
- The fixed price gives the buyer a price guideline and allows for a property search by price on real estate websites.
Disadvantages to the seller
- It is easier to over or under price the property.
- Buyers may discount the property without inspecting it, by judging it solely on the price. This can effectively limit the market for that property.
- The property becomes comparable price-for-price, feature-to-feature with all other similar properties, normally resulting in the seller experiencing a downward pressure on the price.
Research reveals that as many as 80% of the buyers referred to agents are self imposed rather than bank imposed on price. That is they have the ability to spend more but have a self imposed price limit. When a buyer first starts shopping they generally seek to spend less than what they ultimately end up spending. Many buyers when they find a home they love will make an emotional decision and justify the price they paid to secure the home. Priced property can fail to attract these self imposed buyers.