Many owners start the sales process full of optimism. „We'll try a high price first - we can always go lower.“
An understandable idea, but one of the biggest mistakes when selling property in Nuremberg.
An advertising price that is set too high sounds strategically clever at first, but in reality it often leads to financial disadvantages, loss of time and massive uncertainty.
In this article, I show why an inflated starting price rarely works, what the specific consequences are and how I support sellers in choosing the right pricing strategy.
Why the starting price is so important
The first published price influences the entire marketing process.
Interested parties assess your property within a few seconds - and the price decides whether they click on at all.
Too high an advertising price leads to this:
- that serious buyers ignore the offer
- your property looks unattractive compared to similar properties
- that fewer visits take place
- that valuable weeks go by without you receiving any real feedback
The starting price determines, whether interested parties get in touch - not just the negotiated price.
Why owners often overestimate the value
It is completely normal that salespeople often want to start higher. Many orientate themselves on:
- sales prices told by acquaintances
- Online estimates without a database
- Wishful thinking („I won't sell for less than this amount“)
- emotional attachment to the property
- high sums that others have allegedly achieved
When selling property in Nuremberg, however, it regularly becomes clear that what happens in your head rarely has anything to do with the actual market dynamics.
A realistic valuation is based on:
- Market value: technically derived market value
- Standard land value: Orientation for the property value
- Market analysis: Demand in the specific submarket
- Reference properties: real sales prices instead of adverts
- Material value method: Significance of the substance
- Income capitalisation approach: Importance of rental income for rented properties
It is precisely these components that clearly separate the desired price from the market value.
How a price that is too high influences purchasing behaviour
Buyers are very sensitive to the price-performance ratio.
If the price does not fit in relation to the property, one thing happens immediately:
Distrust.
Typical buyer thoughts:
- „Why is this property so much more expensive than others?“
- „Is something missing here? Is the condition worse than in the photos?“
- „The seller is definitely not willing to negotiate, it's not worth it.“
- „If the price is so exaggerated, the valuation may not be right at all.“
A starting price that is too high not only filters out unsuitable potential buyers - it actively discourages good potential buyers.
Why demand collapses faster than expected when prices are too high
Each property has a time window in which the greatest demand arises - the first 10 to 21 days after publication.
It is precisely this period that determines how successful the marketing will be.
What happens if the price is too high:
- Hardly any suitable enquiries
- Little response on portals
- Hardly any feedback to correct the price
- Declining placement and visibility
- Bad effect: „Why has the property been online for so long?“
After this period, there are often only interested parties left who want to trade significantly - or are looking for special cases.
Why a later price reduction is rarely the solution
Many salespeople think: „Then we'll just lower it at some point.“
The problem is that the damage has already been done.
If the price is lowered too late:
- the property appears „worn out“
- buyers suspect that something is wrong
- ask interested parties: „How much further down will you go?“
- the negotiating position decreases enormously
Price reductions are a signal for buyers: „There is room for improvement - and a lot of it.“
How an inflated price ultimately brings in less money
Paradoxical, but frequently observed:
Sellers who enter the market at too high a price end up less than those who start realistically.
Causes:
- Property remains on the market for a long time → Value appears lower
- Interested parties see the process as a „difficult sale“
- Prospective buyers negotiate more aggressively
- Sellers come under time pressure
- Financing for buyers becomes more complicated if banks cannot understand the inflated price
A realistic starting price is therefore not „cheaper“, but economically smarter.
How to set the right starting price
The pricing strategy is never based on guesswork, but on a structured evaluation process.
These include:
- Market value: as a central orientation
- Standard land value: an important component, especially for houses
- Market analysis: demand, competition, sales prices achieved
- Reference properties: real comparative values
- Material value method: Significance of the substance
- Income capitalisation approach: indispensable for rented properties
- Target group: Families, investors and owner-occupiers react differently to prices
A starting price that is realistic and doesn't just sound good only emerges when these factors fit together.
Why buyer value decides instead of seller wishes
Selling property in Nuremberg is crucial:
A property is worth what a buyer is prepared to pay - not what an owner would like it to be worth.
Realistic prices ensure that:
- Request more suitable interested parties
- Organising structured visits
- Negotiations on an equal footing
- Banks can understand the financing
- the sale is faster, more stable and less stressful
It is precisely these factors that ultimately determine a successful sale.
But does a realistic starting price automatically mean less profit?
No. A realistic price:
- attracts more interested parties
- ensures competition
- leads to higher, more stable offers
- strengthens your position in negotiations
The greater the demand, the better the chances of a good result.
Checklist: Is your starting price dangerously high?
Answer honestly:
- Have you estimated the price yourself - without a valuation?
- Do you rely heavily on neighbours or online portals?
- Have several estate agents quoted very different prices?
- Did someone promise an unusually high figure to „get the job“?
- Have hardly any enquiries been received for weeks?
- Have you already had the thought „Maybe we have to go down“?
If you answer „yes“ to several questions, your advert price is probably too high.
Conclusion: A listing price that is too high costs time, money and nerves
I see this regularly when selling property in Nuremberg:
It's not the property that's the problem - it's the pricing strategy.
A starting price that is too high leads to
- lower demand
- long marketing period
- Distrust among interested parties
- worse negotiating position
- lower final prices
A realistic, well-founded advertising price is therefore not a risk - but your greatest advantage.
It shows buyers:
This property is fairly valued.
This sale is serious.
This prize has substance.
