Real Estate Info

How Do Sellers Price Their Homes And How Much Should I Offer ? - Next

We're often asked by our clients,

"How much under the listing price should we offer?"
This is an excellent question. The answer is difficult.

Sellers price their homes differently for 4 basic reasons:

1. Ridiculously Overpriced!

These sellers have listened to a real estate agent over-inflate the value of their home in an effort to obtain a listing. There is a natural tendency on the part of sellers to list with the real estate agent who promises them the highest price. Knowing this, there is a tendency by some real estate agents to recommend to the seller a high price in an effort to obtain the listing. These homes can be 10-20% overpriced. These sellers may need a "dose of reality" for a few months before they begin to realize that their home is way overpriced as compared to others in the area.

2. A Little Overpriced!

These sellers fall into 2 categories:
A) Those that feel their home is worth every penny of their asking price.
B) Those that want to leave a little "negotiating" room.
These homes can be 4-10% overpriced. Perhaps 75% of all homes for sale are priced
in this range.

3. Priced At Fair Market Value.

These sellers have carefully and realistically studied other homes for sale. They have priced their homes very competitively. These homes usually sell within a few weeks (or even days) at or very near the listed price.

4. Priced Below Fair Market Value.

These homes are priced below value. Perhaps the seller wants a fast sale. These homes usually sell in a few days or hours, usually at or above the listed price. There are usually competing offers and you may need to make your first offer your best offer.

And here's how to find that house…

If you haven't signed up yet, and would like your free subscription to our updates of all the new listings in your area and price range, just send me an email with what you'relooking for, your phone number and the best time to reach you.