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How Sellers Price Their HomesHow Much Should I Offer? 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. The main reason we
emphasize the education phase of looking at homes is because that is the
best way for you to know value. When you review and study 40-60 (or more!)
listings, then drive by 10-20 and look at 5-10, you will recognize the
"Hot Listings." You'll also recognize the "dogs." 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 gives them the highest
promise. There is a tendency by some real estate agents to give the seller
a high "value" 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. The longer an
overpriced home is for sale, the more likely we can get the seller to face
reality and sell at a fair price. 2. A Little
Overpriced! These sellers fall
into 2 categories: • Those that feel
their home is worth every penny of their asking price. • 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 4 weeks 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.
Perhaps the real estate agent recommended too low of a price. These homes
usually sell within 7-10 days, at or above the listed price. There are
usually competing offers.
Bank Protection Even by carefully
studying homes for sale, it's difficult to establish Fair Market Value. If
you're obtaining a new home loan, you'll be protected by the Professional
Bank Appraisal. Home lenders want to make sure that you don't over-pay for
a home. If the home does not meet value in the eyes of the bank appraiser,
you'll be informed. At that time, we can re-negotiate the sale price or
void the agreement and refund your earnest money deposit. Our job is to ensure that you have the tools and information you need to make an informed decision. We'll help you prepare the offer. Then we'll present it to the seller on your behalf and try our best to get it accepted at your price and terms! Call us anytime at 425-954-4020 or toll free 1-877-954-4020 and ask for Chris Mattix. Copyright © 1998-2005 Chris Mattix All rights reserved. Reproduction in whole or in part in any form or medium without express written permission is prohibited.
Chris Mattix |
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