Lisa and Jim's Northern Nevada Real Estate Blog: The home was priced right ... what should be offer?

The home was priced right ... what should be offer?

The home we want is priced right ... what should we offer?

Many Buyers are compelled to offer low because they've read, or been told, to do so.  Others think they have to do it because somebody did it to them in another market.  If the home you like is priced right ... get what you can and buy it. 

Smart Buyers are making offers based on their knowledge of the market and hopes for a good deal.  Ultimately they are accepting a negotiated price and getting what they want at a good value regardless how it compares to the listed price.  We recently saw an offer 22.2% below the list price of a well priced property.  The Buyers had to try it and they did.  Fortunately, they knew the market and recognized that the property was well priced.  Ensuing negotiations resulted in a price but .7% below the list price, less than a 1% reduction!  Both parties were happy and achieved their objectives.   

The values are all over the board these days.  We recently showed property and found homes three doors apart, the same plan by the same builder, that were priced $30,000 apart. They were essentially the same house.  One was priced right - the other deserved a "wake-up" offer.  In another neighborhood we experienced a discrepancy of $60,000 between similar homes.  In that case the lower home was priced by a very active local agent that had great knowledge of the market.  The other agent was from out of town and unfamiliar with the market.  Sometimes out of town agents are relatives, but more often they are sought out by Sellers because the local knowledgeable agents wouldn't tell the Seller what they wanted to hear.  Both of the homes $60k apart are still unsold, but which do you think has a better chance of selling?

Sellers and their agents must look realistically at what they are trying to achieve and plan accordingly.  It doesn't matter what you paid or what you owe - market is what market is.  If you want, or more importantly, have to sell then get a realistic Realtor.  One that will tell you the truth and make a plan that works for you for your situation, not just say what you want to hear so they get a listing hoping one of two things happens: 1. they find a fool and his money - rare in today's market, or 2. they list high at what you are hoping for, and then beat you up for a price reduction week after week, you concede and their slimy tactics are rewarded ... for them.

Our Advice:  Because of the great discrepancy in prices in the market place one must be really sure when pricing.  If it is priced right ... really right ... you will sell.  What your home was worth in 2005, or will be worth in 2009, is irrelevant.  If you want to sell today you can ... if you are positioned in today's market in a today manner.  That includes price, condition, showing availability, experience ... and intention.  If you don't need to sell - don't right now. 

 

If you need or want to sell ... do it right, price it right, and you will be moving.  The days of the uneducated Buyer are over.  If you are waiting for someone to come in and pay too much you might as well hunker down for a long winter.  Experience is Priceless!  Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, carsonvalleyland.com, 775-781-5472.

Comment balloon 2 commentsLisa Wetzel • September 05 2007 04:06PM

Comments

True True True.  Right along the coast where I am, the houses that are priced right are gone within hours of them hitting the MLS with multiple offers.  The ones priced above market just sit and expire...
Posted by ... ... (...) almost 11 years ago
Nothing worse than telling a buyer told you so.  Why underprice your dream home? 
Posted by Eric L. Cutler (Keller Williams) almost 11 years ago

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