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. There are four basic ways that sellers price their homes.
How Do Sellers Price Their Home? (and How Much should I offer?)
These sellers have listened to a real estate consultant over-inflate the value of their home in an effort to obtain the listing. There’s a natural tendency on the part of sellers to list with the real estate consultant who gives them the highest promise. Some real estate agents give the seller a high “value” in an effort to obtain the listing.
These homes can be 10 to 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 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…
Perhaps 75% of all homes for sale are priced in this range. These Sellers fall into two categories:
- Those who feel their home is worth every penny of the asking price
- Those who want to leave a little “negotiating” room. These homes can be 4-10% overpriced.
3. Priced at Fair Market Value
These sellers have carefully, and realistically studied other homes for sale. They’ve priced their homes very competitively. These homes usually sell within 30 days, or less, at very near the listed price.
In an active market, timing is everything.
In the good old days, you might have the luxury of viewing a home several times — even dragging your relatives to see it — before you actually made an offer. “He/she who hesitates is lost” aptly explains buyers who dally when making a buying decision today!
4. Priced Below Fair Market Value
Perhaps the real estate consultant recommended too low a price.
These homes usually sell within 7-10 days, at or above the listed price. There are usually multiple offers in this situation, and you may need to make your first offer your best offer.
While it’s our intention to provide this information to a prospective BUYER in how homes are price, a SELLER might want to read this as they look at how to price their home to most effectively get it SOLD! If you are looking to SELL your home, we can help there too!
We are here to help you! Feel free to call us at 770.713.1505 or fill out the contact form and give us an idea of what you are looking for in your new home! We will be back in touch in a jiffy!