The real estate market can be very complex these days; but mix in emotions and the occasional ego, and it can be even more complicated. Enter your real estate agent, who will sort out the best approaches for both buyers and sellers.
For sellers, correct pricing is a must. A recent Zillow survey showed that homeowners who purchased their property in 2007 or later were overpricing their homes by an average of 14.1 percent, and homeowners who purchased between 2002 and 2006 were overpricing about 9.3 percent above market value.
The key here is market value. The market has changed drastically since 2002 and sellers should look at current market value, not the value when the home was purchased years ago. Buyers aren’t taking into consideration what you paid then, but what the house is worth right now.
Both sellers and buyers should review the comparable properties for sale that your agent will provide. These comparables offer a good snapshot of current values for homes similar to yours.
Overpricing a home is very counterproductive in this economy. Most likely, the property will sit on the market for a while. The longer the property languishes, even with subsequent price reductions, the less desirable it is. Follow your agent’s pricing strategy instead of your emotions for a quick sale.
Buyers, too, have high expectations, but for lower prices. With the buyer’s market in full swing, buyers are looking for a great bargain, to “make a steal.†Again, your agent’s comparables will guide you to a fair offer that is a good deal for you.
Some buyers are tempted to make a very low first bid. That’s called low-balling. Just like a seller pricing a property too high, an extremely low bid can be counterproductive. This can insult the seller and shut down any further negotiations. If you really want a property, take your agent’s advice on a reasonable offer and that will assure communication that can lead to a happy ending for both parties.