So many of my clients ask the question "Why is the list price not the sales price?"
Isn't the list price what the Seller is asking for?
My answer - it
is sometimes, but right now not in this market. With limited inventory
and a high pool of buyers, multiple bids drive the price over the asking
price, making it difficult for both the buyer's agent and the buyer to
come up with a reasonable offer.
In many instances the list price is the starting point. If the house is in great condition, remodeled and reasonably priced (list) it will attract lots of buyers. Recently while showing my clients a home, we had to wait in line to go in - it wasn't an open house - it was agents showing. The neighbors thought there was a party going on.
Wouldn't it be great for our buyers if the list price was the sales
price. The first person submitting a full price offer would have a
chance at getting the house. Now, of course, price is not the only item
to consider when evaluating an offer. The strength of the buyer -
credit, down payment, work history, etc and the terms are also a
consideration. Also, let's not forget if someone is paying cash with no appraisal, then its hard to compete.
Where else do we see a price for a product and are willing to pay more?
In this market, are emotions over riding logic? Only time will tell.