That being said, your Realtor should be able to provide you with listing sheets of recent sales showing that the list price is the same as as the sale price. If they can't manage to do that, or they won't... then your distrust may be deserved.
Understand that the LISTING PRICE has one primary objective, to attract attention: It is not intended to be set in stone, and in many cases it is not even a good guideline toward the SELLING PRICE.
Some Sellers believe that by setting the LISTING PRICE high, they can always come down, and people will make an offer anyway: WRONG! Buyers will just bypass the property and look at houses that are within their price range. And six months from now, the Seller will slowly start lowering the PRICE, (this is called â€œchasing the curveâ€) and Buyers will be asking the question; â€œWhatâ€™s wrong with that house?â€ and â€œWhy has it been on the Market so long?â€
Other Sellers set the LISTING PRICE low, to attract multiple offers. (The correct strategy.) We are asked; â€œArenâ€™t you obligated to sell at this price if someone offers it?â€ The answer is probably not; for that to happen, you would first have to have only one offer, and secondly, the offer would have be exactly the same, down to the smallest detail, (please discuss this with your Realtor).
Another thought; Buyer will search for potential properties by groups; for example, $400,000 to $450,000, and $250,000 to $300,000. If your house is priced at $460,000 or $310,000, the Buyers will never see it. (something else to discuss with your Agent.)
We have found that extremely often, the LISTING PRICE that is set on SHORTSALES and REOâ€™s are not determined, nor even discussed with the Bank: The banks play their cards very close to the vest, they will not tell the Listing Agents any more than they have to; they will not give us their lower limits. So usually, the LISTING PRICE on a distressed property is a number taken out of the air.
If you are considering a property, have a Realtor do a CMA, (Comparative Market Analysis) to help you determine your Offering Price. If you look at enough CMAâ€™s, you will see the trends.
I know realtors want to help and want the best for their clients......but sometimes they don't understand the buying power that is now available.I AM ONLY STATING my opinion in my area!
Ron - one of these days, I only hope that powers that be at Trulia finally remove your answers for just how incredibly inappropriate they are. Consumers don't come here to get brow-beaten.
One way to double check is ask your Realtor to put some homes into a listing cart or portal for you. You can then track what the selling prices actually were in relation to the list price. You can do this yourself if you wish.
A Realtor can also provide you a list of sold homes in the area you are looking. The sold prices will show.
May I wish you the best.
Arizona Homes and Land
Lynne A Shapiro,PC,BA,CMPS,CRS,GRI
West USA Realty
Whenever a client is ready to submit an offer, it is good practice to review recent sales of similar homes in the neighborhood. This should give you a very good idea of the local real estate market and how much you should offer.
Of course it is not true that "most of the desirable homes are going for list price". Please remember that the asking price is how much the seller wants for the house. Some sellers will ask unrealistically high prices. You should never offer asking price without researching the local market first.
Jose Dias, REALTOR
Realty One Scottsdale
Best of luck,
Ok to sum up what does it profit an agent to lie to you...they risk loosing your trust and loosing all commission just so you can purchase something fast...not likely.
I keep seeing comments from Realtor haters or sales haters that really do not understand our industry... we help people purchase homes for income to feed our families.. most of us (Realtors) wouldn't risk our job for an easy sale. For one we can loose our license in the state and second. We love getting our clients what they want for less.
That being said, there are buyers like you that haven't worked a deal in this new economy where banks control the market. The price they offer is much lower than the competition so yes they are probably sell with or with out your help.. your agent is probably just letting you know the facts so that you are prepared and don't loose the home you want.
Best of luck to you,
Hope this helps!
HomeSmart, International Scottsdale
A more detailed answer is: you won't know if your Realtor is being straight with you regarding the list price--even if s/he provides you a CMA--unless you verify that info either via a third-party, or on your own. Let's face it: it's easy for one to manipulate the data in ways to skew the results. For example, an agent could cherry-pick the 3 highest priced comps to yield a higher CMA valuation; whereas, another agent could use the 3 lowest priced comps to yield a lower valuation. (I've experienced both cases first-hand.) As an engineer/investor, I can assure you that the statistical games don't end there; one could further analyze that data using a variety of methods. Yet, in the end, all you should really care about is getting great value for whatever price that you'd pay.
The experts can give you a good idea of what the current market value of a property is, but no one else can help you to determine whether or not you'd get the best value for that price. That's a personal decision. For me, after having listened to my Realtors, and after having done my own analysis, I'm happy if the numbers work. In other words, that potential purchase would be a deal with great value to me, and that's all I need to know to pull the trigger on yet another deal.
Speak to your realtor - explain your concerns - he/she will most likely ease your concerns. There are some excellent buys in SCW and the summer months are an excellent time to house shop in the community. When the winter visitors return, you will most likely have more competition for properties in SCW. Ask your realtor to explain the current market conditions in SCW to you - ask to see the comps - and I'm sure you will feel more confident about your purchase decisions. Good luck with your home purchase!
Licensed Associate Broker
Accredited Buyer Representative
GREEN Designated Agent
William Raveis Legends Realty Group
Most homes are now priced to buy. If you want the home buy it.
Have your agent go over a comparable market analysis with you which will show recently sold homes that are similar to what you are looking for in the area that interests you.
That way you can see the list to sales price ratio as the statistics will speak for themselves.
Prudential Connecticut Realty
If what the realtor is saying is making you uncomfortable, its probably the true. Realtors interpret the market, they do not make it. Buyers decide what your home is worth. Not you or your realtor.
Good luck in your endeavor.