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.
If the buyer can't negotiate or won't go up from their initial it is possible that they are at their highest and best and in that case they will move on to another home. Buyers are very savy today and know that the amount of homes on the market are plentiful and have many to choose from. If they are not "100%" sold on your home they will likely move on.
I like to counter for my Sellers with a reply that includes the justification of why we feel the price should be higher than what you offered...listing the "kitchen remodel. or the new roof" for instance. This reminds buyers about aspects they may be overlooking in the process and reminds them of the Value of the home they are trying to buy.
Good Luck and Let your agent do the worrying that is what you pay them for, its our JOB!
Kimberly McCampbell, Realtor CMS PS
"The McCampbell Team"
Multi Million Dollar Producer
Every buyer is different. And it depends on how the Realtor they are working with educates them on the current Market conditions. The answer could be yes to both. If you have a buyer the is not familar with The Woodlands or the Market in Texas even, they very well may come in with a VERY low offer. If you have a buyer that is somewhat familiar but thinks they still may get a deal, it is possible to get an offer from them. If their agent has spent the time to explain what homes in your neighborhood are selling for, not asking prices, but sales prices, and they see that your home is either, priced right, too high or to low it could affect weather they even look. If you would like more information or to know what the marketin your neighborhood it doing right now give me a call.
Karen Upp 281-660-4611
To answer your question directly - YES they are making offers that low. That is about 6% below asking price which is very common because the average list to sales price in The Woodlands is about 96% and that gives them room to negotiate.
If your house is priced where it should be that does not mean you should plan on giving in to a lower sales price than what the market is selling at in your neighborhood. Make sure you hire a solid Realtor with lots of experience in The Woodlands. I always recommend you interview at least 2 or 3 to get clear understanding of what price to list your house for. Remember a Listing Agent does NOT just put your house on HAR and let the Buyers Agents bring you Buyers - they should have a solid marketing plan that allows your house to be seen by as many potential Buyers as possible.
If you have any questions please do not hesistate to call me at 936-499-1067 or check out my website at http://www.bradcarlson1.com.
#1 Individual Realtor for Prudential Gary Greene, REALTORS - RFO 2008 & 2009
We take our clients from amount approved only nothing over.
National Featured Realtor and Consultant, Mortgage Loan Officer, Credit Repair Lecturer
Follow me on Twitter: http://twitter.com/Lynn911
First of all you have to ask yourself if your home is "priced right" meaning at market value at $ 239,000. A good realtor is able to provide a Comparative Market Analysis (CMA) for you. You do not want to list your home overpriced just to try it out for some time and see if you get any takers.
Second for the buyers; some home buyers are looking at higher priced homes and will make "lowball" offers and try to get the deal or the steal of the market. Others are strictly looking within their prize range and will not even find your home on the market.
If the offer price is an insult depends on the seller.
Finally you should know if your home is priced right and the market will support the asking price - your home will sell! In determining the asking price you should also consider how quickly you want or need to move, how many other homes are on the market just like yours and in what shape is your home.
There are many questions to ask and you should talk to a REALTORÂ® to determine the best strategy for you.
Helpful information can be found on the NAR web page.
If you have further questions please don't hesitate to call me at 936 525 0144 or email at firstname.lastname@example.org
Best Regards and Good Luck
Keller Williams Realty
You are so smart to be thinking through the consequences of the listing - presentation - showing - offer - negotiation - closing processes and how they all interact with one another.
If you list your house with an agent that has both lots of experience and strong negotiation skills, you will benefit from their strategies and techniques for getting you the best offer in the least amount of time and net you the most equity for your home.
When a good agent prepares for the marketing strategy session with you, there is a lot of data that will be gathered. You will learn the ratio of asking price vs selling price...so, as an example, if homes similar to yours are selling for 97% of the asking price, you will need to prepare for negotiation prior to putting it on the market.
There are so many things I would like to tell you about the process of selling your home and getting the maximum equity - but it would take more space than we have in this media. I invite you to call me or email. That way, we can take all the time you need to feel comfortable that you have the information to make informed decisions.
To answer your original question - if a buyer is interested in your home, they should write an offer through your listing agent. However, if the comparable sales show your house is overpriced, many buyers will keep looking because they do not want to insult you. As a buyer, it is unwise to make an offer that is insulting, because the seller will often "dig in their heels" and refuse to negotiate in good faith.
The only way to navigate the complex world of real estate negotiation is to have an advocate working hard for you. I am Kathi Frank. You can reach me by phone (832) 515=5754 or email, Kathi@KathiFrank.com