listings sold are a lot higher. We are seeing a compelling story
between the expectations of sellers and the reality of what todayâ€™s
buyers are actually willing to pay.
Licensed Real Estate Agent
Century Homes Realty Group llc
Direct Line: 347-932-0609
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.)
Different Banks have different philosophies about pricing their properties: You cannot draw any conclusions without a good analysis.
Have your Realtor do a CMA, (Comparative Market Analysis) to help you determine your Offering Price. It is the surest way to determine the Market Value of the property.
I have many thoughts on your ideas here. First of all I do not think you should place the house on the market until you are actually ready willing and able to sell. Your strategy sounds like an experiment rather than someone who actually wants to sell their home. What are you going to do if you get lucky and get a really great offer, are you going to sell the house? If that is the case, just go into it with the mind frame that you are going to sell now.
If you just want to ask a high price to "test the waters" so to speak, you may be shooting yourself in the foot. You see, when the house sits on the market for too long it will get stigmatized in a negative way. People will think that there is something wrong with it and/or the price is just WAY too high. Once that happens, even if you take the house off the market and put it back on, rest assured, people, especially real estate agents will remember it and the negative stigmatization will still come into play. Or worse yet, they will see you lowered the price and think you are desperate.
Besides, if it turns out you do not sell, you will not be able to tell how the market will change during the course of a year. Just because you did or did not get certain numbers now, does not mean you will or will not in a year from now. There have been times in the history of real estate where market values would increase or decline by 10% or more within the span of a year. As a matter of fact, many areas hit hard by Hurricane Sandy are experiencing massive depreciation right now which will probably taper off once things get back to normal in those areas. As another example, interest rates on mortgages are at an all time low right now. A 30 year fixed mortgage carries an interest rate that is a full 1% less than it was a year ago. That give the buyer more purchasing power. A year ago a 30 year fixed mortgage for $500,000 would have cost a qualified buyer about $2,460.00 per month, with today's rates that same mortgage would cost $2,175.00. That gives the buyer $65,000.00 worth of additional buying power!
If you like to gamble, maybe your idea is worth while. I would dare to say that a better idea would be to have a (or several) real estate agents who specialize in your area come into your home and give you an estimate of its value. While this is being done the agent(s) will also show you similar homes that have sold in the neighborhood as of late along with home that are currently for sale. This will give you an idea as to where the market is at and how much you can potentially sell for. Then you can decide if you prefer to sell it now or if you want to wait.
I have been selling homes in Brooklyn since 1993 and would love the opportunity to discuss this with you further and/or assist you with selling. Please feel free to contact me at anytime. Good luck!
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783