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.
When you apply for a mortgage and an appraisal is done on the house, this is what the appraisar will use.
No clear answer if I am telling the truth. So many variables play into the equation. Find a good agent, have them show you what it is worth and what it should sell for an make an offer based on that. It may only be worth 100k or it may be worth 140k, you just never know until you see what it selling in the local area. Educate yourself on the local market.
Have your agent provide you with recent sold comparable information to find out what the homes have been selling for. Looking at active listings is not what you want for your information. This is what sellers or their agents believe the property is worth. Looking a actual sales information tells what other buyers are paying for a simialr home. Other things to consider are the condtion of the home you want to make an offeron, and possibly the seller's motivation. If the property has been on the market a long time the reason is usually because it is overpriced. Happy Hunting.....
All the best,