Did you ever see the ad that says…
“HURRY ! Buy Now Before We List with a Realtor !”
Sounds like a fate worse than ________. And but of course, if a realtor is involved, the price has to go up….the price the seller has to net will have to take into consideration what the commission will be on the sale and the net profit will have to remain the same…of course.
After all, the seller should be able to choose the price that their own house sells for…they paid the mortgage, made improvements, did the updates, managed the maintenance…it should be a homeowner’s right to choose the price….shouldn’t it ?
The short answer that is echoed by ethical realtors everywhere is ….No. The seller doesn’t choose, the realtor doesn’t choose…the market selects. Similar homes that have sold in the area have sold for $X. The similar home prices are what an appraiser uses to determine the amount of a mortgage that a buyer for that home can expect to be lent.
If a seller “adds the commission, adds the tax, adds the improvements, updates, sprinkles in some sweat equity, adds some appreciation for good measure….and arrives at a Realtor List Price…the house will not appraise for that amount. In addition, when a buyer compares the now over priced house to other houses in the market priced at an appraisable price, it will pale by comparison. Buyers are smart….Buyers with Buyers’ Agents know what prices were paid and how the over priced house compares to other priced to sell.
List with an experienced Realtor….who will tell you the truth about the price of your home…market it to as many prospective buyers as possible and bring it to a successful closing. Now there is fate you can live with …happily ever after.
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