IS THE PRICE RIGHT?????
How often are you asked by a Buyer is this house priced right? Sometimes it is but sometimes its not - either over or under - and you wonder what was the agent thinking? How did she/he come to this figure?
Over the last week or so, I've been showing a Buyer single family homes and we've come across a very nice traditional home that met her needs, location was good, had the right feel. It was a little dated but she could work with it. But, and yes, there's always a but, she felt that since the price was low there was something wrong with it or was the agent low-balling it to obtain multiple offers? So we viewed a few more houses that were comparable but not quite right - smaller lots with a few upgrades and priced $15K over the one she was interested in.
I did my comparables - nothing matched - I personally felt it was underpriced so was the agent playing games or did he feel it was a good fair market? I then decided to go and have a 3rd look at the house (alone) and noted the things that would need to be done i.e. furnace was in good working order but it was coming to the end of its lifecycle ($5K); carpeting needed to be replaced and Buyer would have preferred hardwood floors ($7K). Adding those figures to the asking price showed me the selling agent's train of thought. It then made sense and we made an offer based on the information we had and WE HAD A DEAL!
Somestimes, it takes a little time but if we dig enough and open our eyes we can pretty well figure out where the listing agent was coming from. I've also called the listing agent and asked the question, how did you figure out the price?
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