CARY NC Is Pricing AT Market Value a Good or Bad Thing?

CARY NC  Is pricing at market value a good or bad thing?  I've been asking myself this because of the events of the past week.

Scenario:

I have a client for a depressed real estate market, who lost money on the sale of their home.  They are relocating to the Cary area where our market has remained fairly stable.  

Over the past two years our market has seen prices slip and days on market rise.  Sellers are frustrated.  Agents are hearing their frustration and are suggesting pricing homes AT market value.  Sellers are trading profit for a quick sale.

For Example:  

If a neighborhood is listing for an average of $107 per square foot.  Selling at an average of $95 per square foot, then list the home for $95/sq ft.

Agents brave enough to do so are seeing multiple offers in a few short days.  Yes, you heard me MULTIPLE OFFERS.  Boy that's something we haven't heard since, 2007.  

Problem:  

Buyers coming from depressed markets refuse to listen to the numbers and make adequate offers.  They lost money and no one is getting anywhere close to full price, even if it is market value.  I have a buyer who has lost two awesome homes because of this attitude.

Is it understandable? YES!

I tried to tell him that he is attracted to these AT market priced homes because of their great price.  Just like current gas prices, drivers will head to BJ's or Sam's Club to by gas at a discount instead of purchasing at the corner station.  Simple economics:  Everything else being equal, the lower price will sell first.

So I ask once again, Is pricing AT market value a good or bad thing?  


CARY NC  Is Pricing AT Market Value a Good or Bad thing?  was first published on CaryRealEstateBlogger.com  - a blog by Linda Lohman