I just represented a buyer that had made a verbal offer to a FSBO. The buyer wanted to purchase this property and had a relationship with the owner before she died. So it was emotional and the purchase price the buyer had offered reflected the emotion.
I asked the daughter of the deceased owner how her and her brother arrived at the sell price. She said, "I can ask any price I want"! "Yes you can"....was my reply. The problem is with your philosophy, buyers do not have to buy. My buyer had made a verbal offer and the seller decided to raise the sell price by another $5000.00 and disregard the original verbal agreement. It wasn't in writing so...move on.
I did the comps and showed data from the MLS on sold homes. I informed the seller the offer was $5000.00 to high already and increasing the price was something the buyer would not consider. I had the buyer with me so she was a bit hurt with the daughter raising the price.
The new owner now knows the market will not support the inflated price. The buyer knows she has offered to much and the reality is the seller has a choice. Sell or keep the property. The seller is an out of state seller using market information from a 1000 miles away than might as well be a million miles....you can not relate one market to another for value.
The FSBO did have one thing right. You can ask any price you want! The FSBO didn't consider the other side of the coin....buyers do not have to buy or pay an inflated price in this market.....
I was viewed as the enemy.....as soon as I stepped in the door and when I added the statistical pricing data her face turned a bright red. I felt she had information overload......being caught overpricing the property.
I had pre-warned the buyer that the information may not be favorably accepted. We left leaving the FSBO with a call if you are interested in selling. I mentioned the fact that any buyer would have to have the home appraised before a lender would create a mortgage.
So can you really ask any price....or is it a myth? The truth is you can ask "any price" you want as long as a buyer will pay the asking price. The other truth is your property is worth what someone is willing to pay for it!
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