"Below Market Value" Its time to stop the myth.

"Below Market Value" Its time to stop the myth.

If it has not SOLD and you reduce the price and state "Below Market Value" you are building on the old myth

If you're dropping prices, clearly the "market" rejected the property at the old price and condition so with the current reduced price it may now be in line with "marker value".

I understand as agents we do what we have to draw attention to our listings and this is just one very old trick (that I have never understood) used to make buyers think that they are getting a bargain.

But every-time we send out the flyer with REDUCED - BELOW MARKET VALUE it  sets up a mindset that the sky is falling and housing prices are dropping so Mr. and Mrs. Buyer sit on the side lines and wait the house of your dreams will soon take a price reduction and you will get a home "below market value".

I see agents over and over again selling everything "below market value".

So where is the bottom of the market and second are these agents are looking at the current market when they price homes. Or are they just taking the listing hoping they can work a price reduction later.. adding DOM to an over priced listing does no good to anyone.

I would encourage all listing agents to start putting honest fair CMAs on display with the flyer's and home information. Show the buyer that this home is price A.) in line with comparative recent sales or B.) below recent comparative sale. (below recent sale is allot different then "below market value")

We have to stop telling buyers that homes go on Clearance instead we have to help buyers understand that the market is not fixed and that each home needs to be valued 1.) on its own features and benefits and 2.) what those same features and benefits have recently sold. Not on some idea that all homes are over priced and we can crush the seller into accepting a low offer.

So fellow super star agents lets start to turn the market around today .. 1.) by getting rid of the mindset .. of Clearance Real Estate 2.) ..price the home based on SOLD 3.)  Show Buyers the CMA that you used to determine the Market Value at the time of offer. 4.) coach other agents to stop posting "BELOW MARKET VALUE" instead try Reduced below Recent comparative SALES. (lets the buyer know homes are selling )