Real Estate buyers often ask me, “will they take less?” and “how low can I offer?” I’ve been asked if I’m a good negotiator (see ARDELL’s post on this one). They also want to know the average % of list the “typical” house in Denver sells for.
Hold on, let me get out my crystal ball. Omph, it’s in there, just a sec…
O.K. The average % of list a typical house sells for is irrelevant! Some houses are well-priced, others are way over-priced. Every seller’s motivation is different and affects the pricing strategy they take. Some sellers are moving tomorrow and need to get the house sold. Others haven’t even started looking for their replacement home and don’t have any urgency at all.
Buyers who identify the one, particular house they love are then able to have an intelligent conversation with me about what we should offer. We can go into the MLS in Denver and look at what price reductions they’ve had already (% of list for which price would they be wondering about?), how long the property has been on the market and what comparable homes have recently sold for. Now we have pricing traction.
No, No to Zillow
Buyers - you should pay attention to the condition of the house when comparing the one you’d like to make an offer on to the comparable sales. Sellers - go out and preview your competition (at a minimum on the internet) before you price the property. I personally don’t recommend trying the valuation model on Zillow. I’ve done that exercise on enough homes to know that it’s very hit or miss in either direction.
To read the entire post click on:
(I Can’t Get No) Pricing Traction
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