Sellers are still, yes still, conditioned to think that their house is really worth the high price. I see it all of the time. Yes, it could be realtor marketing.. but more than likely it's price, especially on homes over $400,000.
However, perceived value is everything in this market. When a "step up" home buyer walks into a home that looks like it should be priced at $450,000and the price is $400,000, the perception is "This is a great deal". The home seller may even sell above the asking price because the price supercedes the value.
Here are 2 examples of how homes are sold based on my own observations ( all things equal):
A homeowner has a home valued at $430,000. The agent advised the homeowner to price it at $439,000. The seller decides to price at $459,000.. ( the seller thinks that they need "room" to "negotiate".) What happens? This seller experiences languish. The house sits on the market for 6 months, then the price is reduced to $439,000. In the meantime, the market declines again. and the home's value is now $419k. The seller waits another 6 months. So now the house in in "Languishworld". The listing expires, now there isn't any equity left and the seller cannot move.
This homeowner has a house valued at $430,000. The agent advised the homeowner to list at $419,000. The homeowner has 30 potential buyers through the home in the first 7 days. That same week, 6 offers come in, and what happens..bidding wars !(yes even in a buyers market).
The home sells for $435,000 in less than 30 days AND the seller gets a great deal on the dream house in Florida!
Of course every situation is different. The above example was based on "all things being equal".
Thank you for reading my blog.
Lori Lincoln is a Realtor in for Keller Williams Realty. For More Home seller tips go to http://www.LincolnTeamRealEstate.com
You can reach Lori at 508-878-0917 email: firstname.lastname@example.org
Serving Taunton, Fall River, Swansea, Somerset, Seekonk, Rehoboth, Raynham, Dighton, Assonet, Freetown, Lakeville and other cities and towns in the Southcoast region of Massachusetts