You can see people or signs marketing their home stating they are below market value or below appraised value and think that will make the home sell. They will also disclose that if the home is sold using a realtor the price of the home will be increased. This increased price will cover the costs of professional commissions. As a seller this can backfire and would encourage you to market your home at the best value that would include professional fees, just like when you go to the doctor.
Market value is determined by what a buyer will pay for something and what is the best price a seller can get for what they are selling. This is the exact same concept that is used with the stock market. At this time we are in a buyers market and buyers are determining much of the prices. This is also cyclical as it will swing back to a sellers market in the future... and again back to a buyers market over time.
Many real estate professionals will not take on the responsibility of listing a home if they believe it is above market value or over priced. There are some agents that will take on a listing based on what the homeowner dictates regardless of their knowledge of the area. In these cases this increases the inventory of homes in the area as well as the amount of time a home will remain for sale. Homes will sell if priced right and marketed correctly.
A professional realtor can help provide guidance as to a price range that your home may sell. And when buying they can provide assistance with what the homes in the area of your search or being offered at, amenities and what has sold.
Know before you buy or sell... and you will be able to get the best value for your home on either side of the closing table.
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Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County
A lot of these sellers are basing the price on old appraisals or wishful thinking. It is up to us to set them straight.
Oct 15, 2007 03:49 AM
Fran Rokicki Realty, LLC - Bolton, CT
Broker-Mentor,CRS
You may suggest to a Seller that they order and pay for their own appraisal. Remind them, that it must be a market appraisal, and that three are usually done, then averaged. That sends a strong message to them about the market. Appraisers get paid when they do the report, not when the home closes;)
It's a Good Life!
Fran Rokicki, Clubnet~Mentor
Oct 15, 2007 03:53 AM
BHGRE - Metro Brokers - Blue Ridge, GA
Blue Ridge Mountains
I can honestly say that this is one Realtor who will think twice before I ever take on another house that is overpriced. I've even been told in some real estate classes that you should take an overpriced listing. I beg to differ. This is not a win win for the seller nor the Realtor in my opinion. If I feel I can't price a home based on factual data and have to inflate the price, then I do not want the listing. I've learned the hard way and listing a home that's overpriced, especially in this market is not for me. I would much rather have a happy and satisfied seller singing my praises after his home sells than trying to capture a lead or two by just having my sign posted in someone's yard.
Nov 14, 2007 12:19 PM
Carlos R. Arvizu Sr. with Prudential California Realy - Downey, CA
(R.V. Zoo)
Headlines in the Long Beach Press Telegram using scare tactics to grab Headlines?
Today, November 14, 2007, The Press Telegram, a widely read Local Newspaper in my opinion, is guilty of using scare tactics to grab headlines for the sake of selling advertising..
If any Realtor did that, we would be guilty of Stearing, Block Busting. We could lose our Real Estate license and perhaps worst.... I think the Newsmedia has a Responsibility to report the news, but it also has a responsibility to acurately separate the National Headlines, especially if it's going to affect a fragile industry. Which affects more than the real estate community, it affects many walks of life.
As you read, further into the story, according to NAR, we should see some headway in 2008, which is around the corner. With FHA coming to the forefront again, helping many low to moderate income home buyers.
It's very discouraging to many homebuyers and sellers to see the headlines in large bold print, HOME PRICES DROPPING. Consumer Confidence is shaken, just a little bit more, which in comparison, is like a CANCER, that erodes healthy cells and spreads it's decease so wide spead, until it kills those who are affected.
Go ahead, kill the Real Estate Industry, until you kill your own media profession, no body will be able to buy a newspaper.......What a great Idea, boycott any advertiser, who advertises that neagtive crap.
Is there any Attorney interested in filing a Class Action Suit against the news media? If a Class Action Suit was initiated against the News Media, to stop comparing using scare tactics to grab headlines to sell advertising, which in reality, is their primary business, Advertising. Real Estate is Local, Not National, not even the Entire State. It's the market your in!...................I would think, that 1 million real estate professionals would likely agree with me, that the News needs to report responsibly.
Carlos Arvizu Sr pronounced R.V. Zoo
562-755-3856
Nov 14, 2007 05:33 PM
Rate A Home - Saugatuck, MI
You are right with your comment on pricing a home without commission built in. This usually back fires when the FSBO has to move the home into the MLS market. Anyone who viewed the home as a FSBO will automatically offer the previous asking price or below, and the seller will still be out.
Nov 23, 2007 02:09 AM
Comments(5)