I had a client ask how high over the top of their price range should they be looking when searching for a home. If their range tops out in the $700,000s is it worth it to look into the mid-$800,000s?
My opinion is this: If you don’t want to go over $800 then looking up to $850 might be frustrating … Here in Basking Ridge most properties close between 94% and 96% of list price at time of sale. Many properties are not priced right and will sell for less than that – but not necessarily before the seller adjusts the price. As much as we want it to be, it is not a science… by knowing the inventory and using my network, I can help you determine a good offer that takes motivation and market value into account.
The other point that many people – buyers and sellers alike – lost sight of is that an offer should be relative to market value NOT list price. This is a tough one and sometimes you have to test the market (as a seller) or test the seller (as a buyer).
It’s more art than science…