But Those Neighbors HAD to Sell...and FAST!
Last week we talked about sellers believing neighbors under contract who claim they are going to sell at full list price. Those are the high, not even sold comps, that sellers want to believe. If that were the only belief propping up an unrealistic number for a list price, that would be fine. It is usually not.
Going over comps in the neighborhood, it isn't unusual to hear, "But those neighbors had to sell fast." When I hear that in a seller's market, I have to inform a seller that is no such thing as under pricing when buyer demand is outpacing the homes available to buy. If you price too low, the market will bid you up.
And in a buyer's market, where seller's linger on the market for months, following the market down as it cools, eventually getting ahead of the drop and finding market value, you want to ask, "So how long are you prepared to be on the market? How many months do you want to contend with making the bed and making sure your house is neat as a pin?"
Isn't the point of listing your home to SELL it?
Every seller wants the most for the home they are selling. Even banks that have repossessed homes in foreclosure. They don't under price. And Short Sale banks aren't accepting less than market value. In fact, those entities who have the most incentive to cut and run, are pricing higher than regular sellers in a seller's market. That should tell an equity seller something.
The comps are the comps. Your neighbor didn't deflate values because they had to sell. They priced where their home was likely to sell and it did. So do you want to list, or do you want to SELL?