Toothpaste, pricing your home and perceived value

By
Real Estate Broker/Owner with RICOASTALLIVING.COM

Having been in Real Estate for fifteen years, I think I can almost say I have seen it all!  Today in an attempt to address an overpriced home, I remembered a blog written by Gary Bolen  about selling a tube of toothpaste for $35. I always loved that post because it portrays exactly what sellers are trying to do. You can read it here!   

That post was written years ago but the adage still applies now and I suspect, will always apply.  Your home is only worth what the market will pay for it! And even then, if the buyer is using a mortgage to purchase, it is only worth what the bank will lend.  The bank bases their opinion on the Appraisal.  In my neck of the woods, that appraisal stays with the property for six months, so unless there are a ton of cash offers at hand, the seller needs to bite the bullet and sell at market value.

I find that there is a lot of hype about "hot markets' and sellers come out of the box thinking they can sell for astronomical prices.  I spend every day pouring through the MLS and can see that while there has been some definite movement, it's almost always on homes that have been slightly underpriced.  I have seen many homes go to Highest and best with multiple offers, only to get shot down with an actual appraisal.

As a Broker, I see the look on sellers faces and hear there remarks about the HOT MARKET and do my best to make them see reality.  It does not always work and the home sitting on the market and becoming stagnant is the worst thing you can do as a seller, because it immediately depreciates the perceived value and you will end up selling for even less than you may have if you priced correctly in the first place. 

A Realtor knows daily how the market is going. Last week was hot and this week is not.  Or vice versa. 

But what I really was amazed at today was the amount of blogs about Toothpaste in Active Rain!

 

Posted by

 

 

 

 

 

 

 

 

 

Opinions are of Karen Hurst, Broker/Owner of Stonehurst Realty only. For a free consultation, visit me at Stonehurstrealty.com and find out if this is your time to buy or sell!

Click on  to find me and decide.

If you are looking to sell, we can provide you with the latest stats for the market value of your home.

We specialize in bayside communities in all of Rhode Island

Contact me at Oceanstatehomes@gmail.com

 

 

 

 

 

Want to be a Rainmaker?

Follow me on these sites.

                        

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate Best Practices
Tags:
selling your home
pricing homes
toothpaste

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
2,628,495
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

I have a friend who says that once you take a marketing class you see how prices become arbitrary in that kind of way.

Jun 10, 2018 07:56 AM #1
Rainer
235,753
Kevin A. Guttman-Author, Reverse Mortgage Advisor
NMLS#384936 - Colorado Springs, CO
877-251-9709

This is a great reminder. I think about that graphic of what the assessor thinks your home is worth, what the lender thinks it's worth, what the seller thinks it's worth, and the buyer, etc. This is what is great about real estate, the market determines the price!

Jun 10, 2018 07:59 AM #2
Rainer
444,960
Sham Reddy
H E R Realty, Dayton, OH - Dayton, OH
CRS

You said it like a champion!!!

Your home is only worth what the market will pay for it! And even then, if the buyer is using a mortgage to purchase, it is only worth what the bank will lend.  The bank bases their opinion on the Appraisal.  So unless there are a ton of cash offers at hand, the seller needs to bite the bullet and sell at market value.

Jun 10, 2018 08:24 AM #3
Rainmaker
2,741,547
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Yes it would be great to only has cash buyers but now we have to depend on manks and mrtgage companies.

 

Jun 10, 2018 08:56 AM #4
Rainmaker
3,698,192
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Karen, we are in the very HOT Seller's market, and the homeowners do think they can "shoot for the skies" and hope for the best.

Jun 10, 2018 09:29 AM #5
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Ambassador
376,552

Karen Hurst

Rhode Island Waterfront!
Ask me a question
*
*
*
*
Spam prevention

Additional Information