A GREAT CONTROVERSY is brewing. Did that house really sell $30,000 over it's value? Did the buyer pay too much? Or did the seller get too little? Lets talk about what I am seeing in the Manchester NH Real Estate Market.
If you browse local Facebook groups, there is no shortage of agents telling you, how you as a buyer should be prepared to offer over $20,000, $30,000 or even $50,000 more than asking price. There are countless buyers losing out on home after home. However is what you read really what is going on? The answer is NO.
The hard truth is you may be seeing an illusion. Lets say you take a home worth $400,000 and list it at $350,000. It goes under contract for $400,000. Did it really sell for $50,000 over market value? NO, it did not. It sold for 50k over asking, but asking was too low to start to entice more offers. 20, 30 or even 40 buyers who made offers never had a chance. They wasted time and think of the emotional toll....
Lets take a neighbor of that sale, same style, same age, same size and same condition who sees the 400k sale. He also sees buyers offered 50k over asking on the agents FB post. He thinks he can get 450k. Can he? The answer is no. His home is only worth $400,000. Let say he throws the agent out of his house when told he can not get 450k. They said he should ask $350,000 as they did with the neighbors home. Lets also say the 2nd agent that comes in and gives him the truth that his home is worth $400,000. That the proof of that is in the previous sales that show what his house is worth. That this 2nd agent shows him the neighbors house was under priced to attract more buyers.
*The would be seller replies that his neighbor said they had over 100 people at their open houses. He does not want 100 people in his house.
*He also says the neighbor said the agent waited 3 weeks to take offers until the 2 open houses. He does not want to wait 3 weeks.
*He said the neighbor told him they got over 40 offers. But the neighbor, who is numbers guy, said only 5 of the 40 plus offers were near or at the $400,000.
The would be seller looked at the agent and said it does not seem the home next door actually sold for $50,000 over value. Well, that agent was me and I looked the seller in the eye and said no, that is why i would list your home at $400,000 and get you $400,000 or maybe a little above. There would be no 100 people coming through your home as we would only show to qualified buyers looking in the range of 400k. A simple plan to the list the house at market value. Give the seller a week to get the home ready. Start showings on a Friday to qualified buyers. Look at all offers on Friday night and then voila, the highest offer is $420,000. The buyer waives inspections, attaches a pre approval from a local bank with 25% down and the home is under contract. 1 day. Minimum disruption to the seller and yes, $20,000 over the real value of the home.
BEFORE ANY BUYERS MAKES AN OFFER ON A HOME.... YOU NEED TO LOOK AT WHAT THE HOME IS WORTH, NOT WHAT THE ASKING PRICE IS.
With Sellers setting asking prices under market value, you have no chance to purchase it at that asking price. With some sellers listing way over market value. Some buyers could really over pay what that home is worth.
WHAT SHOULD A BUYER DO? It starts with the buyer hiring a GREAT Buyer agent. (Not just any buyer agent) One who is "well experienced" who will stand by the through each step of the buying process. One who will look to see what that home is worth and what price you should really offer. NEVER base an offer on a percentage over what the seller is asking. Know what the home is worth. NO, you do not have to offer $50,000 over market value, but you DO need to know what the market value of the home is to know what to offer.
THE MORAL OF THE STORY is that in the end, the most important thing in Real Estate for me is provide GREAT SERVICE. I want to stand out from the crowd. My philosophy is simple. To provide more personal and professional service to guide my clients through each step of the selling and buying process.
All agents are not created equal and every consumer should take the time to hire the BEST not just the biggest agent. Let me show you there is a difference. Please Support locally owned and operated business.
Locally owned and operated since 1985.
To CONTACT Scott Godzyk please call 603.661.2121 or EMAIL: Sctprop@aol.com .
About the Author: Scott Godzyk is the Owner/Broker of the Godzyk Real Estate Services in Manchester NH. Proud to be locally owned and operated with 35 years of experience, Scott is a leading Agent for Listing and Selling Homes in this area.We are Full Time Agents ready to serve all of your Real Estate needs. Servicing Hillsborough, Rockingham, Merrimack and Belknap counties.
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