Even In This Market My Buyers Paid Full Price for Their New Home
YOU READ IT RIGHT!
There is a misconception among buyers in this market that every home available should be bought at 20% below listing price. After all, this is a buyers market. But one way to really lose out on a great buy is to low ball a home that is already priced right.
Some sellers price homes to sell from the get go. And some sellers price homes even lower because they are motivated!
Consider this scenario: "Buyer A" comes along and is looking for a steal. While "Buyer A" makes an offer 20% below asking price, "Buyer B" is having contracts drawn up on the same home because he realized the great value and offered full price. "Buyer A" wasn't educated correctly along the way.
How do you find out if the asking price is appropriate? Have your real estate agent complete a market analysis of the home you want to buy. This is a great way to educate yourself and be able to present a fair offer to be considered by the sellers. It is also a way to get a great price on a home and beat the competition!
When a real estate agent completes a market analysis of a home, they find comparable properties of that home that have recently sold that are located close to the property. This is also how an appraiser will calculate the value of the home you are buying.
Many buyers and even some agents are so against full priced offers that they often miss out on a great buy. Don't let that be you!
(By the way, I am currently working with a client who is paying full price for their new home and is paying 15% below appraised value!)