How To Sell Your Home For Full Market Value by Pricing Under Market Value

By
Real Estate Agent with Serving Freetown/Assonet, Taunton, Rehoboth and more!

Sellers are still, yes still, conditioned to think that their house is really worth the high price. I see it all of the time. Yes, it could be realtor marketing.. but more than likely it's price, especially on homes over $400,000.

However, perceived value is everything in this market. When a "step up" home buyer walks into a home that looks like it should be priced at $450,000and the price is $400,000, the perception is "This is a great deal". The home seller may even sell above the asking price because the price supercedes the value.

Here are 2 examples of how homes are sold based on my own observations ( all things equal):

Seller 1:

A homeowner has a home valued at $430,000.  The agent advised the homeowner to price it at $439,000.  The seller decides to price at $459,000.. ( the seller thinks that they need "room" to "negotiate".) What happens? This seller experiences languish. The house sits on the market for 6 months, then the price is reduced to $439,000. In the meantime, the market declines again. and the home's value is now $419k. The seller waits another 6 months. So now the house in in "Languishworld". The listing expires, now there isn't any equity left and the seller cannot move.

Seller 2:

This homeowner has a house valued at $430,000. The agent advised the homeowner to list at $419,000. The homeowner has 30 potential buyers through the home in the first 7 days. That same week, 6 offers come in, and what happens..bidding wars !(yes even in a buyers market).

The home sells for $435,000 in less than 30 days AND the seller gets a great deal on the dream house in Florida!

 

Of course every situation is different. The above example was based on "all things being equal".


Thank you for reading my blog.

 

Lori Lincoln is a Realtor in for Keller Williams Realty. For More Home seller tips go to http://www.LincolnTeamRealEstate.com

You can reach Lori at 508-878-0917 email: lorilincoln@kw.com

 

Serving Taunton, Fall River, Swansea, Somerset, Seekonk, Rehoboth, Raynham, Dighton, Assonet, Freetown, Lakeville and other cities and towns in the Southcoast region of Massachusetts

 

 

 

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Amy Bender Webb 08/12/2008 08:25 AM
Location:
Massachusetts Bristol County Rehoboth
Tags:
buyer seller market home house massachusetts rehoboth

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Rainer
20,394
Miriam Martir
Keller Williams - Metuchen, NJ

Great advice. Please keep me in mind for your NJ referrals.

Aug 12, 2008 07:57 AM #1
Ambassador
791,534
Charlie Ragonesi
AllMountainRealty.com - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros

Interesting Blog. I guess you assume demand and sometimes that is not a great assumption. But you are 100 percent correct in your strategy. Thanks for sharing

Aug 12, 2008 07:58 AM #2
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Ellie McIntire
Ellicott City Clarksville Howard County Maryland Real Estate - Ellicott City, MD
Luxury service in Howard County & Catonsville

I completely agree. Bidding wars are still happening. Well priced homes do sell.

Aug 12, 2008 08:12 AM #3
Rainer
24,293
Amy Bender Webb
Nest Realty Group - Charlottesville, VA
Your Charlottesville Agent

You are absolutely correct.  I recently spoke with a couple who used this exact approach to sell a home in New Jersey.  They priced is a good 5% plus under the comps which were languishing on the market and within a week they had sold it for above their list price!

Aug 12, 2008 08:23 AM #4
Rainmaker
875,183
Steve Loynd
Alpine Lakes Real Estate Inc., - Lincoln, NH
800-926-5653, White Mountains NH

I do agree that property that is properly priced will get the activity in the early stages of the listing and that may be all that is needed to sell the bidding wars are over- for now though, but the price right and sell sooner rather than later is always in Vogue. Steve

Aug 12, 2008 08:30 AM #5
Rainmaker
298,541
Heather the Realtor Orlando, Lake Mary
LemonTree Realty - Orlando, FL
First Time Home Buyers, Bank Owned Homes

What great advice but do you know how many people I tell this too and they laugh. I have done it on 2 listings back in the fall of the year when things seem to be worse. And their properties sold in less then a month one in 2 weeks.

Aug 12, 2008 03:17 PM #6
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Rainmaker
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Lori Lincoln

Your Local Housing Expert, Keller Williams Taunton
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