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

By
Real Estate Agent with Serving Greater 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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  1. Amy Bender Webb 08/12/2008 08:25 AM
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Location:
Massachusetts Bristol County Rehoboth
Tags:
buyer seller market home house massachusetts rehoboth

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Ambassador
780,100
Charlie Ragonesi
Homes - Big Canoe, Jasper, North Georgia Pros
AllMountainRealty.com

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

August 12, 2008 07:58 AM
Ambassador
1,042,155
Ellie McIntire
CDPE, Howard County Homes for Sale
Ellicott City Clarksville Howard County Maryland Real Estate

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

August 12, 2008 08:12 AM
Rainer
24,293
Amy Bender Webb
Your Charlottesville Agent
Nest Realty Group

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!

August 12, 2008 08:23 AM
Rainmaker
842,308
Steve Loynd
800-926-5653, White Mountains NH
Alpine Lakes Real Estate Inc.,

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

August 12, 2008 08:30 AM
Rainmaker
298,489
Heather the Realtor Orlando, Lake Mary
First Time Home Buyers, Bank Owned Homes
LemonTree Realty

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.

August 12, 2008 03:17 PM
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Lori Lincoln

Your Local Housing Expert, Keller Williams Taunton
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Additional Information

Greater Taunton Massachusetts Homes For Sale and Real Estate Market Value for Home Sellers and Buyers Education for home sellers and home buyers and homes for sale and Real Estate in Taunton MA, Assonet , Lakeville homes,Rehoboth homes,Seekonk homes, Somerset homes, Dighton homes, Berkley homesFall River homes, Swansea homes, Lakeville homes, Easton homes, Raynham and more. Homes Seller Staging tips, house values, housing market values, Real Estate Market Trends. News for Real Estate Agents and Realtors. FREE Nationwide Home Search- FREE Online Home Value for Bristol County Massachusetts including Assonet MA,Taunton MA, Rehoboth, Freetown, Berkley, and more MLS Search Free and surrounding communities. FREE Short Sale,Foreclosures, Bank owned homes, House Auctions, Mortgage calculator too.