Bad Math
I have stumbled upon a few sellers who've grossly inaccurate views
regarding the values of neponsit realty.
They think that simply because they
paid “x” and set “y” in to the property, the property is now worth
“x+y”. This idea works in algebra, although not within our housing market.
Inaccurate views by sellers happen most often at the beginning of the sale process. The
sellers don’t yet realize the tremendous amount of setup work done by the broker on other
properties which helped find this buyer.
The value of a house in today’s market is determined by comparable sales inside a recent
time frame (3-6 months). Even if the seller finds an uninformed buyer who would pay too
much, there is an excellent chance that the deal will not close. Why? Any buyer who needs
a mortgage would discover that the bank appraisal would be lacking to warrant the size of the
mortgage needed to complete the offer.
Some brokers are too ready to take these pie-in-the-sky listings, since they're hungry
for brand new inventory (shows market share - even if too costly). If you would like an accurate,
free market analysis then call me.
Call me...love, Robin
When a deal is made on the new listing the
seller thinks “it’s easy”. He thinks he will be able to perform better because
the process just started and often he can do better. However, in
a large number of situations this isn't the case. Real estate broker
usually brings his best, most qualified, most experienced buyers to the new listing immediately.
The broker performs this to be able to play the role of one step ahead of the competition and/or facilitate
an offer together with his buyer before his buyer finds another property (or changes his plans).
The vendor is reaping the advantages of much prior work and advertisement of other properties
by the broker.
Consequently, the seller who dismisses an initial good offer purely since it was presented
too soon might be creating a big mistake. Our real estate market continues to be a buyers market.
Nearly every listing price should have at least a little bit of negotiating room inside it. Therefore,
an offer within hailing distance of the listing price ought to be seriously considered. Obviously,
as mentioned above, better offers can materialize as time goes by. The problem can be a
conundrum.