How Seller's Price Their Homes in Katy, Richmond and Sugar Land, Tx
"How much under the listing price should we offer?"
This is an excellent question. The answer is difficult.
The main reason we emphasize the education phase of looking at homes is because that is the best way for you to know value. When you review and study 40-60 (or more!) listings, then drive by 10-20 and look at 5-10, you will recognize the good ones You'll also recognize the "dogs."
Sellers price their homes differently. Some are reasonable, some are not.
Ridiculously Overpriced Homes!
Some people find the highest price that a property is listed for, then add a little to that for negotiation. There is a tendency by some real estate agents to give the seller a high "value" in an effort to obtain the listing. Some sellers take the price they paid, add their interest, add any improvements, don't consider wear and tear, don't consider market changes.
These sellers may need a "dose of reality" for a few months before they begin to realize that their home is way overpriced as compared to others in the area. If you like a home like this you will likely have to wait several months before the seller will face reality and sell at a fair price. It is a rarilty that they get their price, there is just too much competition.
Homes that are A Little Overpriced
These sellers know the real price but feel the home is worth every peeny of their asking price. Also there are those who want to leave "negotiating room". Most homes are priced in this range.
Homes Priced At Fair Market Value
These sellers have carefully and realistically studied other homes for sale. They have priced their homes very competitively. These homes usually sell within a few weeks in an active market.
Homes Priced Below Fair Market Value
These homes are priced below value. Perhaps the seller wants a fast sale. Perhaps the real estate agent recommended too low of a price. These homes usually sell within a few days, at or above the listed price. There are usually competing offers.
Even by carefully studying homes for sale, it's difficult to establish Fair Market Value. If you're obtaining a new home loan, you'll be protected by the an independent appraisal required by your lender. Home lenders want to make sure that you don't over-pay for a home. If the home does not meet value in the eyes of the bank appraiser, you'll be informed. At that time, we can re-negotiate the sale price or void the agreement and refund your earnest money deposit.
Our job is to ensure that you have the tools and information you need to make an informed decision. We'll help you prepare the offer. Then we'll present it to the seller on your behalf and try our best to get it accepted at your price and terms!
Fred Miller, Re/Max Grand, FredMiller9@gmail.com , www.RichmondKatyHomes.com
281/924-2531 Information About Brokerage Services, Consumer Information
281/924-2531 Information About Brokerage Services, Consumer Information
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