Real Estate Value
One of the challenges of creating a meeting of the minds regarding real estate transactions is that each party often has a different perception of the value of any particular property. Generally, buyers under-value a potential purchase, continually seeking a lower than the realistic offering price. Sellers behave quite to the contrary, often overvaluing what they own. While real estate agents should be the level-headed guides, unfortunately, the competition and search for commissions skew their behaviors throughout this process. However, in the end, in most cases, it’s the reality of the marketplace which determines the selling price. It’s important to recognize and realize there’s a vast difference between the listing selling price and only the latter, which translates to money in one’s pockets. With that in mind, this article will attempt to briefly consider, examine, review, and discuss each and the need to create an attitude adjustment to obtain a desirable deal and transaction.
1. Buyer: In many cases, buyers believe they must offer, below the offering price, a piece of property and house. Perhaps, this is because, traditionally, some agents addressed this by pricing a home artificially high at the start. However, instead of doing so, a buyer should seek a qualified buyer’s agent who will do a Competitive Market Analysis to indicate a price range for the particular property.
2. Seller: Since sellers generally have an artificially – high estimate of the value of their home, based on observing listing prices (without checking or selling prices) and becoming overly emotional and attached to their home, they often think their house should be priced, higher than it should. This is generally not beneficial because, in many instances, homes priced right from the start receive the best offers.
3. Agent: All real estate agents are not created equal. Since, for most people, the value of their house represents their single – most significant financial asset, wouldn’t it make sense to carefully interview and thoroughly examine/ discuss/ consider which agent might be best for them and their circumstances? Whether buying or selling, hiring the right person is essential. The agent should provide a sense of reality and tell you what you need to know, not just to hear.
4. Market: The market will be the reality. Remember, in most cases, the best offer will come, within a few weeks, after the house is listed, so it’s wise to price it right to optimize the possibilities.
Whether buying or selling, doesn’t it make sense to use some common sense and act accordingly? Are you prepared to do so?