Most sellers are like pedestrians in parking lots. If you are a pedestrian in a parking lot, you probably drove your car there, which is always fun to watch because most of the pedestrians walk like they have never seen a car, let alone just parked one. Sellers act they have never bought a house before, which is always strange, since they want to sell the one they obviously bought. Heads up sellers, know that buyers have most of the same information you have regarding price and the immediate market for homes and mortgage loans. The only thing the buyer does not have is an understanding of your level of motivation.
Consider that most buyers are in the same position as most sellers. If they want to buy a house today, they will pay a market level price for that home, UNLESS:
1. The seller is desperate and will take less than market value because of external conditions.
2. The buyer is willing to wait for a change in events. Prices in the desired market area may go down, allowing the buyer to pay less money. Interest rates may go down, allowing the buyer to buy more house for the same money, or obtain a lesser payment for the same house.
For the buyer in no hurry, it may pay to wait. But maybe not. Consider that there is a corollary between interest rates and homes prices. Lower rates almost always mean home prices are going up. On the other hand, higher loan rates do not necessarily mean prices are not going up.
To be a successful seller you mustprice your home at a competitive price. That does not mean lower than the market will support, it means competitive. And, you must make your home more desirable to a given buyer than other homes similar to yours.
The price and condition of a home is controlled by you, the homeowner. Marketing, advice, negotiating, and processing the sale are the job of your REALTOR. And never forget that an appraisor will value your home for loan purposes. Even buyers that pay cash will generally obtain an appriasal, and appraisors will be brutally honest in determining value.
-thats 30-
Written by Larry D. McGee, Denver Realtor - Visit Website
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Susie 10.01.07 at 12:08 pm
This is a great thing for consumers to realize. I think a lot of buyers believe that they will get a “great deal” if they buy now. I believe that homes in good locations in good condition are moving quite well at market value.