Did You List Too Low
2010/04/20 - Originally published in the Vernon Morning Star
This can happen, but it's extremely rare. Perhaps you have put your property on the market and in less than a week you get an offer. Maybe that offer is at or close to your asking price. Your first thought may well be that you have not asked enough for your property.
When your Realtor© does their market analysis they look through the most recent sales on the properties sold that are the most comparable to yours. When your Realtor© looks at the sold prices on three or more properties they can establish a value range pretty quickly. The other information your Realtor© gathers is what price homes currently on the market are asking. Your Realtor© in most cases will supply you with a printout of both the sold and competing listings, which you should review with them. They can go over individual points and features of the various properties with you and help you see the pattern in the prices shown.
In a competitive market such as this one, the best way to catch the attention of buyers, is to list at a price just a little less than your most obvious competitors. The buyers who have been shopping immediately see true value when they view your new listing and voila! You get to sell in a short period of time. So it's really competitive pricing that gets a sale quickly as opposed to actually under-selling.
In some markets we have even seen listing a little lower than your worst competition create a situation where multiple buyers write offers. The Seller is nearly always the winner in this situation. They often end up with a sale price that is higher than their asking price.
Jane Field works with RE/MAX Vernon. Jane has over 30 years experience in the Real Estate business. To suggest topics for future articles or to ask Jane questions, email or call 503-3755.
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