Overpriced homes, lowball offers – both a poor idea

Whether you’re looking for a home to buy here in Tamaqua or have a home to sell, you’re going to deal with price, and you may get a lot of advice.

 

Markets across the country are in flux right now – many say they’re normalizing after the radical ups and downs of the past dozen years. But still, some will tell you we’re in a seller’s market so you should list over-market. Others will insist that it’s a buyer’s market, so you should offer low and get a bargain.

 

Both types of advice are wrong, no matter what kind of market we’re in.

 

The best advice is to listen to your agent.

 

If you’re selling, a good agent will prepare a market analysis for you, based on the recent selling prices of homes as much like your house as possible. You can look on line and find homes you think are similar to yours, but your agent has more information and can make better comparisons.

 

Note that on-line estimates are often 30% or more above or below true market value. That's because computer programs don't know the details that make a house worth more or less. Therefore, they can't make comparisons based on homes that are truly comparable to yours.

 

Listing within a couple of percentage points of true market value will ensure the most showings – and the most likelihood of selling in a reasonable period of time.

 

Listing far above market value will almost guarantee that your house will sit on the market, possibly until the listing expires. You might get a few early showings, but buyer agents don’t want to waste their time or their clients' time. Therefore, they’ll discourage future showings.

 

If you’re buying, your agent can tell you if a house is at market value or not. If it’s badly overpriced, then a low offer might result in a purchase, depending upon how realistic the seller and their agent are. If it’s at market value and you really want the house, then the safest plan of action is to offer at or near the list price.

 

Some will tell you to go low because you can always go up if the seller counters. In some cases that will work. In others your offer will simply be rejected. If you’ve gone too low you may antagonize the seller to an extent that they won’t entertain your offer even if you come back higher than the list price.

 

Fifty years ago buyers, sellers, and agents didn’t have access to the asking and selling prices of homes across their marketplace. Today we do, and that knowledge makes a difference.

 

Be careful. Listen to your agent and be realistic when listing or making an offer.

 

If you plan to buy or sell here in Tamaqua, get in touch. I study the market constantly and can help you set a selling price or make an offer at today’s true market value.