Myths About Selling and Buying Real Estate
March 26, 2012
Tara-Nicholle Nelson, a writer for the Trulia website, had an interesting posting entitled "5 Real Estate Rules of Thumb: Fact or Fiction? It brought to mind conversations I have recently had with both buyers and sellers.
With sellers, there seems almost always the belief that they must list their property at a price that will allow them some bargaining room. They believe that buyers will always offer less than the listing price. (Just as an aside, any time that a belief has always or never, you can be pretty certain that it will not always or not never be correct. ) The fact is that today's buyers educate themselves via the Internet and are very well informed as to what is a reasonable price to pay for any given property. Most real estate agents have experienced buyers making offers right at a listed price when they have viewed comparable properties in the listed price range. It is amazing that a property that had no offers for the six weeks that it was listed, but two days after the price was significantly reduced, an offer came in at the new listed price. The question one might ask is "Why didn't the buyer just make a low offer?" The answer is "Who knows. They just didn't."
Sellers are not the only ones who hold beliefs that are not accurate. Buyers will tell their agent that they have been told to begin the offering process with an offer ten percent under the list price. Again, this probably is not the way to seriously make an offer. It is better to have the agent give the buyer a list of similar properties and for the buyer to make an offer based on the selling prices of these properties.
Basically, buying and selling real estate can be an emotional process. What a buyer offers and what a seller will accept can be influenced by desire and fear. Desire is how much the seller wishes to move on and the buyer finds that the house meets wants and needs. Fear abounds when the real estate market has suffered through a downturn. Fear right now has a greater effect on buyers than on sellers. Sellers have already lost value. The sellers only fear right now is that the market will improve and they will have sold too soon to take advantage of any increase in value.
Tara-Nicholle Nelson, a writer for the Trulia website, had an interesting posting entitled "5 Real Estate Rules of Thumb: Fact or Fiction? It brought to mind conversations I have recently had with both buyers and sellers.
With sellers, there seems almost always the belief that they must list their property at a price that will allow them some bargaining room. They believe that buyers will always offer less than the listing price. (Just as an aside, any time that a belief has always or never, you can be pretty certain that it will not always or not never be correct. ) The fact is that today's buyers educate themselves via the Internet and are very well informed as to what is a reasonable price to pay for any given property. Most real estate agents have experienced buyers making offers right at a listed price when they have viewed comparable properties in the listed price range. It is amazing that a property that had no offers for the six weeks that it was listed, but two days after the price was significantly reduced, an offer came in at the new listed price. The question one might ask is "Why didn't the buyer just make a low offer?" The answer is "Who knows. They just didn't."
Sellers are not the only ones who hold beliefs that are not accurate. Buyers will tell their agent that they have been told to begin the offering process with an offer ten percent under the list price. Again, this probably is not the way to seriously make an offer. It is better to have the agent give the buyer a list of similar properties and for the buyer to make an offer based on the selling prices of these properties.
Basically, buying and selling real estate can be an emotional process. What a buyer offers and what a seller will accept can be influenced by desire and fear. Desire is how much the seller wishes to move on and the buyer finds that the house meets wants and needs. Fear abounds when the real estate market has suffered through a downturn. Fear right now has a greater effect on buyers than on sellers. Sellers have already lost value. The sellers only fear right now is that the market will improve and they will have sold too soon to take advantage of any increase in value.
posted by shirley harry at 9:02 AM
0 Comments:
Post a Comment
<< Home