Who Determines a Home Sales Price
In this market, there are some sellers that believe because inventory is low and there are plenty of buyers, they can put any price on their home. Regardless of the market, sellers need to understand that real estate agents nor sellers determine the final price a home will sell for. It is the buyers no matter the market.
Buyers are only willing to pay what they perceive is the market value for a home. The San Ramon Valley market has experienced a run up of 10 to 20% over the past couple of years. Because of this some sellers are unrealistic on what a home will sell for. Here is a rule of thumb that research has proven. A home that is on the market 2 weeks and no offers is over priced. And if the only offers received are below list price, it might be in your best interest to either accept or counter the offers, especially if you only receive one offer.
Holding out to get a price in order for you to break even, regardless of what the market stats show is a waste of time and energy for both the seller and the real estate agent. Another strategy that sometimes back fires is pricing the property low with the hopes of getting a much higher price.
The best advice, price the home to sell in whatever the current market is. The market will determine the true value.
Filed under: General RE Tips
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