I did a series of posts on questions that I get on a regular basis (or interesting enough that they make an impression by getting asked just once). This isn’t one of those. This is the question that most consumers don’t know to ask… and this is part two.
Shouldn’t we just offer X% of the listing price?
Fill in a number… it doesn’t matter. And the answer is NO. The listing price may or may not be based in reality. But, here is the thing… the sellers have an emotional investment in the listing price… generally. And if the house is over-priced, the chances are that even if they were thinking of “negotiating room” they started to think that their home was worth that price. Of course, there are times when they might be frustrated and may sell for 75%, or whatever…
But the bottom line is that the listing price reflects nothing more than one person’s opinion of value (or a few… same difference). Some homes are great deals at the list price. Others are a fools game at half of the price. But, the crucial difference is that in the case of a fairly priced home, the seller is generally easier to deal with and won’t cry about how they are being taken advantage of at every turn. The “heavily discounted” seller will often put up roadblocks at each opportunity.
Simply put, concentrate on homes that are appropriately priced. Base offers on reality, and stop thinking that real estate is a Wal-Mart clearance sale. The basic fact is that in Gwinnett County, right now… homes are averaging above 95% of listing price. And only the homes that are priced right are selling.
