It's All About Price

Wow! It happened again today. We received 3 offers, all over asking on a home that we had listed. What’s the secret? It was priced where the data told us it should be priced and the seller listened to the facts. Of course it would be easy if that was the end of the story but its not.

Did you know we're really in the middle of two different markets? One that you hear about in the news - slow, declining, too many houses on the market, buyers waiting to decide, etc. The other (that you don't hear about) where homes sell in one week with multiple offers, and over listing price. You see, there are actually quite a few buyers out there in the market. They are just waiting for a great deal. Then as soon as one comes they all pounce on it! Everyone wants a deal! Buyer agents keep a list of Tier 1 properties that will sell this week (super fabulous deals), and Tier 2 properties that will sell in the next month. Everything else will be there for a long time so no urgency to see those. The Tier 1 properties are amazing. 10+ showings a day. It's two extremes. Think of it on a converging graph. When great condition meets below market price, you will sell for over asking. The poorer condition, the more below market you need to be. If condition is great, but you go to market value it might sell, but below asking and be ready to wait 6-9 months.

This part is really important! If your home is worth $320,000 and you list it for $325,000 you won't sell. If you list for $320,000, you have 14 days. If no offers in 14 days, be ready to sit a few months and guess what - it's not worth $320,000 by the end of that month. If you list for $305,000, you have 30 days and then same as above. You'll probably get offers for $295,000.If you list for $299,900, pack your bags, enjoy all the offers, sorry for so many showings all day, congratulations on selling for $305,000! Of course if you listed it for $305,000 you wouldn't have gotten it.

It may sound strange but it's supply and demand and it's happening right now every day. Supply something rare (a great condition home for an amazing price) and you will receive a huge demand.