As a home buyer, here are four pricing strategies homeowners use when listing their homes on MLS in London, Ontario. How would you negotiate if you were a homebuyer, knowing which?
What price?
Overpriced:
Every seller wants to maximize the amount they receive. They may have an inflated home value because they got opinions from uninformed advisors and friends, have an over-financed house, or have renovated their home to a standard inconsistent with.
Somewhat Overpriced:
35% of homes on the market are overpriced and sit longer than they should. There are two main reasons for this:
The seller and their Realtor are not in tune with the current market,
Or the seller has left room for negotiating.
Priced Correctly at Market Value:
Some sellers understand that real estate is part of the supply-and-demand system. They have priced their homes realistically based on a thorough analysis of comparable properties on the market prepared by a competent, knowledgeable Realtor. These competitively priced homes sell quickly and are very close to the asking price.
Priced Below the Fair Market Value:
Some sellers are motivated by a quick sale. These homes could attract multiple offers and sell fast, at or above the asking price!
As a buyer, do you know which strategy is in place?
What if you guessed wrong?
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