Just because a house is listed for $1,900,000... that doesn’t mean it will sell for $1,900,000. By setting a list price, Sellers are setting an expectation. That expectation is often unrealistic and does not have to be met. Remember, a house is only worth what a buyer is willing to pay for it.
Shopping Within Your Budget
Buyers will often say they only want to purchase a property under ‘x’ price, let’s say $700,000. So they only search for properties that are priced under $700,000. Meanwhile, their dream home could be listed on the market for $720,000 and they miss it. The truth is, Sellers often list at a higher price than what they actually expect to sell for. Of course, they want to make as much money as possible from the sale, so they list high in the hopes that someone will just come along and pay top dollar.
So How Much Do I Offer?
There is no rule about how much you can or can’t offer. You can literally offer any price for a property. The list price is merely a guideline and hints to what the Seller would ideally like to sell for. If a property has been sitting on the market for a long time, buyers should take note and take advantage of this. After six months of trying to sell their property, the Seller might be willing to take any offer (within reason).
The Bottom Line
Don’t let the list price put you off. Offer what you think the property is worth, or as much as you’re willing to pay for it. If the Seller rejects your offer, move on to the next listing. Or, the Seller might just take you up on your offer. It could be the best offer they’ve had yet. Alternatively, the Seller might start a negotiation, in which case you can decide to take it or leave it. As the Buyer, you make the first move, so own it!
Call me today to put together the offer for your dream home.
Thanks for reading!
By Rachel Edwards