Wiggle Wiggle

“It’s a buyer’s market." Everyone knows this. So goes the thoughts of everyone listing their home for sale. “Buyers will low ball me and I have to build wiggle room into my price so I don’t get taken to the cleaners.“ This makes sense at first glance. If I am to arrive at a fair market price I have to give myself some money to give away. However, when you look at the numbers, this is not the case; in fact you may be doing yourself more harm than good.

In most real estate markets homes sell at a price that is within 95 to 97 percent of the list price. Here in Lakewood we are within that range. So if I have an appropriately priced home listed at $100,000, I should expect it to sell for between $95,000 and $97,000. Therefore, if I know my home will sell for $96,000, why would I want to list it at $109,000 or even $115,000? Just so you can give yourself more money to give back in negotiations?  How does this help? You have, in fact, succeeded in overpricing your home by ten to fifteen percent.

Buyers are very savvy and know the market very well. They know values better than most people selling because they are more involved in the market than most sellers. When they see a home that has a fair price they will offer a good price and not go on looking at other homes. If they perceive your home as being overpriced they don’t write an offer in expectation that the seller has built in wiggle room and is willing to negotiate, they just don’t write an offer.

Eric Lowrey

I am a Realtor working with Prudential Lucien. My wife Cindy and I have lived in Lakewood since 2004. A former hige end Pastry Chef and College Teacher, I have lived many lives. Both Cindy and I are involved with Lakewood Alive, Live Well Lakewood and The Lakewood Historical Society. We live on Waterbury road with two cats and you can usually find us sitting on our front poarch come evening.

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Volume 7, Issue 13, Posted 8:02 AM, 06.29.2011