This is a very difficult concept for buyers to wrap their head around. They see a home being marketed at a certain price and they assume that’s what the home is worth to the seller.
Wrong!
The home is worth “market value”. What exactly is market value? It’s what a buyer is willing to pay for that type of property at that time. It could be more than the listing price, it could be less.
Here’s the problem, buyers are not used to buying things like that. Oh, we go car shopping and see the sticker price and start negotiating down from that, but who goes to a store or showroom and expects to negotiate up? No one. And yet, this is what it takes to buy nice homes in this kind of market.
How much more? You need good information and data to make that determination. I’m doing market analysis on properties for my buyers so that can make smart decisions on what they should pay for properties.
Don’t get caught thinking that list price equals market value. In many cases, it does not…..