Here’s the scoop.
Listen, if you wish to sell your house, your trusted real estate agent will undoubtedly take your asking price into consideration before listing. However, if they were worth their salt, they would ALSO have done some homework beforehand. In other words, they will have looked into the most recent sales on your street and/or neighborhood comparing that with similar houses to find a baseline asking price. They do this so you can ask a fair price as dictated by the market, not too low, but also NOT too high!!
Not too high is the point of this post gang.
So let’s say you’re neighborhood has given you a baseline of about $300,000 for your house. Since every house is different, every price point will of course vary however, what happens if one decides their house is worth substantially more than the baseline? What if the homeowner in this case decides to list for nothing under $700,000? Their reasoning of course is because of the additions that have been added (hot tub, pool, extensive basement renovation, you get the idea) and they now feel that anyone would be LUCKY to get THIS house.
Follow what I’m saying?
What do you think will happen? Simply put, the people who would love the house can’t afford the seller’s asking price and they move on to another one. However, what of the people who could afford the asking price, well, they won’t even look at the house twice because they can afford other houses in that price range which offer better amenities for their hard earned cash.
It even seems foolish that this has to be explained to people, but anyone who disagrees with that post needs this lesson in pricing101 apparently.
The reality; the house will sit on the market until one of two things happen. The seller reduces their asinine asking price, or they take their house off the market, simple as. It seems that most may have more common sense involving real estate that people do in the sexual market place, it’s sad but true nonetheless. So many speak about what they ‘deserve’ out of some such situation, but they do so with little to no consideration of the investment and return of actions. There is a reason why the richest, most successful men tend to have the most beautiful wives, AND, that the most attractive women tend to have the most successful and solvent husbands.
Is it a cruel and harsh reality to face for both men and women? You bet, and I’ll be the first to agree to it. Yet, I have to ask anyone reading this post what’s worse in the long run? Being realistic about your market value and working within those boundaries, or following the ‘feel good’ guru’s in the world who state that ‘you should get EVERYTHING you wish’ and sit on the market with a house that no one can either afford or want to buy as valuable time slips away?
The main reason why I state this is because I’ve two female friends who have vastly overestimated their own value in this manner and as a result have scared away some decent buyers to their detriment. Friend number one who is desperate to have children is currently seeing an unemployed (but still arrogant) man who doesn’t wish to have any and has undergone the snippety snip on top of everything else. Friend number two actually had a great guy at one point in time, but as I had figured she would, her moxie didn’t seem to endear her to him.
It isn’t just a good marketing strategy to have a good bead on our market value, as it assists others from eating our lunch. It also makes sure that we don’t turn away reasonable and achievable opportunities for pipe dreams which will NEVER occur. In blunt real estate terms, the woman in the FGJ article is a $300,000 3/2 house asking for over $10 million yet is surprised that all she gets are “losers” and “perverts”.
Due to the ugly truth behind the negotiation, the day will come when the offers this woman even used to get stop coming.