When we meet with sellers, we work through a recommended market value and pricing strategy for their house. In response, they frequently ask the question: “Shouldn’t we start high and leave room to negotiate?” While historically leaving “wiggle room” has been customary, in today’s market that strategy has gone out the window.
Today’s buyers are expecting to pay at or above asking price for a home. When agents and their buyers are sizing up a house that is priced above market value, instead of writing a reasonable offer and negotiating on the price, they will actually wait for the house to come down in price before they make an offer. Why? Because they assume that in this seller’s market, a seller won’t budge on price, so why waste time trying to submit an offer that’s not full price?
Because of this mindset, we work hard to help our sellers set a price for their homes at the trigger point in the market: the price that will entice buyers to not only make an offer, but be willing to make an attractive offer that will beat out the competition of other interested buyers. This gives our clients the opportunity of securing not on only the best price the market will bear, but the best terms on the sale of our client’s home. Sometimes the difference of a closing date or financing can be the dealbreaker between one offer versus another.
While this is the current trend in listings in today’s market, please note that some home sellers are still choosing to “test the waters” and do in fact have wiggle room. What does that mean for buyers? Make a reasonable offer rather than wait for the price to come down: if you come to terms with the seller, you just avoided the bidding war that could have been kicked off by a price drop to the aforementioned trigger point, which very well could have escalated to a price above asking!
At the end of the day, whether you are a buyer or a seller, what’s most important is to have a seasoned professional by your side who can help you navigate the choppy waters of today’s market. Steller Group agents are committed to providing you with all the information and insight necessary to make the best decision for your particular situation, within the context of the current real estate environment. Wherever you are in your process—just thinking about it, or ready to pull the trigger—please contact us for a free consultation at 720-593-9355 or [email protected].