One of the challenges of creating a meeting of minds when it comes to real estate transactions etc. is that each party often has a different perception of the value of any particular property. Buyers often underestimate a potential purchase, often seeking a lower-than-realistic offer price. Sellers behave quite the opposite, often overvaluing what they have! While real estate agents must be sensible, guide you through this process, unfortunately, competition and the pursuit of commissions skew their behavior. However, in the end, in most cases, it is the reality of the market, which determines the selling price. It is important to recognize and realize that there is a big difference between the quote and the sale price and, only the latter, translates into money, in the pockets. With that in mind, this article will attempt to briefly consider, examine, review, and discuss each of these and the need to create a attitude adjustmentto obtain a desirable deal, and, transaction.
1. Buyer: In many cases, buyers believe they should offer a property and/or home below the asking price. Perhaps this is because, traditionally, some agents have approached this by pricing a home artificially high at the outset. Instead of doing so, however, a buyer should seek out a qualified buyers’ agent, who will make a competitive market analysis, to indicate, a price range, for the particular property.
2. Seller: Since sellers often have an artificially high estimate of their home’s value, based on looking at listing prices (without verifying sales prices), and become overly emotional and/or attached to their home, often, they think their home should be priced higher than it should. This is usually not beneficial because, in the vast number of cases, houses that are priced right, right from the start, get the best deals!
3. Agent: Not all real estate agents are the same! Since, for most people, home equity represents their single largest financial asset, wouldn’t it make sense to interview carefully and thoroughly examine/discuss/consider which agent might be best for them and their circumstances! Whether buying or selling, it’s important to hire the right person! The agent should give you a sense of reality and tell you: What you need to know, no, you just want to hear (TM).
4. Market: The market will be reality! Remember, in most cases, the best offer will come within a few weeks after the house is listed, so it’s wise to price it right to optimize your chances.
Whether buying or selling, doesn’t it make sense to use some common sense and act accordingly? Are you prepared to do it?