During the last month, a colleague representing a buyer told me of a home that her client really liked. The problem was that the price was too high based on comparable sales in the area. The house was on the market for 32 days and the listing agent indicated she had not received any offers. An offer was submitted at a price that was closer to comparable sales in the area, but it was rejected.
This same colleague told me of another client who was interested in purchasing a home that was clearly priced below market value. That client put in an offer that was $80k over the asking price and the offer was rejected without a counter offer. There were 14 offers placed for that property.
Another colleague who represents a seller mentioned his listing was
fairly priced, but it did not generate the kinds of offers he’d hoped. The property was ultimately sold and his clients were happy with the price, although they were a bit disappointed that only a few offers were submitted.
These stories confirm to me that the current market no longer allows sellers to assume multiple offers just because there are so many buyers for so few homes. Yes, low inventory is still prevalent and a driving force in value appreciation. However, it no longer seems to be as dominant as it’s been in recent years. Now, it seems value and affordability have replaced the “something is better than nothing” attitude that many buyers seemed to have had.
Whether you’re a buyer or seller, it’s critical that you know the market value of the home that is for sale based on comparable sales in the area.
I am more than happy to provide you a Comparative Market Analysis (CMA) for any property, free of charge. If you’re a seller, it’s important because it helps you set the right price so buyers can notice your property. If you’re a buyer, it’s important because you’ll be able to place offers based on value and not the list price. If you’re not selling, but just curious what your home is worth, that’s ok, too.
Let me help you. It will be my pleasure.