For this week’s MAJ 101 Series, Jess demystifies the popular and often frustrating topic of list price versus sales price.
For sellers, choosing the list price for their homes is a strategic decision made for the purpose of obtaining the highest sales price. For buyers, this can feel like a teaser since the actual sales price often far exceeds the list price.
So, how can buyers determine how much to offer on a home they are interested in purchasing?
It is important to separate the list price from the valuation of a home. A list price is merely a marketing tool used to generate the most interest and competition to drive the highest sales price.
The sales price of a home depends on the home’s condition, competition, time of the market, and location. The list price can be the same for similar homes in different neighborhoods, but the sales price will most likely be very different.
This can be very hard on buyers, which is why it is crucial to work with a local experienced agent to help determine valuation. We are in some unusual times in the market, and sometimes even the most experienced agent will not know exactly how much a home will sell for. But, you never know if you don’t try!