Comments on: When Should You Reduce Your Price? http://www.valleymarket.com/2008/03/21/when-should-you-reduce-your-price/ Wasilla, Palmer, and Mat-Su Valley Real Estate News Fri, 16 May 2008 04:12:45 +0000 http://wordpress.org/?v=2.3 By: Marty Van Diest http://www.valleymarket.com/2008/03/21/when-should-you-reduce-your-price/#comment-36547 Marty Van Diest Wed, 23 Apr 2008 23:20:32 +0000 http://www.valleymarket.com/2008/03/21/when-should-you-reduce-your-price/#comment-36547 Actually the seller sets the price. The realtor should help them determine a realistic price but the seller actually chooses the sales price. Most people are trying to get the last dollar out of their house, and that means that they will likely make quite a few more mortgage payments before they sell it. And then they will often sell it for less than they could have if the price was more reasonable to start with...it's just human nature I guess. Your strategy works best. However I disagree with your method of looking at their purchase price to see if the current asking price is reasonable. The purchase price has nothing to do with the current market value. Market value is determined by the subject property's price compared to the price of the competition and the price of recent sales of similar houses. It is ultimately determined by the buyer and a seller must always keep in mind that the buyer will be comparing his house to other houses in a similar size and price range. Actually the seller sets the price. The realtor should help them determine a realistic price but the seller actually chooses the sales price.

Most people are trying to get the last dollar out of their house, and that means that they will likely make quite a few more mortgage payments before they sell it. And then they will often sell it for less than they could have if the price was more reasonable to start with…it’s just human nature I guess.

Your strategy works best.

However I disagree with your method of looking at their purchase price to see if the current asking price is reasonable.

The purchase price has nothing to do with the current market value. Market value is determined by the subject property’s price compared to the price of the competition and the price of recent sales of similar houses.

It is ultimately determined by the buyer and a seller must always keep in mind that the buyer will be comparing his house to other houses in a similar size and price range.

]]> By: Jeff http://www.valleymarket.com/2008/03/21/when-should-you-reduce-your-price/#comment-36515 Jeff Wed, 23 Apr 2008 21:37:47 +0000 http://www.valleymarket.com/2008/03/21/when-should-you-reduce-your-price/#comment-36515 But isn't it the realtor who initially sets the expected price for a house? I have seen houses sit out there for months not selling because the price is too high compared to what's selling. I have bought and sold many houses over the years, and i never had a problem because i wasn't out to make all the money in the world out of my sale. I sold them just high enough to break even with a little cushion left over and sold most within 30 days. When i see a house that interests me i look it up on the Borough page and see how much they actually paid for it, if it's way overpriced for what they paid, then i just pass it by because they are only after the most money and probably not eager to negotiate a fair price. But isn’t it the realtor who initially sets the expected price for a house? I have seen houses sit out there for months not selling because the price is too high compared to what’s selling. I have bought and sold many houses over the years, and i never had a problem because i wasn’t out to make all the money in the world out of my sale. I sold them just high enough to break even with a little cushion left over and sold most within 30 days. When i see a house that interests me i look it up on the Borough page and see how much they actually paid for it, if it’s way overpriced for what they paid, then i just pass it by because they are only after the most money and probably not eager to negotiate a fair price.

]]> By: Wasilla Real Estate News » Blog Archive » Wasilla Real Estate Monday Market Memo http://www.valleymarket.com/2008/03/21/when-should-you-reduce-your-price/#comment-36305 Wasilla Real Estate News » Blog Archive » Wasilla Real Estate Monday Market Memo Tue, 22 Apr 2008 18:19:12 +0000 http://www.valleymarket.com/2008/03/21/when-should-you-reduce-your-price/#comment-36305 [...] sheet today.  Some of the motivated sellers haven’t become motivated enough to get their price right yet.  They will, they are going to sell [...] […] sheet today.  Some of the motivated sellers haven’t become motivated enough to get their price right yet.  They will, they are going to sell […]

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