Sometimes buyers are put off from making offers because they think the seller is unrealistic and unlikely to negotiate.
I always advise my buyers, if they like a home but feel it is overpriced, to make an offer anyway, because we really do not know what a seller is willing to take. I will include comparable listings to justify our offer. We can only ask, and the worst that can happen is getting “no” for an answer.
WHY do sellers overprice their listings? There could be any number of reasons….but here are the most common ones:
- They are simply clueless as to the fair market value of the property
- They hired an agent who asked them where it should be priced, instead of showing them fair market value pricing
- They want to “add plenty of wiggle room” for negotiation purposes
- They are not really serious about selling and are just testing the waters
- They are trying to avoid a short sale
- They want to break even on their initial investment and subsequent improvements
They could be nuts, they could be clueless, they could be expecting a lot of negotiation. Until sellers are convinced that pricing their home at fair market value will result in a faster sale closer to their asking price, we will have overpriced listings languishing on the market until someone is willing to take a chance and make an offer.
Come on, let’s make the offer. I will find comparable properties to show you where the fair market value should be, and together we’ll see what happens. It never hurts to ask!