Here in Pittsburg, as in every other market across the country, there are always a few homes priced beyond their market value.
Sometimes it’s the agent’s fault. It is unethical, but some agents will “buy the listing” by promising the seller a high price. Sellers “should” realize that it’s the market, not the agent, that causes a house to sell at a given price. But they want to believe the agent, so they do.
Other times it’s the seller’s fault.
* Perhaps they think their home is worth more than other homes that have sold recently.
* Perhaps they’ve been getting pricing advice from a friend or relative, and want to believe it.
* Perhaps they’re just fishing and won’t sell the house at all unless they put a good profit in their pockets.
* Perhaps they’re just throwing a number out there and hoping someone will love the house enough to pay the price.
Of course, they’re forgetting that in most cases, the buyer will need a mortgage. That means the bank will order an appraisal because they’re not willing to loan over market value. They’ve been there and done that. Remember?
And sometimes – that seller will list for a high price but be willing to accept market value should an offer come in.
That’s a poor idea because many buyers simply pass by an overpriced house without stopping to look. They assume – rightly or wrongly – that the seller won’t negotiate.
What that means to you as a buyer is this: Perhaps you shouldn’t be so hasty. Perhaps that house that looks perfect from the photos is owned by a seller who really will negotiate down to market value.
When I represent buyers who are interested in an overpriced house, I take the time to prepare a detailed market analysis. I submit that with the offer, so the seller will not be insulted, but will know that our offer is at market value.
If the house has been for sale for an extended period of time, those sellers may be ready to face the reality of the market, and my buyer’s offer will be accepted.
If you’re thinking of buying or selling a home in Pittsburg, call me. I’ll be happy to prepare a detailed market analysis for the home you’re selling – or the home you wish to buy.