Home Selling > Any Room for Real Estate Negotiation

Home > Home Selling > Any Room for Negotiation?

Published August 24 2010 7:34 am

Home pricing is a very subjective matter. More often than not, home sellers are pricing their property with room for negotiation. What they didn't realize is that the more they do that, the more they are pricing themselves out of the sale they want. We are not discussing over-pricing although to some, it may seem very similar.

This topic is best illustrated with numbers as an example:

Assuming that the FAIR MARKET VALUE for your home is approximately $300,000.

In most cases, many homeowners will price their property above $300,000 when placing their home on the market. How much above the fair market value is sufficient though?

In order to make an educated guess, it is important to study the Supply & Demand of the market. A good real estate agent can provide you that information. In addition to that, a home seller should understand the showing activities (as it relates to Supply & Demand). See the chart below:

The showing activity usually peak around the 3rd through 4th week after the home first come on the market. This also concur with the anticipated Supply & Demand. Showing activities usually drops off after the 4th week and begins cooling off. After your home has been on the market for a while (over 90 days), the showing activities become very sporadic.

[Note: You have the strongest chance to sell your home during the first 30 days after you list your home.]

If you have padded room for negotiations on your $300,000 property and it was listed at $349,000, you may have priced yourself out of your price range. A good buyer's agent would recognized that the home (under normal conditions) should sell at $300,000 (a fair market value does not change) but because your home is over 180 days on the market, the buyers may decide to pay you $280,000. $20,000 less than market value.

Had you price your property at $305,000, buyers and their agents would recognize the fair market value at the time when the property first come on the market. When a home first come on the market, it is highly likely that the buyer will pay (or close to fair market value) at $300,000 and you get the highest price you could possibly get.

Coming from a Buyer's perspective: Home buyers when placing their first offer usually test the water to see how low a seller would go. More often than not, it does not mean that it is their final and best offer. A serious buyer recognizes the value versus price. A serious buyer will usually end up paying close to fair market value.

Home sellers: Need to re-think your pricing strategy? It is highly important. Too many times, room for negotiation price the seller out of his/her very own sale he/she so desires.

Related Frisco TX Home Selling Articles:

FEATURED LISTINGS


	Meadow Hill Estates Frisco TX Home for Sale 4 bedrooms, 3 baths, approx 3071 sq. ft. $239,900

	3 bedroom + Study home in Hillcrest Estates 3 bedrooms, 2 baths, approx 1925 sq. ft. $179,900

	Panther Creek Estates Home for Sale 3 bedrooms, 2 baths, approx 1894 sq. ft. $178,900

	Hardwood Floor, Granite + More 4 bedrooms, 2 baths, approx 2795 sq. ft. $219,900
» More Listings

QUICK SEARCH

DAILY FIXED MORTGAGE RATES

*Rates subject to change without notice

No Down Payment No Closing Costs Loan available in North Texas

Check out the Affordability-based Zero Down Payment, Zero Closing Cost Loan Program

FRISCO TX HOMES OF THE WEEK

REAL ESTATE MARKET REPORTS

Check out the latest local real estate market reports of Frisco, Plano, McKinney, Allen, Little Elm & Prosper TX.

Be an INFORMED CONSUMER

Texas Information about Brokerage Services

Differences between Buyer Client & Customer

How Real Estate Agents Get Paid

Join Social Media Conversations In

Active Rain is the Top Real Estate Blogging Platform

About Loreena & 3:16 team REALTY

Loreena Yeo - Realtor(R) in Frisco TX | Broker
M.Sc, B.Sc
Direct (214) 783-2210
Fax (214) 231-9018
Email Me Here

>> Learn about Loreena

>> Learn about 3:16 team REALTY

>> Check out what our clients have to say on Zillow Review

3:16 team REALTY
is a proud Member
of Frisco TX Chamber of Commerce

Loreena Yeo is the broker of record of
3:16 team REALTY to practice real estate in Frisco & surrounding cities (State of Texas). Texas Real Estate Broker License Number #9001154.

CLIENT TESTIMONIALS

Read about what our satisfied clients have to say:

When she arrived for our appointment, we went through the normal preliminary procedures and all was fine. Then she surprised us. She had already done most of the work and only needed to take a few pictures of the inside and determine the price that we would be comfortable asking. She also spent a great deal of time explaining to us how the whole sales process work and what we could expect.

Eric & Tomoko Quere, Plano TX

Ultimately, Loreena introduced us to the house we bought--it was not one we found from our own hours of searching web listings--based on the the comments we had made while we visited these different homes. This is a testimony to her ability to listen well and to work proactively on our behalf.

Jenn & Glen Miller, Denton TX

We were completely impressed with Loreena. She helped us find and buy a home in Frisco. We have very high expectations from a realtor and she surpassed them. Knows her market extremely well, not just the technical market pricing data, but the nuances of all the neighborhoods as well. One of the most responsive and professional persons I've met in my entire business career.

Ruth & Jerry Meek, Frisco TX

I just want to thank you again for your help in selling our house. In this tough economy and market, I really didn't expect to get an offer. But you counseled me so well in pricing the house to sell and yet not letting me accept an offer that was too low. I believe we got the best deal we could have. I was so pleased and surprised with what we walked away with.

Sally & Phillip Barnard, Frisco TX


PRIVACY POLICY	TERMS OF USE	Real Estate Markets

		● Milford MA Real Estate