Adjusting Purchase Price Downward - Orange County Real Estate Market

Posted by BanCorp Properties on Friday, March 27th, 2015 at 7:09am.

 

If you are an Orange County, CA homeowner and you are getting ready to list your property for sale it is imperative that you work with a experienced Orange County Realtor that has sound pricing strategies in place for determining the sales price. By setting an artificially high purchase price, the likelihood that the property will linger on the Orange County MLS for a significantly longer time than average raises exponentially – the ‘days on market’ continue to tick. If the property is not a multi-million home, it is under most circumstances fairly easy for the buyer’s agent to ‘comp-out’ the property in determining the fair market value, which will invariably lead to the number set in the offer.

If the home is in the $500k - $1mm range, if one ‘xyz’ company says they can get you significantly more than ‘abc’ company you should be very skeptical. They certainly can start out with an initial higher listing price to secure the listing, but that does nothing to guarantee a higher sales price. All the marketing in the world is very rarely going to get a buyer to over pay for a property. If you have to adjust the selling price down while the house is on the market, other Realtors pick up this, which can also lead to low-ball offers – with the thinking being that the seller is desperate to sell the property. They may or may not pick up on the fact that the property was overpriced from the start.

The bottom line is this: If you are getting ready to list your home and a model match 3 doors away just sold for $600,000, it might not be a wise decision to list your home for $675,000 – not in this market. 

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