Keeping in vein with the client question I had about offers for more than listed price, I have a first time buyer client that thought the listed price for a home is supposed to reflect market value.
That would be preferred, but not very common. A seller can set whatever price they want for their home. Their agent should provide guidance as to how their home compares to others in the area (comparable market price analysis, or CMA), and possible pricing strategies.
Some sellers set a deliberately low price to attract buyers in the hope of getting multiple offers over asking. This is also a common short sale strategy to attract offers they need to get the bank approval process started.
In the end, market value is whatever buyers are willing to pay for a home; either lower than, equal to, or over the listed price.
Copyright © 2008 Rod Rebello
www.TempeAgentNews.com
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