Selling Above Asking Prices – How to Evaluate?

 

 

 

Dear Monica: I see varying information about how much properties are selling relative to their list prices. Some agents tout selling prices far in excess of the starting prices and other selling prices reflect different percentages. How can I best evaluate this information? James W.

 

Dear James: The best way to understand this information is to note what the list price is. Some agents price properties artificially low compared to their market value. Thus when they sell substantially higher than the initial starting price it broadcasts the message that the property and the agent who sold it, must be fantastic to have achieved such a price. One must look at the comparable sales to confirm that this scenario of list price=amazing sales price is a result of agents pricing the property very low to begin with.

It’s true that selling well in this market means pricing your property within an attractive range of where comparable properties have recently sold. Don’t price it too high but price where buyers see good value and room to bid a bit higher if there are multiple offers. But extreme low pricing is not only misleading, it is frustrating to buyers. It is more straight forward to price a property closer to where it is likely to sell.