Photo courtesy of Kirsten Jobb
Need To Expose The Home
First, I need to define some terms, and that would be an “efficient” market versus an “inefficient” market. An efficient market is one where all information is readily apparent to all parties and the price of the item in question is easy to determine. An inefficient market is the opposite. So if you had a shopping mall that had a Target, Wal-Mart, Office Depot and Staples side by side, the price of a 12 pack of Ticonderoga #2 pencils would be pretty easy to figure out.
Our real estate market is a horribly inefficient market. Not only are no two houses exactly alike but not all information is available to everyone. We can look at the MLS data for guidance, but the Solds are by definition “old news,” the Actives haven’t sold yet, and we don’t know what price all the Pending homes are pending at, or if they’ll even close. There are many, many factors at play and no one, I repeat NO ONE, can tell you exactly what a home will sell for, not to even within a few thousand dollars.
So here is where I get all righteous and climb up on my soap box. Let me first put on my helmet and shield to get ready for the arrows...OK, I’m ready. Based on the above, it is my contention that the best way to really find out what is the most that a home will sell for is to expose it to the open market, allow all potential buyers in to see it, then wait at least a few days before the seller responds to any offers to find out what the market will bear. Otherwise, if you take an offer WITHOUT exposing it to the market, or if you take the first offer through the door, you’ll never know if you are leaving money on the table if you had only waited a few days for another offer. This is why I’m not a fan of “pocket listings” where only I or my office knows about the home being for sale. Sure, the seller may save a little on commission, but I think the odds are high that you could “net” more money on the open market. If you are doing a short sale, this actually DOES apply to you because I believe you have a legal duty to only accept and submit a market value offer on your home.
If you have questions on this or any other real estate topic, call me at (925) 240-MOVE (6683). To search theMLSfor free and view virtual tours of homes for sale, go to: www.SharpHomesOnline.com. Sharp Realty
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Photo courtesy of Jonathan Dorr
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