In an analysis of recent sales and current market offerings in Lake Norman, we found some very interesting information and an even more interesting listing. As agents, it is our job to work for you as a buyer or seller, as directed, and hold a fiduciary duty to you. You get to choose what path to take.
In this study, we found a home that was listed WAY BELOW market value and knowing the current market we are in, we were STUNNED.
As a seller, why would you throw money away?
We cannot know the seller’s motivation, but knowing recent sales, if priced at or slightly above market, this particular home would have sold very quickly. In real estate, you have to know the numbers! So, why list at $70,000-85,000 BELOW market value?
– Was it the recommendation of the agent?
– Do they have a giving heart and concerned with housing affordability in the area?
– Was this seller informed of the market and the stats and chose not to use it?
Of course, this home went under contract in a day. This particular home was not distressed, no cosmetic issues, it had been updated, is in a very desirable area, and is priced below $300,000.
As a potential seller, what would make you decide to list a home that far under market value?
We recently wrote an article on pricing strategies and provide some thoughts. We would love to know what you think. There are different approaches and strategies…the great thing about it all is that YOU get to choose.
Update…
Of course, we watched this one to see the result. Did the seller get the bidding war they may have hoped for? Did the value increase to actual market level or did it fall short? Are you curious?
This particular home in Davidson never reached what we considered actual “market value” on this property, based on recent sales within 0.25 miles of this home (there were plenty). However, it did get about $30,000 over asking price. We still stand by our original assessment and would love to understand the reasoning and purpose of the seller’s choices in that transaction. Did they feel this was a win because they got so much over asking or did they even know that they the market could have offered them another $30,000+ . We’ll never know. It was their decision, after all. We see things happen all the time that don’t quite add up. We just hope that the agent presented an accurate market value.
