Monday, March 27, 2017 / by Paul Wolfert
When it comes to the reality of pricing a home in Michigan, it’s natural that buyer’s and seller’s points of view reflect their different roles and objective.
In a way, they’re mirror images of each other.
From the seller’s point of view, pricing their Michigan home starts out from the reality check of the “comps”—the prices registered in recent comparable neighborhood sales. From there, the pricing decision revolves around the tradeoff between maximum asking price versus the desire for a speedy sale.
Even if there's no time pressure at all, serious sellers will still set the asking price below a level that indicates
If time pressure is an issue, experienced sellers will peg the asking price just enough below neighborhood comparables to make the value evident. Tagging “motivated buyer” on the listing can attract attention, but the right price cuts to the chase. That’s a tactic bound to draw timely offers—especially when a Michigan property is in A+ showing condition,
For most prospective Michigan buyers, it’s the mirror image. Rather than starting from the reality of neighborhood comps, the pricing of their future home begins as an abstraction: the “looking” range.
The top of the range will be a figure that is pulled from what is comfortably affordable rather than what that figure will command in the current market. Once the serious house hunt is underway and some area properties have been visited, that top-of-range number will almost always need some adjusting—usually (but not always) upward.
In a successful transaction, the mirror images of buyers’ and sellers’ approaches to home pricing do ultimately wind up converging. That’s another area where having a knowledgeable Michigan Realtor® on your team is invaluable.
When it comes to offers and counter-offers, whether you’re a buyer or seller, having your side of the negotiations handled by an experienced professional is a sure way to keep the other side tethered to reality. Arriving at a bottom line reflecting realistic and lasting Michigan real estate value is what most often winds up bringing both parties to a happy conclusion.
The first step? You guessed it: call or text me!