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Part Four

value is or are trying to push the market themselves. Nine out of ten properties that start out for-sale-byowner end up listed by a Realtor®. A home may be overpriced for many reasons. Often, it is just a “trial balloon,” where the sellers just want to see if they can attract a better-than-normal offer. There are also brokers who “buy” listings. That is, against their own better judgment, they will agree to list a house over market in order to get the listing. These brokers may be desperate for business and afraid that they will lose the listing to their competition, or they have been unable to present a convincing argument to the sellers to price their home appropriately. There are sellers who simply insist their home is worth more than any objective market analysis will indicate. For example, a home which was for-sale-by-owner for months, was overpriced, and now is listed with a Realtor®, may be priced even higher than it was prior to Realtor ® representation. That is because the sellers insisted they wanted their net price, so they added sales commissions to the price when they listed the home. This ends up being a collusion between two people, the homeowner and the Realtor®, both of whom are either desperate or greedy and unwilling to face reality. Homes like this usually stay on the market the longest and end up being sold for less than market value. In the case of an overpriced home, it may be necessary for your Realtor® to include a market analysis with the offer when it is presented. Homes may also be underpriced for the market. This generally occurs because sellers need to sell fast, or because their broker doesn’t have a firm grasp on market value. Sometimes, a broker may convince a seller that the market value is actually lower because the broker wants a quick sale. When you find a property like this, and you determine it is the property you want, do not take a hard negotiating position. Take your Realtor’s® advice, recognize 100

Profile for Linda DeVlieg Real Estate

How to Make Your REALTOR Get You the Best Deal - Albuquerque, New Mexico edition  

A guide through the real estate purchasing process - co-authored by Linda DeVlieg and Ken Deshaies

How to Make Your REALTOR Get You the Best Deal - Albuquerque, New Mexico edition  

A guide through the real estate purchasing process - co-authored by Linda DeVlieg and Ken Deshaies

Profile for lindadev