Why Are You Obsessing Over List Price?

Showing properties on a regular basis, I tend to meet some peculiar buyers that seem to get information from… well no one knows because it doesn’t often make sense.
However one of the most common hang ups buyers seem to have is the unwillingness to write offers at, or above the asking price. (If you just told your self of course you don’t, then I’m glad you’re reading this.)

One crucial point you need to understand is the fact that no seller and or real estate agent will purposefully over price a home. Granted sellers always believe their home is worth much more than it is and some agents will list a property at an unrealistic price to get the listing, but will then talk to the sellers about a reduction when no one is even showing it.

It’s just so funny to me to see how buyers come up with an offer amount, solely based on the asking price and wondering why they aren’t having any luck getting offers accepted.
For instance:

Property A and Property B are exactly the same. (comps show $310,000)
Property A is listed at $300,000
Property B is listed at $280,000

Mr. Buyer will offer $290,000 for Property A and $275,000 for Property B

Why? They are both worth $310,000. Would you accept $275,000 for your $310,000 home? Doubt it.

Let me give you a different perspective.
Imagine for a moment that Property B was your dream home. Got it?
Now let’s assume that Property B is listed for $1. (yes, one dollar)
Knowing the comps show $310,000 and you have one shot at it.
What price would you offer for your dream home?

This is how you should approach writing offers. Wether the property is listed for $1 or $1,000,000 it doesn’t matter!
Stop obsessing over list price!
Yes everyone wants a good deal and those are out there.

My biggest piece of advice is to have your agent show you the comps and figure out what makes sense for you based soley on market value not on a random price.

I hope this has given you a different perspective on offering price and I welcome any thoughts or comments you may have on the subject.