DROdio Real Estate

OK home buyers, are you listening? When we tell you what we're about to tell you, you'll probably respond saying "well thanks, Captain Obvious" but we'll walk you through what you probably haven't considered, and why it matters to you if you're looking for a home. Ready? Here goes:The sales price has almost no correlation to the price at which a seller will sell.Let me repeat it:The sales price has almost no correlation to the price at which a seller will sell.Seems obvious, right? Here's why it's not obvious:

1. First of all, if you want to buy a $500k house, you're probably browsing the market in the $500k listing range. That's where you're wrong. You should be looking in the $600k range. Why? Because you can make a lowball offer and have a good chance of getting the property. Want to understand how the process works? Watch our "successful lowball offer" tutorial. And here's a real example of it working.
2. You are probably buying based on emotion, not logic. Don't do that! You lose all your leverage that way. If you walk into a house and say, "gosh, this house is beautiful. Honey, this is it!" then you've lost all your leverage. You have to be willing to buy a house that's not quite ideal if you're buying logically. Read our "Pick 2" blog to understand what we mean, and again, watch the successful lowball offer video.
3. Here's the crux of why the sales price has almost no correlation to the price at which a seller will sell: Let's say that two houses are listed side by side, each for $600k. The reality is that in one of those houses, the seller might be dying to sell. Maybe it's already vacant and they are paying two mortgages. Maybe they were just laid off from their jobs and are about to go into foreclosure. Who knows! And maybe in the property next to it, the sellers have all the time in the world to sell because they're retiring and want to move to the Outer Banks but are in no rush. So how can you tell that at the first property the sellers will take an offer of $500k just to stave off financial ruin, while the neighbor won't go below $595k no matter how long the property sits on the market? The answer is, you don't know unless you use an expert (yes, that would be us) to implement the (yes you guessed it) successful lowball offer strategy.

If you don't want to make a lowball offer, that's great. It's less work for us. It takes a lot of work to put lowball offers in! Most other Realtors don't want to take the time to do it. But we're set up in ways that allow us to be very efficient making lowball offers (you can also learn more about our electronic signature process & other technology innovations that help us be more efficient.)

Share This

Let's Meet for Coffee

Discuss your homebuying strategy with our owner
over coffee.   Get more details here.

This entry was posted on Friday, August 24th, 2007 at 11:20 am and was filed under All the questions you were afraid to ask, The Buying Process. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.