By Chad Meier, March 13, 2021
Considering the following criteria…
- An accurate comp analysis for the owners of the beautiful house at 123 Unicorn Street suggests that a bank appraiser would peg their home’s value at around $513,000.
- The sellers and their agent end up listing it for $475,000.
- The market goes crazy for it on opening weekend, and after negotiating with 10 buyers, this seller team agrees to accept an offer of $525,000.
Which of the following conclusions to this scenario ring most true to you?
A. The sellers are truthful when they boast that they managed to sell the house for $50k over its market value.
B. The house sold for exactly its market value.
C. The seller should have listed (i.e. priced) it a bit higher to begin with.
D. The house was actually priced in a tactically smart way.
E. This type of pricing strategy might end up hurting the seller’s financial position once the buyer’s bank conducts its actual appraisal on the property.
F. There’s more to consider than just the dollar amount of any buyer’s offer.
G. I don’t know ¯\_(ツ)_/¯ There don’t appear to be any simple answers right now & it’s all just seems upside down.
H. I’ll provide a different take in the comment section below.
* BTW, even though this is obviously a strictly hypothetical thought experiment, it’s also a common occurrence happening in the PDX metro area right now.
Can’t wait to read your responses!
– Chad
Chad Meier
Broker | OR
He/Him
Hello, I’m Chad: Licensed Real Estate Broker, native Oregonian, photography aficionado, lover of old houses, friend to all animals, and powered by analytical data...
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