Boasting about selling a home for "over list price" is like bragging about a home run in a game where the fences were moved in just for you.
Welcome to the not-so-magical land of real estate metrics, where the truth is often dressed in a costume of convenience, leaving consumers dazed, confused, and potentially misled. Selling a home for "over asking" becomes a badge of honor, worn proudly by agents, even if the list price was set in the basement. Let's peel back the layers of these borderline deceptive practices often rooted in ignorance by both the agent and consumer alike.
The Illusion of Success
Agents and brokerages have been known to engage in a bit of... let's call it "creative storytelling." With the wave of a wand (or the click of a keyboard), "sold over list price" becomes the spell cast to enchant potential clients. But here's the kicker: if the list price was set too low to begin with, beating it isn't exactly a Herculean feat.
A Dose of Reality
Agents, bless their hearts, often let the wind of their clients' whims set the sail, leading to list prices plucked from the ether of wishful thinking. The result? A metric that's about as useful as a chocolate teapot.
The reality is that the list price should be a vehicle to help sellers achieve their desired goal rather than the goal itself. Sometimes, the best way to get the seller as much money as possible is to price in a way that you're likely to sell for LESS THAN list price. It happens. There are specific scenarios where that approach makes sense. If all you're concerned with is selling for "over list," you might leave money on the table by not choosing the best strategy for that specific seller's home.
Conversely, there are also scenarios where the list price is low to create competition and drive up the price. At that point, yeah, you better sell for over list. The true experts will have a clear target north of the list price and push until they exceed that number.
Market Value: The True North Star
What if we navigated by the stars of market value and comparative analysis instead of celebrating the easy wins? Imagine agents proclaiming, "We sold this house over market average," with the same vigor they once reserved for their over-asking victories. This approach doesn't just sound better; it's grounded in the reality of what a home is truly worth, appraiser-approved and all.
Selling north of market value is the goal. To do so, you need a clear understanding of the market value for the neighborhood by digging into the sold data for the neighborhood. For an agent to deliver a better experience for their clients and help them reach their best possible outcome, it starts with knowing the target based on market value. Simply put, you want an agent that sells your home for more than the neighbors sold theirs for rather than just selling it for more than the list price.
The Mismatched Game
This isn't to say all agents are navigating their ships through murky waters with a broken compass. Many, through no fault of their own, have inherited the map marked with "X equals over asking" as the spot to find treasure. But as the tides change and consumers become more savvy, it's time to chart a course towards transparency and truth.
It's crucial for consumers to don their spectacles of skepticism. As we traverse the tricky terrain of real estate transactions, let's advocate for a shift in focus from the misleading allure of "over asking" to the solid ground of "over market value." After all, a little clarity goes a long way in a world rife with poppycock. So, dear homebuyers and sellers, arm yourselves with knowledge, question the tales told by tall hats, and remember: when it comes to your home, the true story is in the numbers, not the narrative.
