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Why Listing Your Home at a Price Below Your Expectations Does Not Guarantee that you Will Receive a Lower Offer

The Real Deal

Everything Real Estate in the San Fernando Valley
Friday November 17, 2017
Why Listing Your Home at a Price Below Your Expectations Does Not Guarantee that you Will Receive a Lower Offer

Many potential home-sellers have done their homework, or so they think. They have reviewed all the online resources, and they believe they have come up with a reasonable price that their house should sell for. Ultimately, this research is fundamentally flawed. First, these websites do not provide the researcher with the full picture – the full picture includes: (1) the final sales price of all homes in the area, (2) What the housing market looked like at the time of the sale, (3) the number of offers on the house, (4) how many times the buyer-and-seller went back and forth, and (5) the ancillary agreements that were associated with the sale of the home. While this list is by no means exhaustive, it is easy to see how you may have arrived at an inaccurate home value. Ultimately, a licensed real estate agent, who is familiar with the local market, is likely in a better position to make an informed decision as to the present value of your home.

Working as a real estate agent is a full-time job, which requires the agent to keep their thumb on the pulse of the housing market in the area that you are interested in. For example, the agents with the Chernov Team have been involved in the Studio City market for several years. This experience translates into an intimate understanding of the ebb and flow of the Studio City housing market. In the event that your agent mistakenly believes the value of your home is lower than the actual value, you are not destined to take a lower offer.

You can’t undervalue a home. The market determines the value of your home. By way of example: Your home, let’s call it Home A has a proper market value of $700,000.00. Your agent mistakenly lists Home A at $650,000.00. Buyers’ agents see the listing, and realize that Home A’s listed price is an absolute steal. Unless there is only one agent doing their job, Home A will receive multiple offers at a value below $700,000.00. Your agent responds by informing the prospective buyers that there are multiple offers of Home A. Since all the buyers are aware that $700,000 is the proper value of the home, it is unlikely that the final price of the home is less than $700,000.00. Indeed, it is possible that by pulling many people into a bidding war, it is quite possible that the final offer will be above $700,000.00.

At the end of the day, your agent is working for your best interests; this is true even if their advice is counter-intuitive. The agents at the Chernov Team want you to get the highest value from your home, and have dedicated themselves to becoming experts on the Studio City housing market.

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