Bottom line: The seller lost $50,000 because of his agent’s incompetence. While stories like this don’t happen every day, they happen more often than you’d think. It’s a very real risk you take when you hire an agent who doesn’t have a proven marketing plan. Had a sign simply been on the property, it definitely would have attracted more interest and possibly even started a bidding war, driving up the price. At $50,000 below market price, the listing would have been bid and counter-bid several times, possibly even up to fair market value.
However, the market is changing.
Sellers do have to understand, however, that the consequence of interest rates going up in the last few months have affected buyers' purchasing power. You may have heard of houses going for far more than their original asking price--when interest rates were at 2-3 percent. Unfortunately, buyers can no longer make mortgage payments at those same prices when they are looking at interest rates for more than double that amount. A good agent will help you determine what the market in your neighborhood looks like now. What's important is helping you transition to your new home, and getting a good and fair price. Because it's also important to consider: ongoing house (mortgage) payments are a frequently overlooked cost of not finding a buyer quickly.
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