Homeowners who want to sell their property must price it according to market value. Underpricing a piece of land will undeniably move the property. The only problem with that is the owner will most definitely take a loss at some point during the transaction. Overpricing real estate in Anchorage, AK seems to be the wise choice when all things are considered.
The Advantages of Overpricing
Overpricing on the other hand, gives property owners the advantage when negotiating for a fair and reasonable price.
The following benefits come with posting a higher than the average sale price:
1. Allows for a moderate amount of freedom in the negotiation process allowing both buyer and seller to counter each others’ offers.
2. If competition for the property is stiff, a higher price may be paid for the property if two or more bidders want it badly enough.
3. Overpricing prevents a homeowner from taking an excessive loss on the property.
Under-pricing to Start a Bidding War
In some cases, if a homeowner knows there are several parties interested in their home, under-pricing can lead to a bidding war between the buyers. This can work to the seller’s advantage if every buyer in the competition is serious. If not, the seller may be left holding the bag and taking a loss.
It’s a Buyer’s Market
Individuals interested in buying real estate in Anchorage, AK have to be on the lookout for homes that are priced too high or too low. Knowing a property’s fair market value will help a buyer know what type of bid to put in on a property. If a property is priced beneath fair market value, the first question to ask is why. Is there something wrong with the property or does the owner just want to be out from underneath it? A little research will help you figure out what is going on.
When the price of a property is unreasonably high, the owner may have their reasons for carefully screening prospective buyers. Either way, understanding the market and how value is placed on a property will help both sellers and buyers know what price is reasonable and what ones need to re-evaluated.