any homebuyers make the above what the market will
mistake of assuming the support. It may be just above or
price listed with a home well above, but it will
is somehow related to the actual definitely be above. The only
value. In fact, the price often exception to this situation is if
is not. the seller is motivated to sell
fast for some reason such as
What is the fair price of a home? divorce. In said situations, the
Many would argue the fair price seller may price the property at
is the one agreed upon between a or below what the market will
buyer and seller when support.
negotiations conclude in the
offer and counteroffer process. A less obvious motivation for
While this is certainly one overpricing a property boils down
approach to the situation, many to simple financial numbers. If
buyers make the mistake of you own a home, you are bombarded
assuming the listing price on a with offers for home equity
home has some inherent credit lines. The credit line is
relationship to the appraised essentially a way of liquefying
price. This is sometime incorrect the equity in a property. Many
because of issues involving the people use these lines to pay a
seller. wide variety of bills. When it
comes time to sell the property,
Obviously, the first issue to however, they suddenly realize
consider with pricing is the their profit from it is going to
natural tendency of the seller to be very small. In such a
try to get as much as possible situation, the natural reaction
for the property. In practical of the seller is to ask for price
terms, this means the property at the high end of the local
will almost always be priced market. In such a situation, the
seller is unlikely to be amenable motivation of the seller when
to negotiating down the price setting the asking price. Doing
because they simply cannot. so allows you to determine if the
price is negotiable or the seller
When looking at homes it is is stuck.
important to understand the
About the Author:
Raynor James is with http://www.fsboamerica.org - FSBO homes for sale by owner.
Read more articles by:
Raynor James
Article Source: www.iSnare.com 
