Recently a friend and I got into a discussion about house pricing. He thinks that if a house is overpriced, buyers will simply submit a lower offer. As this discussion has come up more and more among my friends, I’m beginning to think that this is the prevailing logic. And it is logical. But buyers often aren’t logical. Even the most head-strong, type-A people I know are swayed considerably by their emotions when it comes to their home. Whether they know it (or admit to it) or not.
All that being said, I’m here to tell you that the vast majority of the time, if a buyer views what they consider to be an “overpriced” house, they simply walk away. Now, logic may say “try out an offer!” But I’ve seen it many times–just recently in fact–where my buyer clients simply say its overpriced and they rule it out. Or they use the overpriced home to justify the price for another house. Perhaps my clients think the seller is over confident, or unrealistic, or difficult to work with, or testing the market, or unmotivated. These are easy assumptions to make.
Now, savvy buyers who are working with a savvy agent may try a lower priced offer. But you need to be able to suss out the opportunities from the unwilling sellers. Sometimes it just a quick call or some smart sleuthing to uncover what’s driving the price. And just maybe you uncover something that could help your negotiation or understanding of the situation.