The culture of the place where you grow up plays a great role in your method of purchasing commodities. There are places wherein people will only buy something for a price that is below the listed price, unless they are in a department store. The same is true with real estate, and this is one of the main problems that a lot of real estate agents are experiencing.
In order to make our discussion easier, here are some of the words that you will encounter in this series:
Listed Price - this is the price that was listed for sale. It is the amount that the owner of the house is willing to receive in exchange for his property.
Market Value - this is the real amount that the property is worth. Whether a property is being sold for less or for more, the market value dictates the real price of the property.
Short Sale - this is a method wherein a property is being sold for a price lower than the amount that an owner has to pay for the mortgage.
Price Offered - this is the amount that the buyer is willing to pay in exchange for the property that he wants to buy. It can either be below or above the market value, which depends on the situation of the buyer and the seller.
As I have mentioned above, there are people who think that if they pay the full amount of the listed price, they paid more. This is the reason why they always bargain with real estate agents and have a strong stand not to pay for the property that has a listed price the same or even lower than the market price.
For example, a property that is listed for $100,000 has a market value of $110,000, received a $90,000 dollar offer from someone. Their reason for offering a price $20,000 lower than the market price is that the price of real estate will start to go down within 6 months, which is only based on myths. Now, what makes things worse is that if they pay $100,000 for the property, which has a market value of $110,000, they feel that they paid more than what they should.
The reason why real estate agents are not following this trend, especially for short sales is because if they do so, there won't be market value. Everyone will simply be guessing the price that they want, and everyone will be happy when a deal happens to be all on their side; the owner gets the price that he wants, the buyer got the house for a price that he wanted to pay, and the agent gets paid without having problems in selling the property.
Tood P. Miller is a Realtor that specialized in Las Vegas Short Sales. If you want to know more about his Las Vegas Short Sales services, please visit his site.
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