Sometimes you will receive a flyer in the mail from a Realtor® promoting the fact that he or she has successfully sold a property in the area. Usually it will have a big "SOLD!" sign across the picture and the write-up below with the Sellers asking price. And that is what fools some people.
Here is how some people think. They see a home "SOLD" that was listed at $630,000. Their house is similar but naturally they think their home is better and naturally worth more so they decide to sell and want $650,000. What they don't know is the home listed at $630k actually sold at $610k.
In reality their house is worth about the same, maybe slightly more, say $615,000. A common scenario plays out like this. They are on the market at 650, they get lots of people through but no offers. So it sits a month or two and he finally decides to lower the price to 635. Finally gets an offer of 610. "Bah!" he says. "I just came down 15 grand and now they want me to come down another 25? Crazy! Tell them to Pound Sand!"
Another month or two goes by and one of two things happens. The listing expires (which must be the Realtors fault) or Buyers, who have watched it sit on the market, start making lower offers. $600k or $595k or $585. Depending on the Sellers situation he may end up taking one of the lower offers, hates his Realtor and has a bad taste in his mouth. Meanwhile 5 months have gone by and he ends up with $10,000 less than his neighbour who has been happily living in their new home for half a year already!
Of the 35 properties that have sold in the past two days between North Burnaby and Pitt Meadows, only 1 sold for the list price, 3 OVER the list price and 31 UNDER asking price. A majority of homes sold at 97% or better while one sold for only 89% of list.
I guess the moral of the story is listen to your Realtor who knows the current market conditions. They aren't trying to rip you off, they just want to help you sell your home so you can move on.