I’d like to list my home for $10,000 over Fair Market Value since so many buyers bid low on homes but my agent advises against it. Why?

Listing your home at fair market value is the smartest and easiest way to sell your home quickly. You have hired an agent to help you sell, and this is one piece of advice that they’ve definitely gotten right. Listing your home above fair market value will scare potential buyers away. They may think you’re stubborn and unwilling to negotiate, especially if you’ve asked your agent to list the property against their recommendation. Properties that are priced fairly are the ones that get showings, showings lead to offers and offers lead to a sale. Overpriced properties can sit on the market for over 60 days without a single showing. If you stage your home properly and make sure your agent is doing their part to market the property, you shouldn’t have any problems receiving fair offers on the property.

Should I list my property for less than fair market value to create a bidding war?

This is completely your choice, but we would advise against listing your property below the fair market value. Even though selling the property is completely your choice, you may get one buyer that sees the property and immediately places an offer before they have any competition. They may try to come in at full price, thinking that you’d have to accept, since it’s all you’re asking for the property. While you ultimately can reject any offer, even one above your asking price, it makes you look like you’re wasting their time. Also, depending on the state you live in agents can get very upset about a denied full-price offer. Some agents take their commissions very seriously and feel if they brought a ready and willing buyer to the table that offered full price, that the commission is owed to them, whether you close or not.

How Do I know what my home is worth?

This is one of the best reasons to hire a licensed real estate agent, since they know your market and can give you a very accurate price on your property. An agent will perform a Comparative Market Analysis, which takes into consideration any Cherry Creek homes for sale that have sold in the past three months that are comparable to your property. They may use an average of price per square foot or they may use their own adjustments to come to a final price for you.

About PorchLight Real Estate: PorchLight Real Estate Group has the most experienced and knowledgeable Denver real estate agents in Colorado. For more information about homes for sale in Denver CO or specific neighborhood homes please visit www.porchlightgroup.com.

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