The List Price is Not the Home’s Value

For the last 45 days at least, single-family detached homes are selling for obscene amounts above their list price. I have seen winning bids of $50k-$70k over list price and I have heard of winning bids being $150k over list price on a $750k home. And I have heard of a home listed at $1.3 million go under contract for $1.6 million with an all-cash offer.

Thus, we must help our clients understand that the LIST PRICE IS NOT THE HOME’S VALUE!!! Any home’s value is determined by what a willing buyer and willing seller agree to. I have had over a dozen of you tell me that you don’t know how to price a listing today because our market is insane; so agents and homeowners are listing their homes low and wait and see where buyers take the price. This is the TRUE VALUE of a home! The contract price/sales price is the VALUE OF THE HOME!