Who sets the price of a home?
Okay real estate insiders, I have a question for you. Who sets the price of a home? The seller? Nope. It’s the buyer that says, “I want to pay X dollars for Y house.” Yes, a seller sets a price, but in the end, there has to be someone ready, willing, and able to purchase the home.
Because of that, why are we letting sellers dictate a sale price? Why do we continue to allow some agents take listings at ridiculous prices in order to buy the listing (which is a NAR violation)?
It’s the buyer that sets the price
So, to that end, I propose the elimination of an asking price. Then, a good real estate agent can do their job by researching what someone should pay for a home, the overpricing listing agents and their sellers will not be able to make up unrealistic numbers anymore, and the mortgage lenders will realize that value is what someone is willing to pay at that date in time. Impossible? No. Improbable? Probably. But, let’s take a shot at it.
How this would work
Say your client wants a three bedroom, two bath colonial in the Repel School District with at least a one-car garage and swimming pool.
You, as the agent, then research the sold listings and then the MLS for the type of house, not the price.
You can also hire a certified, quality appraiser to help you go deeper if you need their help!
Then, your buyers will put in an offer based on reality and the seller will get an offer, again, based on reality.
Yes, I know, there are tons of details, but I am an idea guy. You can help me by coming up with the ideas and see if we can make this move forward.
Make it so
It makes everyone’s life easier, it makes the good agents stand out, it eliminates the bad listing agents that constantly overprice, it puts sellers and buyers into reality pricing, and it helps mortgage companies know values.