How Listing Agents Determine Their Asking Price is important in saving you money when you purchase property. Here are 4 common strategies youll start to recognize when you begin to view homes. Knowing how the opponent thinks is always helpful in any competition.  Buying a house is like a game.  The buyer wants to pay as little as possible and the seller wants to get as much as possible. Determining a real value helps in the negotiation and understanding the market is key to getting a house for the best price.  

1.   Clearly Overpriced: There is a lot of competition to get listings. Some listings agents will "over inflate" the value of the house to get the listing many homes are prices 10-25% over the actual market value. Every seller wants to get a much money as he can get for his property.  This doesnt fool a sharp buyers agent who is aware of the prices selling in their market.  Usually these houses stay on the market longer than most and end up selling for less than the market value. After so long on the market the sellers are worn down from being on the ready and could be very negotiable. Looking at house that are overpriced can lead to a house bought under the market value.

2.   Slightly Overpriced: These homes are priced 5 to 10% over the market value.  This represents about 75% of the market. Sellers have figured that their homes are either better than others in their price range or they need to have a higher price so that the buyer can negotiate a lower price. The house will sit.  Most agents look up properties in the price range that their clients request.  Being overpriced they are passed over.  They stay on the market longer and sell for less. Looking for house in a price range a little higher and making a lower offer is a good strategy

3.   Priced to Sell: These are houses that are priced to sell quickly.  They sell for close to their listing price.  The sellers are reasonable and their agents have educated them to the market.  These are good buys and go quickly.  You must be ready to make a quick decision on the purchase of a house that is well priced.  It is obvious not only to you but to other buyers that this is a good deal. Making a reasonable offer with no contingencies is the best strategy here.  

4.       Priced Below the Market Value: These are the bargains everybody dreams of-- a house that is offered below the market price.  These often end up in bidding wars and end up sell for more than the asking price.  Listen to your buyers agent on these.  Be very competitive.  Paying more might mean you are still getting it for less than the market value. Some sellers are motivated by a quick sale. These homes attract multiple offers and sell fast - usually in a few days - at, or above, the asking price. Be ready!!!