Monday, April 13, 2009

Under-Priced Homes in the San Fernando Valley

It's getting quite obvious that homes are being priced considerably below market value in order to drum-up offers and a quick sale on homes in the San Fernando Valley. REO agents are notorious at pricing bank owned homes at ridiculously low prices then selling for considerably higher amount.

Why?

To generate a quick response and multiple offers from buyers in order to sell the home quickly and for a higher amount. The belief is that if you price the home below market value, the number of buyers will increase considerably driving the selling price above what the home would have actually have sold for if it was priced at market value.

Why should this affect me?

From what I've personally seen, home-buyers still have the perception that the prices listed can be negotiated below the list price. This may be true on homes priced above $600,000, but on homes below that, it's not uncommon to see multiple-offers and over-bidding. In most cases, it takes a quick phone-call for a status update on a home and an idea of what the home will probably sell for.

As in any market, you need to be realistic as far as what's happening in the marketplace. A professional San Fernando Valley Realtor will be able to educate you on what to expect based on your price range, location, and amenities of the home (bed, bath, pool, etc...). Please listen to your real estate agent for professional advice.


As the triangle graph illustrates, more buyers purchase their properties at market value than above market value. If you price your property at market value, you are exposing it to a much greater percentage of prospective buyers and you are increasing your opportunity for a sale.

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