Hi everyone. It's Lance Mohr, your Tampa Bay real estate expert and in this video I
want to talk to you sellers I want to talk about listing your home below the
lower market value and how you can actually get more money doing that
alright so the other lady was watching TV watching shark tank and I saw Barbara
Cochran anja and then a couple days later I figured well she's a real estate
guru let me watch some over YouTube is what's really much a little bit about
her and one thing she said that was real surprising to me she said when she was
selling real estate years ago she used to list properties below market value so
they would have like a frenzy on him and it would eventually they would
eventually get more money than possibly the home wasn't even worth in certainly
more money than they would be worth if she put him at fair market value and I
thought that was real interesting started thinking about it I know some
agents out there believe in that philosophy I'm not saying that's good
I'm not saying it's bad and certainly what tell Barbara Cochran anything about
how to run her business but I really think when you look at how to list a
home when it comes to pricing there's three strategies that people do I think
the number one thing that people do is think and I've seen this over the last
20 years dealing with thousands of homeowners talking to thousands of
homebuyers is they list their home hi there they say oh I'm not really in a
hurry so we'll list it hi we could always come back down right that's one
philosophy the second one is well let's just put it on on it fair market value
what it's worth what it's going to appraise for what a buyer will buy it
for and then the third is Barbara's theory let's list it why because we'll
get so many buyers in the door they'll force the price up first thing I have to
say it really depends on your home on your market as well what's going on in
your market so there's a certain amount of people that will never pay above
listed this will make you different to the
torte substantially more than that or not
not a lot of people most people want to pay what the Holmes work especially in a
good real estate market like we're in so let's break those down first let's take
the list real low and sell real I I understand this and this could be a good
way to go I mean it just depends on your state the area that you're in
how much is your home etc it's not really my cup of tea I don't like to do
that because if I have a home I'm listing for three hundred thousand and I
put it at 280 what happens if no one buys it at 300 let's say they
only go up to do 98 and no one buys into 300 well then you lost money I just not
into that I don't think that really works well in my market it may but it's
a pretty big gamble with the sellers money especially in a hot real estate
market the most common way that what most people do is they over price it and
a lot of times this has to do with a real estate industry because when people
talk to different agents if they talk to enough of them and when I say enough it
could be just two or three or five there's most agents a certain percentage
and I should say most but a certain percentage of them are going to do
what's called it by the listing and what that is is they go out there they know
the homes worth $300,000 but they'll tell the sellers were 320 or 325 just to
get the listing and the seller is thinking well I would rather go with the
agent that tells me tells me three hundred and twenty thousand because what
happens if I get it you know I can always drop my price which is true but
here's the thing and this is true from being in the business for over twenty
years and this is true statistically the longer your home is on the market the
less you will get for your home of what it's worth in other words I'm not saying
what the listing price is because if you put a price at 320 and it's only worth
300 you're going to keep it on the market you might drop it to 3/10 then
maybe you'll drop it to 305 by the time you get to 300 the home is going to be
shot born so people are going to be looking at and remember when you were a
buyer this is what happened they're looking at it
ready to say why is it been on the market so long they're going to look at
me as a real estate agent in a spec and they're going to say well why doesn't
anybody want it what's wrong with it and you know it puts a seller in a big
disadvantage on negotiation when it homes been on the market for a while
it's the opposite if the third route which is what I like is give it really
really clean get it marketed phenomenally phenomenall pictures
description everything go full force put it on the market for what it's worth and
you shouldn't have a hard time especially in this market it getting
full price if not more because everybody's going to see it's worth that
and the two things that buyers want pretty much everybody not just buyers
the table in general they want what other people have remember when we were
kids we always wanted the other kids toys that's just sort of normal I have
kids and it's always like that you know they always want their friends toys so
we're the same way so the and it becomes a feeding frenzy in a lot of cases so I
personally think that's the best way to go a lot of agents I think they'll do
the by listing strategy and just you know talk to the seller and talk them up
because at the end of the day they're thinking what do I care it's not my
money I actually talked to a friend of mine and I was very surprised he told me
one time he substantially over listed on him and when I asked him what he sold it
for he gave me the price and I was surprised how low it was and he said
well if the seller price but right in the beginning we would have said we
would have probably got $20,000 more but it was on the market so long it got shot
born I said well why would you take the listing in his response was well what
was I supposed to do if they didn't list it with me they just would have list it
with another agent in that agent would have got the Commission I don't agree
with this at all but at the end of the day it's the sellers fault for not
picking the right agent don't base your choice off of what an agent tells you
they should choice off of the marketing and negotiating skills that they have if
they tell them what you want to do as far as price you're the owner you're
the decision-maker it's your home so I hope this helps you gather any questions
whatsoever please contact me if your isn't it selling home in the Tampa Bay
area I would love to interview for the job and check out my playlist about it
I'll put a link above on how to get your home sold so if you like these videos
subscribe to the channel if you have any questions or anything to say leave a
comment below I wish you the best a lot have a wonderful day
you