Perceived Value Drives Multiple Offers
Within 48 hours of putting our Maplewood home on the market, we accepted an offer for 10% above its list price. The home was in perfect, turn-key ready condition, and located on a favorite Maplewood street. The sale was thrilling; we were overjoyed by the market’s response.
But this isn’t always the way the story goes. In a fast-paced seller’s market, such as the one we’re in currently in Maplewood and South Orange, what determines which homes will sell below, at, or above their list price? And what about those legendary listings that receive 10 offers?
The basic answer is the market, but the better answer is perceived value.
What buyers value is ultimately very personal, but there are a number of attributes that appeal to the masses: space, light, renovated kitchens and baths, master suites, and manicured landscaping to name a few.
When a buyer perceives value in a home — because they love its features for its list price — it’s likely others will perceive this same value, as well. And it’s this perceived value by multiple buyers making offers that drives a home’s sale price above its list price.
In the past twelve months, 61% of Maplewood homes and 52% of South Orange homes sold for more than 100% of their list price. These percentages have been climbing in recent years, and while it’s indicative of increasing demand, it’s also a reflection of well-priced homes. If a home isn’t priced to show perceived value, at least to a few, it will sell below or very close to its list price.
These concepts have different implications for buyers and sellers, and even from house to house. If you’re in the market to buy or sell, let’s connect and discuss how to use these concepts to your advantage. Send me an email to [email protected] or a text to (646) 306-9558.
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