Lots of  people don’t  enjoy buying or selling a home, partly because of how the system works. When you want to buy something in a store, one look at the price tag tells you how much you’ll have to pay. When you want to buy a home, you can look at the list price, but these days that may not help you much. More likely than not, looking at the list price will leave you wondering “How much will I have to pay for this home? Can I get it for less than list price or does the seller really want more than list price? Will there be a bidding war? How much should I offer?”.

Why do things have to be this way? As a buyer, wouldn’t  you prefer realistic list prices?  For example, if a home was listed at $800,000, you’d know that you’d have to pay approximately $800,000 for it. You wouldn’t have to wonder what the seller was really thinking. All you’d have to decide is whether you’re willing to pay somewhere in the vicinity of the list price. And what about if you’re selling? You’d no longer have to deal with low ball offers. You’d set a price based on what you think your home is worth and how motivated you are to sell and then let the market decide if your home is worth that amount. If it’s not, then you can adjust your price, just like a store does.

Right now, our market operates a little like a bazaar. Personally, I like to negotiate so I don’t mind that, but not everyone feels the same way. (As an aside, isn’t it ironic that the largest purchases of our lives are conducted in a bazaar like manner while small trinkets that are often found in bazaars are sold in stores?)

Having realistic list prices would eliminate a lot of stress. About two weeks ago, a home came on the market listed at $799,000. As soon as I saw it on the computer, I said to myself that it was worth between $1,050,000 and $1,100,000. Five days and 22 offers later, it sold for $1,100,000. Twenty one buyers made unsuccessful offers. How much time did they spend thinking about how much the home was worth and how much they were willing to spend? How many of them wasted energy thinking they could get it for significantly less than its ultimate sale price? Did these people walk away feeling good about the process or did they feel deceived?.

The market can be unpleasant, but it doesn’t have to be this way. Next time you’re selling your home, consider a realistic list price. You’ll be helping everyone, including yourself.