Is it REALLY “Below Market Value?”
As many Sellers already know, it’s a tough market out there, especially in the higher brackets.
So, to let prospective Buyers know that their home is a deal, more Sellers (or their agents) are peppering their marketing with phrases like, “asking price less than market value.”
“That’s Easy For You to Say”
Without doing the “comp’s” (comparable sold properties) or knowing the neighborhood, it can be hard to tell. And if it’s a property that you love and want to buy, you may not to wait around to find out.
However, if a home really is under market value — and it’s not north of, say $600k — it’ll sell, quickly. Even in today’s Buyer’s market.
If it lingers for weeks (or months, or longer) . . . by definition, it’s not “less than market value.”
P.S: And no, asking less than tax value doesn’t automatically make a home “below market value” these days. Depending on the part of town, I’d estimate that perhaps 50% of the homes currently listed for sale are under tax assessed value.
P.P.S.: one of my favorite New Yorker cartoons shows a father and son standing in front of a storefront covered with signs screaming “Must Liquidate,” Going out of Business!!,””90% Off!,” etc.
The caption: ‘some day, son, this will all be yours.”