Maybe, But Not Because the Listing Agent Says So
Stock market investors are accustomed to analysts who discuss a company’s prospects, and recount a long list of negative or at least worrisome issues.
But then they slap a “Buy” rating on the stock, anyways, because they believe “the bad news is already priced in” — and therefore the stock is cheap.
Is there something analogous in the housing market?
Discounting Bad News
Smart Realtors selling a challenging property will frequently opt to get the negatives out of the way.
So, the marketing verbiage will subtly intimate that the home needs work (“remodeling opportunity”), hasn’t been updated in decades (“lovingly cared for by long-time owner”), or some such.
Often times, the listing agent will go on to opine that the foregoing is already reflected in the asking price.
It depends on two things:
One. What the Comp’s say.
Pricing a home with “challenges” is no different than pricing a home that’s in mint condition; projected market value is established by comparing and contrasting the subject home with three, similar nearby sales.
If, post-adjustment, the subject home is in line with the Comp’s, the home is fairly priced; above it, it isn’t.
Two. What the market says.
Ultimately, however, the Comp’s don’t establish fair market value for a given home . . . Buyers do.
Once a home is prepped and widely exposed to the market by an expert Realtor, the home’s value — and whether its negatives are already discounted in the price — is up to prospective Buyers.
P.S.: And if the price is low . . . it will likely draw multiple offers (still).