If you’ve ever asked your Realtor to list your duplex for more than the market says it’s worth, you’ve asked her to lie.
We all have a price we’d like to get for our properties. And, as it’s human nature, most of the time that’s a number that’s much higher than other people would like to pay for it.
And what someone is willing to pay for it is what it’s actually worth; not how much we’d like to have for it, how much the neighbors say it’s worth, or how much you have in to the property.
Even if you happened to find a buyer who agrees the value of your duplex is much higher than data suggests, unless that person can pay cash, the property must appraise for the agreed upon value. An appraiser is hired by the bank to give them an independent, objective opinion of value, which is formulated by comparing your duplex to others in the area sold for.
Sometimes, Realtors will agree to list a property at a higher price just to get the listing. Their hope is somewhere down the line the seller will agree to lower the price so it can sell. In the real estate industry, this is called “buying a listing”.
And while it might make you feel good as a seller, it will not cause your property to sell. In fact, data from the National Association of Realtors indicates properties listed for too much money ultimately sell for less than they would have had they been priced correctly from the start.
Don’t worry. Properties rarely sell for less than what they’re worth. The market recognizes a great deal, and buyers will rush to a duplex they perceive as undervalued. As a result, the price rises to where it should have been all along.