Homes Priced Over FMV

[Dylan Arveson]

Hey all, 

I'm curious what you think about homes listed over FMV. Specifically, homes listed at $100,000 over or double recent FMV analysis. Is it pretty common while the market is adjusting upward, and will FMV catch up? Or is it an indicator that these homes are overvalued? I'm cautiously leaning towards the latter, and believe that the market will correct itself and probably land somewhere in the middle.

[Geordy Rostad]

@Dylan Arveson

It's natural for people to want to push the market but often it backfires if they push too hard. Especially if it's a price-sensitive market segment in the first place.

Usually if they market for too high of a price, they will have to go through a series of price reductions over an extended market time. They often end up getting less for it than if they had just priced it at market in the first place and paid a bunch of interest during the holding period to add insult to injury.