One of the lessons I learned from my parents while growing up is to try and see things through the other person’s eyes and to understand their perspective. Sometimes people buy and sell real estate looking at things through their own eyes.
Occasionally sellers will not see the problems in their own home and how it compares with what else is on the market. These sellers are often the same people that as buyers can find every fault in every home they look at. In short they expect to sell high and buy low. I imagine that sometimes this happens to people. But if you are buying and selling in the same market it is unlikely.
I always recommend that buyers and sellers look at the market to see how comparable properties are selling, and consider the market direction. You also need to look closely to see if there are any issues with the home that would lower its value.
When selling a home you need have a reason why your home is worth more than the other home that may seem identical to it if you are going to price it higher. Does it have nicer fixtures? Is the lot bigger? Is the location a little nicer? Are you offering financial incentives? Credits? Carry back 2nd mortgage? No one is going to pay you more for a house if they can get the same thing down the street that meets all the same buyer needs for less money. Now with many houses on the market they may miss a home that might be better priced than yours and meets their needs and go ahead and put an offer in on your homes. So as I have said in another post, exposure is important.
There are many unique homes that are hard to price. I saw a home like this over the weekend with some buyers of mine. The home was very old but had been well kept and remodeled. It had a back yard with water falls, coy ponds, and aviaries, surrounded by terraced lush gardens with many seating areas to relax in a very private yard. At the back of the yard was another small cottage. It felt like a bed and breakfast. My buyers loved it but it did not fit their lifestyle. Not many people will want this home to live in, as much as they might appreciate its beauty. It will sell. I am not sure at what price, but it may take a while to find the right buyer.
Some buyers may be willing to pay more for a premium home that is fixed up. Others may not be willing to do so, preferring a more standard arrangement that they may plan to upgrade themselves. When pricing you may wish to price your premium home at the same price as the standard condition home down the street if you want to sell quick. Most buyers will go for quality if priced the same as the standard home.
When buying you should consider the offer carefully and try to ascertain the seller’s motivation. If the seller has financial pressures, lots of equity, a need to close so they can buy another home they want, urgent relocation needs, if the property has been on the market a long time, or other pressures they may take substantially less than the asking price. However, they will generally not take less than they could easily get if they just priced the house a little less.