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Please Overprice

Much of the time, when a Seller overprices their property it can work to a Buyer’s advantage. Simply what happens is, the overpriced property hits the market. Buyers that were looking for that type of property see it as soon as possible. They look at it and either dismiss it because they think it is overpriced or they make an offer of what they think it is worth, which the Seller inevitably rejects because it is too “low”. Then, the buyers that initially dismissed it or made offers either buy another property or become disinterested. So, all of sudden, the Seller has dramatically reduced the Buyer pool, aka reduced the demand, which reduces the value and the Seller then needs to lower the price below what they could have originally fetched to spark fresh demand. So, as a Buyer, sometimes you think, “Seller, please overprice.”

$882m closed YTD and at least $191m in the pipe…