Everyone is so astonished right now with pricing going through the roof.  $100,000 over... $150,000 over... $400,000 over!!! No one can understand how this is happening.

Let me give you a little insight.

When a Seller decides to sell their home the first thing they do is call a trusted Realtor.  The Realtor will analyze the recently sold homes in the neighbourhood and from that they come up with a value they believe the home could sell for.

The value you come up with through assessing the recent sold comparable homes is called fair market value, this is the amount that the home should end up selling for.

The price that the Realtor ends up listing the home for is most of the time under market value.  This is a strategy that is used in a sellers market to create interest from multiple buyers.  It’s an industry know how, that when you list a home for more than 15% under market value, you will get about 20% more potential buyers come through and view the listing and as a result, which is why this strategy is so popular.  It helps create a buzz and a bidding war.

And there we have it.  Price is a gimmick, always check the market value.