The Palmer Group

Hey Sellers, What Have We Always Been Saying? Listed for $1.1M+ sold for $2M

34 Wachusett Road, Wellesley MA

34 Wachusett Road, Wellesley MA

In our 30 plus years in the business we’ve always said to sellers there is really only one mistake you can make in real estate.  We tell sellers you can never under price your home and the only mistake you can really make is overpricing the home.

Most sellers tend to challenge us a little bit on this statement.  They are fearful that if they price it to low they might have to sell it at that price.  We always tell them no matter how low you price the home it will always find it’s true market value.  Buyers know and react to a  good deal when they see one and if you properly expose the home with the right marketing campaign then it is inevitable that buyers will bid the home up in price until it reaches it’s fair market value.

Over the years we’ve given sellers countless examples of where Realtor’s have successfully employed this tactic and in most cases the homes end up in a bidding war and the homes sometimes actually sell for more than market value.  This happens because of the process and the marketing tactic used.  In fact we’ve successfully employed this very technique ourselves in several situations and it has worked beautifully.  In the current market with such low inventory we are starting to see this tactic used more and more, especially in the first time home buyer market.  We were also recently involved in one of these types of deals with one of our buyer clients.

Our client a well known Wellesley builder and developer wanted to purchase a property that came on the market over in the Cliff Estates area of Wellesley.  I had actually known about the property for several years.  It was owned by an elderly woman and I had tried to orchestrate a deal for the property several times in the past.  I sold the ladies good friends $1.8M house in the Pierce Estates area of Wellesley.  The sale was very quick and quite lucrative and she had referred me to this elderly woman on Wachusett.  The owner always told me she wasn’t quite ready and she explained that she had several children that would want to be involved when the time was right.  They actually ended up hiring a family friend to market the property.  The house sits in an enclave of newer homes on a very prestigious street and it was the type of home that was either going to get an extensive renovation or it would be torn down and someone would build a brand new house on the lot.

I’m not sure the realtor at the time had much of an idea on where to actually price the home so purely by accident she priced it low with the hopes buyers would bid it up.  When it first came on the market I got countless calls from builders and from many of our high end custom home building clients.  Everyone was surprise at the asking price of $1,199,000.  I had actually sold the house right next door without it ever being on MLS to  Ken Barber of Barbers Fine Homes several years earlier for $2,150,000.  Ken was considering building a spec home on the lot but due to the softening real estate market he eventually sold the home to an end user.  The house across the street also recently sold for $4,750,000 and consisted of two lots.  It was torn down and a new house is currently being constructed.  At $1.1M+ the house on Wachusett caught everyone’s attention and before long the realtor had a high stakes bidding war erupt.  My client made an offer and we were told there were over 20 offers on the property.  My client went a couple of bidding rounds and eventually bowed out when the bidding got a little to rich.  The house originally listed at $1,199,000 recently closed at $2,000,000 even.

I’m disappointed my builder lost out but I’m happy it all worked out for the family.  She was a very nice lady and I always enjoyed talking with her.  So like we’ve always said – you can never under price your home.    Send article as PDF