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A majority, or even a large minority, of sales cannot be above market price, by definition. If there are enough cash buyers that it's being difficult to buy at
by freeone3000 5y ago
A majority, or even a large minority, of sales cannot be above market price, by definition. If there are enough cash buyers that it's being difficult to buy at a given price, the market price is clearly somewhere above it.
- WarOnPrivacy 5y agoYou seem to be leveraging specific terminology in order to obscure the larger point - that buyers & renters are making substantially higher offers than homeowners are looking for. It is unclear how that helps move this discussion along.
- robotresearcher 5y agoYou said ‘market price’ but you meant ‘asking price’ (UK) or ‘list price’ (US).
- jandrewrogers 5y agoIn volatile markets, sellers often set the initial price well below their reserve price to attract a bidding war. This forces buyers to make their own determination of market value rather than anchoring to the list price. You most commonly see this in markets where there is a lot of price volatility or supply constraints such that it is difficult to determine a priori what a fair market price is, which describes a lot of markets these days. Most buyers know this and bid their estimate of the fair market price, which may be well above list and hopefully the reserve price. This is a sensible strategy when the seller has no idea what a reasonable price actually is but there is a large number of buyers.