Home Buying in 30809>Question Details

Piney22, Home Owner in Bettendorf, IA

Advice for a volatile and confusing market.

Asked by Piney22, Bettendorf, IA Sat Nov 24, 2012

I am trying to buy a home in what I would describe as a volatile and confusing market. Prices seem to vary wildly between comparable properties with many foreclosures and homes that have been listed for 2 years thrown into the mix. A home that I am going to try to put in an offer for is listed at 290k and tax assessed at 270k. Given my concern about market volatility I paid an assessor to come assess it on my second visit to help me make an offer. The assessment came out to be 253k with equal weighting between four comparables that were between 235k and 265k that have sold in the last 6 months. What should I offer?

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The area that you are trying to purchase in can makea big difference, as the exact condition of the market varies from place to place. For example, in the Augusta/Evans area, we don't have a large amount of foreclosures, but we have large amounts of moderately priced new construction. I would agree with Lee, that you may want to seek the help of a Realtor in the area you are purchasing, even if the home is a for sale by owner, often the seller will agree to work with a Realtor if the buyer requests it. The bottom line is that you should offer what you think is fair based on the appraisal you had done and keep in mind that the tax value has little to do with the market value. The tax value is the amount the county will assess your taxes on and you will definitely want it tb be assessed for less than 290k, even if you pay that much as it will save you on your annual tax bill. Again, I would suggest you seek some help, as many buyers aren't aware of all of the intricacies of purchasing a home including having inspections, asking for repairs, unforseen delays and how to handle them, etc. Best of luck to you!
0 votes Thank Flag Link Sat Nov 24, 2012
Ron's advice is thorough and spot on.

I'm guessing that you don't have a Realtor acting as your Buyer's agent. You probably should.

This market is not confusing, nor is it volatile. Not nowadays...it's a predictable and steady seller's market across most price strata and neighborhoods across Georgia...
Web Reference: Http://intowninsider.com
0 votes Thank Flag Link Sat Nov 24, 2012
Understand that the LISTING PRICE has one primary objective, to attract attention: It is not intended to be set in stone, and in many cases it is not even a good guideline toward the SELLING PRICE.
Some Sellers believe that by setting the LISTING PRICE high, they can always come down, and people will make an offer anyway: WRONG! Buyers will just bypass the property and look at houses that are within their price range. And six months from now, the Seller will slowly start lowering the PRICE, (this is called “chasing the curve”) and Buyers will be asking the question; “What’s wrong with that house?” and “Why has it been on the Market so long?”
Other Sellers set the LISTING PRICE low, to attract multiple offers. (The correct strategy.) We are asked; “Aren’t you obligated to sell at this price if someone offers it?” The answer is probably not; for that to happen, you would first have to have only one offer, and secondly, the offer would have be exactly the same, down to the smallest detail, (please discuss this with your Realtor).
Another thought; Buyer will search for potential properties by groups; for example, $400,000 to $450,000, and $250,000 to $300,000. If your house is priced at $460,000 or $310,000, the Buyers will never see it. (something else to discuss with your Agent.)
Different Banks have different philosophies about pricing their properties: You cannot draw any conclusions without a good analysis.
Have your Realtor do a CMA, (Comparative Market Analysis) to help you determine your Offering Price. It is the surest way to determine the Market Value of the property.
0 votes Thank Flag Link Sat Nov 24, 2012
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