Home Buying in Fremont>Question Details

Shiva, Home Buyer in Fremont, CA

Advice on offer price for Ardenwood town house with 1140 Sq.ft

Asked by Shiva, Fremont, CA Fri Nov 9, 2012

How do you see the best offer price in this current market for this new Ardenwood listed home at $400K at address - 34589 Pueblo Ter Fremont, CA 94555

Can you please provide your comments.

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LISTING PRICE
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.
1 vote Thank Flag Link Fri Nov 9, 2012
I see a recent closing on Pueblo; listed at $380K sold for 375K and closed: 7/31/2012 (same floor plan)

Two recent sales on Tacoma (nearby) with 3 bedrooms closed at: 440K & 415K (1,250sq.ft.)

Two other 2 bedrooms -- 1,069sq.ft. closed at $335,000 & pending at 385,000 (1,100sq.ft.)

As you can see the sales are high and low, but Pueblo Terr. is the only one available and you want it. then you will have to decide on the price. Of course, you should have your agent keep in contact with the sellers agent for updates.

hope that helped,
Brian
1 vote Thank Flag Link Fri Nov 9, 2012
Hi Shiva,

They were presenting offers on this property yesterday and they were expecting multiple offers so I am sure it will be pending soon most likey with an over the asking price offer.

This is a very challenging market. Inventory is low and there are many buyers looking for a home.
It really is a sellers market. Ardenwood is a very desirable area since the schools are good, and it is close to Dumbarton Bridge if you work in the Peninsula.

You can do the comps and analyze the asking and offer price all day long, but at the end of the day the buyer that is willing to pay that price or more, gets the house.There are some really aggressive buyers out there who are paying all cash in this range.

Talk to your agent and discuss how you can write an offer and come out the winner - who can have an offer that is the best in terms and price to be the winner of that house.

Hope this helps.

Meena Gujral
Achievers Realty
925-425-9491
http://www.helpusellachievers.com
0 votes Thank Flag Link Wed Nov 14, 2012
The subject property sold about a year and a half ago for $370,000. The market has moved up since then. This property has only been just come on the market. You will not be the only one interested in the property. If you want it, talk to your agent about writing the best offer that you possible can or else you will not have a chance.

It is that kind of a market!
0 votes Thank Flag Link Fri Nov 9, 2012
Hi Shiva :

There is more to offer price besides the comparables. If you really want to close the deal and move in to a house, you should have an agent represent your interest and articulate the value of the house depending on various other factors and market dynamics. The days of looking at comparables sales only and coming up with a number is all gone. If the house is priced right, they you are looking at competing with multiple offers with different levels of financial strengths
0 votes Thank Flag Link Fri Nov 9, 2012
Most of the homes sold in that area are selling for higher than asking price.In this crazy market, you need to be aggressive in your offer.usually each homes selling has more than 10 to 20 offers and some are cash buyers so that makes very challenging for first time home buyers and agents.Work with your agent and hope this helps you.
0 votes Thank Flag Link Fri Nov 9, 2012
Yup, Zillow gives you a good rough estimate, and with a capital R! ;).

In the end, it comes down to motivation, and scarcity. Even though current comps indicate the home should sell for less than the list price; there are simply no other comparable homes on the market in Ardenwood.

When there is plenty of supply, prices go down. When there is limited supply, prices go up!

Then there is your own particular motivation.
Are you buying to live in it yourself? buying for investment?

The cheap money factor: Interest rates are at historical lows. This factor alone is pulling many buyers into the market. Family who have been renting for years now find that a home mortgage payment is quite comparable (and in some cases lower) than a rent payment!

Right now, all of these factors point to a market that favors increasing prices.

I highly recommend that you discuss these issues with your real estate agent to craft together an offer that reflects your motivation for buying.

Good luck! It's an exciting to buy a home! :)
0 votes Thank Flag Link Fri Nov 9, 2012
Thank you for responses. I really appreciate it.

Sarah,

Zillow estimate thought that it comes with CMA analysis in the neighborhood but it is not that way to be reality. Home owners can claim their home and can write their estimate price and Zillow estimates shows up as Zestimate which is totally wrong and misleading to buyers. Sellers can write what ever they want on their home price. Buyers can't just go with Zestimate but has to look at comps for the last 6 months to 1 year.
0 votes Thank Flag Link Fri Nov 9, 2012
Ardenwood Area is on the border of Fremont and Newark and is a desirable neighborhood.

Most buyer will look at Zillow’s estimated price remember that these prices are very generic and data are generated with what is reported publicly, I can see that this price is on a low end.

If you are working with an agent they should be able to advice you what price you will need to be able to get the house that you want because Real Estate Sales Agents have much more information about the listing.

Since you are very specific about the address, if you put an offer for $400,000 with a conventional loan is probably not a good deal.
0 votes Thank Flag Link Fri Nov 9, 2012
Hi Shiva, considering the current market in Ardenwood, homes are being sold fast with multiple offers.
I would try to get the current Market Value (your realtor can do that for you) and go from there.

All seller's are different , some want a fast close and yet others will go for max price etc...

Ask your realtor to talk to the selling agent and get a feel as to what the seller is looking for.

Good Luck!
0 votes Thank Flag Link Fri Nov 9, 2012
In order to determine a fair offer, review comps with your agent, recently sold similar properties in the immediate area, see what the data suggests and go from there....keep in mind that if a property is priced on target, or slightly below, multiple offers may occur.
0 votes Thank Flag Link Fri Nov 9, 2012
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