Home Buying in Columbus>Question Details

movinalong12, Home Seller in Columbus, OH

Agents have said my home should be listed at 300K.....not at our 350K price! I see MANY comparables in 350K range? Are they trying to lowball me?

Asked by movinalong12, Columbus, OH Thu Sep 19, 2013

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Movin in Columbus,
You stated 'agents' not 'my agent.' Why would 'agents' not involved in the sale of your home 'low ball"?
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You do not mention that you actuallly receive a purchase offer. Ablsolute silence (no offers) is the environment in which an overpriced home exists. The absense of pruchase offers CONFIRMS the assessement of those agents.
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Invaribly, when I sit with a home owner and show them the REAL stats....show them that homeowners invaribly overpice their home by 30% at the start, then, after a season of absolute silence, realize AGENTS do not create the real estate market, but we do interpret the data and report the results...but the OWNER is the one who makes the decisons. Your decision must be such that it intercepts and attracts the buyer that fits best in your house.
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Your respone is not atypical either. Most buyers and sellers who make a bad decision seek others to blame. "Are they trying to lowball me?" If they are not presenting you a purchase offer, a lowball DOES NOT EXIST.
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Instead of soliciting opinions from strangers on the internet, you should direct your question to your real estate professional. You did hire one....RIGHT?
1 vote Thank Flag Link Fri Sep 20, 2013
I have done this before. I split the appraisal cost with the seller upfront and when I sold the house they reimbursed me my half. I would recommend you pay for an appraisal to see what your house is worth.

I agree that normally agents tell you your house is worth more to get the listing then sit down a few months later and have the price reduction talk. Never have I lowballed the value of a house so I am assuming the Realtors are pretty accurate.
1 vote Thank Flag Link Fri Sep 20, 2013
Unfortunately, with the previous downturn in the market, some homes in Central Ohio are not selling for what they were purchased for several years ago when the market peaked. Agents take into account the factors of the market in your particular area in order to determine what has sold and what that market is doing in order to sell your home to meet your needs.

There are a few things that you need to ask yourself when pricing your home for sale. What are other homes selling for in my immediate neighborhood? Are they similar in size? (+/- 5% is a good rule of thumb.) How fast do I need to move? Can I afford to have my home sit on the market? Are my updates and amenities similar to the comp homes that have sold?

But if you feel the need to be the most accurate, you can always order an appraisal for yourself. A bank may not be able to use your appraisal for financing your buyer, but it will be the most thorough opinion of value.
1 vote Thank Flag Link Fri Sep 20, 2013
The other agents you've spoken to have probably given you a pretty accurate range, especially if you've spoken to multiple agents.
An agent's commission is usually tied to a percentage of what a house sells for. It would be good for them if a house sells for more. So why would they try to low ball it?
There are a lot of factors that go into reading comparable sales. Location, size, condition, premiums, nuisances, just to name a few. Odds are, they just don't think it's going to sell for that much, and want to save you the trouble of putting your home on the market and having it sit there.
Still, another set of eyes can't hurt anything. I'd be happy to take a look for you and give you my opinion.
Feel free to let me know if you have any questions.
(614) 226-7577
abe.javadi@gmail.com
1 vote Thank Flag Link Thu Sep 19, 2013
Listing prices aren't always tied to acutal closed sale prices
1 vote Thank Flag Link Thu Sep 19, 2013
I just got a home sold that started with another agent at 280,000. We closed at 238,000 and the buyer paid 8,000 over appraised value, yes the appraisal was 230,000 and the lender questioned how high that was.
It is great that you have the data but you need to be able to analyze it properly.
1 vote Thank Flag Link Thu Sep 19, 2013
I don't know because I have not seen your home. If you are serious about selling and want another opinion give me a call. What I can tell you is that we as agents don't determine the price and neither do sellers, buyers and what they are willing to pay at that time in the market place determine the price. Real Estate is much like stocks and bonds;The market fluctuates based on supply and demand. When inventory is low prices rise. When inventory is high prices drop. We are still coming out of a period where the market dropped significantly and we are trying to recover. If you would like a free no obligation market analysis, give me a call, I would be happy to see if I can help you with answering your question face to face.
0 votes Thank Flag Link Sat Oct 5, 2013
Aren't they using the same comparables? Where did you get your comparables? Are you sure your comparables are actually comparables for YOUR house? FYI, normally if agents are competing for your listing if they are going to be wrong on the value they will exaggerate it to try and convince you that it's worth more than you think, not less. so you will list with them. I'd guess it's pretty accurate. Regardless, if you want to send me your address off-line I'll run comps for your house and give you a idea of value. I am a Buyer's Broker, so I can't list your home. Nothing for me to gain but I'd be glad to help.
0 votes Thank Flag Link Fri Sep 20, 2013
There are many variables in "comps". There would be very specific conditions and causes resulting in such a significant difference. You should have a list these variances along with the reasons for the price difference.

This is one of life's largest financial decisions, get all the facts and then check again.
0 votes Thank Flag Link Thu Sep 19, 2013
I would love to give you another opinion. I have a program that I created to save sellers thousands and realtor fees if you plan on selling and buying!! Check out my profile!!!
0 votes Thank Flag Link Thu Sep 19, 2013
Agents want to list closer to actual selling prices not other peoples pie in the sky prices.
0 votes Thank Flag Link Thu Sep 19, 2013
Hi,

I am sure the Realtors have done their due diligence and given you their best opinion. It is their fiduciary duty to do that. It is also their fiduciary duty to list your house at a price acceptable to you.

If you need my opinion on what would be the best listing price contact me, I'll be happy to look at it.

Thanks

Priyanshu (Pri)
0 votes Thank Flag Link Thu Sep 19, 2013
It's difficult, as the owner, to be truly objective. What you're calling "comparable" might not be, based on room count, location, condition or some other aspect. The agents have been inside many of those comps, and may have some insights that you're not aware of.
0 votes Thank Flag Link Thu Sep 19, 2013
Alan May, Real Estate Pro in Evanston, IL
MVP'08
Contact
They are probably not trying to lowball you, my guess is they are comparing apples to apples and have experienced appraisal issues in the past so know what to watch out for. I know nothing about your house or area, but have ordered thousands of appraisals, even the weirdest of factors can make a big difference in value. I financed two home, almost exactly the same house but located on different sides of the street, one was appraised for a lot more than the other, go figure…

Anyway, if you are absolutely sure they are wrong, have it appraised. No, you can’t use that appraisal once you find a buyer, only to document your value and maybe as a sales tool.

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.
Web Reference: http://jamessimms.com/
0 votes Thank Flag Link Thu Sep 19, 2013
Buyers shop by comparison and will form an opinion of value for your home based on these comparables. When you suggest agents have indicated your home should be listed at $300,000 I assume these are agents that have shown your home to their buyers. If these agents are showing your home to their buyers it's very likely that they've also shown the homes you're referring to as comparables and are estimating your homes probable sales price based on how your home stacks up against these properties. I would strongly encourage you to visit some of these homes the next time there's an open house. That said, if multiple agents are estimating your homes value at $300,000, you'll want to adjust your list price to bring it more in line with this valuation as in most instances it is the agent that is going to advise their client as to a home's estimate value. If your homes is getting good activity but no offers you've overpriced the home.
Flag Thu Sep 19, 2013
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