Home Buying in North Raleigh>Question Details

Trapperjohn77, Home Buyer in North Raleigh, Raleigh...

Based on current sales prices, how much can I offer under asking price in North Raleigh?

Asked by Trapperjohn77, North Raleigh, Raleigh, NC Tue Aug 10, 2010

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Jose Rubio’s answer
I have a graph that shows the average ratio of ask/sale prices in Wake County. The average right now is about 96.5% but take into account that it is for all of Wake county and it includes short sales and foreclosures. Prior to the bubble bursting, the average was around 98%. I'll include the link to the graphs below but if you are interested, I can run the data for North Raleigh exclusive of the rest of the area. To answer your question more completely I guess I would need to know if the home is over priced or not and the financial situation of the sellers.
0 votes Thank Flag Link Thu Aug 19, 2010
The statistics in this market indicate that a seller can get 97% of asking price in our market if their home is priced correctly. If the seller has to reduce their price, on average, they get 88% of list price.

The real estate market here is very strong. Inventory is down 23% and sales are up 20%. That means that if you want to low ball a seller you will most likely lose out on that home or not have your offer accepted.
0 votes Thank Flag Link Sun Feb 3, 2013
An agent should be an informed advisor with the heart of a teacher. If you feel you are getting anything less and that your expectations are not being met, you should have a discussion with his broker in charge. If this is a home you are truly interested in, your agent should have already prepared you to make an offer that you are comfortable with and outlined the range in which you would be comfortable proceeding, should you receive a counter-offer or a competing offer be extended by another buyer.
0 votes Thank Flag Link Tue Aug 10, 2010
Thank you all for the responses. I would like to add that I am not reluctant to take the advice of my agent. It is more that my agent seems hesitant to make a recommendation. He keeps asking questions about what we think the property is worth and what we willing to pay. We want to know his opinion based on experience and the current market. My hope was that I could get some advice from agents active in the area, but I recognize that there are limitations due to all variables.
0 votes Thank Flag Link Tue Aug 10, 2010
If you have an agent but you're reluctant to take their professional advice, make your offer based upon what you feel is reasonable. The seller will decide the price that the home will sell for. Your only risk is that another buyer offers what the seller determines to be a more reasonable price in the meantime. If you're looking at sales prices, understand that making the proper adjustments for home/lot features and seller paid closing costs are best made by an experienced trusted advisor who knows the trends in the neighborhood and can effectively communicate those to you.
0 votes Thank Flag Link Tue Aug 10, 2010
Six percent below list price seems fairly normal in this market, but it really does depend on the neighborhood, supply and demand, and several other factors. Several years ago, the average sales price was about 98-99% of asking price, but these days it does seem to be closer to 96% and lower. Any offer is the start of a conversation. It also depends on the seller. Some sellers are ready to sell no matter what while others can be stubborn and demand to get a certain amount out of the house regardless of what the market is telling them. Submitting an offer will start to the conversation. You'll get a response that will tell you what you're dealing with and you'll have a good idea for where could come to agreement. The appraisal will ensure that you aren't overpaying for the house. Good luck!
0 votes Thank Flag Link Tue Aug 10, 2010
Hello Anna and thank you for your thoughts. I didn't think there were cut and dry answers there are so many variables with a house. Very little has sold that is "comparable" in the last 7 months in the area I am looking in. The range of sold prices is also very broad spanning nearly $200k for the area. Most of what is on the market has been there for 5 months or longer (a couple for a year). Even though movement is slow it doesn't seem like list prices have shifted very much. My agent seems unsure of how to guide us and I am only willing to pay a price that is fair for today's market not the market that existed 3 years ago. I am considering targeting a final sales price of 6% below list price. This amount would also include closing cost assistance. The price has already been reduced $20k.
0 votes Thank Flag Link Tue Aug 10, 2010
There are no set standards as to how much less to offer--you need to review recently sold similar properties in the immediate area, review the data and make your determination as to a fair offer--is the property priced on target for today's market or slightly below--if so, multiple offers may occur--you agent can best advise as it relates to your specific situation.
0 votes Thank Flag Link Tue Aug 10, 2010
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