Best example, true story, all around the same time in Basking Ridge in The Hamiltons in the Hills.
A beautiful townhome came on at 524k and sold first day full asking. It was priced below others. There were about 5 that were the identical model, but only it and two others in a nice location. Another was on for 549 and got 535. Very close to the first one maybe kitchen a little nicer. At third sold for 515, and was also listed at 549. It had original kitchen, less hardwood, and not as many upgrades. One is still listed, just reduced, and is beautiful inside -- however, the location does not offer any privacy, and that is holding it back.
In reviewing the sale to list, the 524 at full price was actually the best deal for the buyer. The others, with steeper discounts over list, were not the "killing" that the first was. These sales are the poster child for comps, location, and value vs asking price. Asking price was quite irrelevant, and I know that some saw the 524 home and tried todiscount it based upon not paying full price, and lost out. All occurred around the same month, late August / early September. The one in the infrerior location with every bell and whistle is still on the market.
When choosing an offer price, make sure you have comps from the last few months, you know apples to apples how they compare, and any problems with location -- you can always upgrade, but you can't move a busy road or cell tower. If the seller is motivated and one comes on that is perfect but lower than the others, grab it. If there are several on market and they are all alike, make some judgements based upon days on market and recent comps, and offer accordingly.
Good luck. If you need a realtor, just give me a call. I will refer you to someone in Morristown, and be able to help you in the Basking Ridge area. For me it is key that you are with a realtor who knows the inventory, which is why I'd rather refer you in Morristown than do it myself as I cover that area, but do not know the inventory as intimately as you should have in your best interests.
PS - re winter: between Thanksgiving and New Years demand is sluggish, so you may get a better deal, but at the same time, the inventory is slow, so unless it's the perfect home, wait until spring. I have a feeling we are going to see quite a bit come on this spring as inventory is showing that people are holding back.
SO SORRY about the way the first post from iphone came out with the spell fixer.
I wouldn't say house prices drop off in winter, per se, but there may be fewer listings once the holiday season begins. Many people who are thinking of selling their home prefer to wait until after the New Year, if they haven't already listed once mid November comes around. But, keep in mind, we sell houses all year long - so you never know when a buyer or a great new listing will pop up.
If your question is whether you will find a better bargain in the winter...I'd say there are bargains out there right now...and we have been seeing good deals all year long.
As to your other question..............
There is no set % below asking when it comes to making an offer. It really varies from home to home. A well priced home can still sell at full asking price, or even over asking if it is priced well...and today "priced well" means priced at, or slightly below market value.
Generally I am seeing homes sell within 3-5% of their listed price (after any reductions have taken place).
When you find a home you want to make an offer on, I recommend looking to your agent for advice......if there are multiple offers, your strategy will be somewhat different then if you are the only person making an offer. If a home is preceived to be overpriced, then you may go ahead and lop off a certain %, and give it a try........but also keep in mind, an overpriced home indicates a seller who either isn't motivated or doesn't want to be realistic in regard to the market.
Hope this has helped!
Prudential NJ Properties
please feel free to email me with any other question.....
Web Reference: http://www.DebbieRoseSells.com
When you look at people without jobs, those with jobs wondering how much longer they will have one, and tight credit prices should drop. Then add in the foreclosure crisis and they should drop even more.
http://www.businessinsider.com/wait-actually-existing-home-s It says--> ( and more) The tax credit effectively extended the purchase season which is why sales were even this strong. But when you consider the hundreds of billions spent to prop up the housing market, which only resulted in 34k additional sales over last September (one of the worst years on record for housing) and fewer sales YoY in CA, sales were really not that great. When organic sales go away suddenly for the season, which will happen in the near-term whether the tax credit is extended or not, it sets sales and prices up for the largest swings lower we have seen since all this began two years ago.
This is a unique time for housing prices. It is not about the economy. It is not about prices being stable or not. It is ALL about the government bribing people to buy a house. Now that the $8k bribe is dead prices will have to drop. Add in all the other factors like unemployment and lack of financing and prices only seem to be headed one way. DOWN. It is not about the weak months of the year a it could ahve been in the past. This time it is about all of the other factors kicking in and taking months or more likely years for the complete effect to be felt.
When you look at market data and see a home that sells quickly, ie, within the first 30 days close or on its asking price, it is proof that the home was priced right. These sales are particularly valuable in assessing pricing.
Sellers that hit their strike price after many price reductions learn the harsh truth - had they price right at the beginning they would have fetched more, not less, for their home. I see this play out time and again, and yet, it can be a very tough pill for a seller to swallow when it comes time to price their home.
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So you have two things going on - reduced demand and reduced supply. Generally, I tell sellers that the buyers that are in the market during this winter period are real and should be taken seriously.
When the Spring market comes, increased demand tends to buoy prices. The Spring market is the most robust time in the 12 month cycle - it runs from Jan through May, and begins to wind down as school lets out and attention shifts to vacation plans. With Spring, you tend to see more inventory and more buyers, and prices tend to strengthen.
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Exact same end unit and nice location for all three. The 524 at full price was the best dea for the buyer. The others with steeper discounts were win wins. These sales are the poster child for comps and value vs asking price. All occurred in same month.
You have to ask your agent for comparable home sales. When you find that home you want to buy, ask your agent for an abridge and an unabridge lists of comparable home sales from MLS to help suggest offer price. It really isn't a precentage for as Debbie said, it varies from home to home.
So, to answer your question: house prices do not drop per se in the winter, but there could be both fewer buyers and fewer listings on the market as a result of people wanting to buy or sell after the new year. In Union, NJ, we are experiencing a mini-boom and IF the first time home buyer tax credit is extended, we will be busy right up until the Spring season.
Audeliz Angie Perez