Home Buying in 19380>Question Details

Ad, Home Buyer in 19335

Home is quoted considerably higher than estimate and comps. Any reason for this?

Asked by Ad, 19335 Mon Jun 18, 2012

One possible reason we see is the home was bought in 2004 during the boom for 350 & now the estimate is 326 but owner has quoted 365. Comparables are around the range 300-325.

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Yes, When there are no or a low number of sales in an area the comps don't match. For example a 3 bedroom 2 bath 1000 sqft home is not in any way a comp for a 4 bedroom 3 bath 4000 sqft home.
0 votes Thank Flag Link Tue Jun 19, 2012
Thank you all for the answers! Much appreciate the help!
We may offer 320 for the home which seems reasonable.
0 votes Thank Flag Link Mon Jun 18, 2012
Without seeing the house, it is hard to know what has been done to the home. Every home is different to some extent. Simply the location can make a difference even in a development where all homes are the same design. Certainly, some of what you suggest may be the case, although 2004 was almost just before the boom, the real increase in prices in our area coming during 2006 and 2007 although prices seem to be back at 2003 levels. The seller may also not be motivated to move and is asking a price that if he gets his asking price he is happy to move, but otherwise prefers to stay where he is without the hassle and costs of selling and buying.
0 votes Thank Flag Link Mon Jun 18, 2012
If the comps justify a sales price of 300-325 then that is likely what your buyer's agent (not the listing agent) should recommend as an offer price. Just because the seller is asking a certain price means nothing. You should only pay what the recent (w/in last 6 months) suggest.

If the seller is not willing to understand the market then you should find another home where the seller understands.

Andrew Himes
0 votes Thank Flag Link Mon Jun 18, 2012
Hi Ad, you keep saying estimate and comps. From whom are you getting these figures? I ask because that matters greatly.
0 votes Thank Flag Link Mon Jun 18, 2012
I got them from different sites such as trulia,zillow etc. recently sold and estimate of the property. some of them have the same amenities as this one for e.g. walk out basement, end unit etc.
Flag Mon Jun 18, 2012
Hi Ad,

If the List Price is higher than current market value, it is probably due to the current owner not wanting to do a Short Sale. However, if buyers are going to finance, an appraisal will need to be done and that will come in at current market value - it will not come in at what the current owner owes (unless of course what they owe and current market value are the same). As long as the buyer isn't using VA financing, they can pay the difference in cash between appraised value and purchase/list price if they want to though that might not be in their best interest since they would have negative equity right from the start.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Mon Jun 18, 2012
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