Home Buying in 92007>Question Details

Stephan, Home Buyer in San Francisco, CA

How do I know if I should offer more or less than the listing price in 92007?

Asked by Stephan, San Francisco, CA Mon Apr 23, 2007

Is there a difference if I'm looking for a single family home versus a condo, or some other type of property?

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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.
0 votes Thank Flag Link Wed Jun 13, 2012
The markets are certainly showing signs of movement in an upward direction. Perhaps not evident in listing prices universally, but more buyers in the market, more competition for properties, and more incidences of properties selling for over asking. I reel that market value as relates to other sold properties are most relevant. Keeping that in mind, the supply/demand effect will generally play a significant role determining where you might start in your negotiation.

http://www.own-sd.com
0 votes Thank Flag Link Wed Jun 13, 2012
Make sure that you have looked at the most recent comparable sales list surrounding the home you are considering purchasing. List prices vary across the board, so pay attention to the market value, not the list price. One should use the same concept on a home vs. condo. Except with a home, one must pay more attention the comparable lot locations, sizes, shapes, and usability.
0 votes Thank Flag Link Mon Apr 23, 2007
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