Home Buying in Alpine>Question Details

J9, Home Buyer in Alpine, CA

Should an offer be closer to the Assesment or to the asking price?

Asked by J9, Alpine, CA Sat Feb 9, 2013

what is the relationship between the assesment and the asking price? Sometimes the Assesment is a lot lower than the asking price or the other way around.

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BEST ANSWER
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.
1 vote Thank Flag Link Sat Feb 9, 2013
In California the assessed price is based on the original purchase and does not have a relationship to the current market conditions. If you are working with a Realtor they should prepare a comparative market analysis for you . That is what you should base your offer on.
1 vote Thank Flag Link Sat Feb 9, 2013
Hi J9,

The offer should be based on current market value - not on assessed value or list price. Have your Realtor do a Comparative Market Analysis (CMA) on the property (before submitting your offer) using SOLD comps within a 1 mile radius of the property (the closer, the better) that have SOLD within the last 3-6 months. This will give you current market value.

Good luck.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
1 vote Thank Flag Link Sat Feb 9, 2013
You need a Buyer's Agent to assist you. The property may sell for a market price that is not near the assessment or the asking price. Your Buyer's Agent will prepare a CMA (Comparative Market Analysis) for you, and use other softwars to determine a good offer price for you. The Buyer's Agent represents your interests only, but his/her commission is paid by the Seller.
1 vote Thank Flag Link Sat Feb 9, 2013
On Long Island, assesment is normally for property tax purposes and asking price is normally for market value.
1 vote Thank Flag Link Sat Feb 9, 2013
Honestly, it depends on how the home is priced relative to the market. San Diego as a whole has had low inventory and homes are selling high...I'm not as familiar with the Alpine numbers....

If you send me an address, I will run the comps for you make some suggestions..

Cindy (619) 379-8616
1 vote Thank Flag Link Sat Feb 9, 2013
Hi J9,
I think the answers below are really great. Alpine can be a bit tricky since there is a lot of homes with land and other assets, but I would be happy to assist you in determining what a home is worth. I lived in Alpine for several years, it is wonderful, so I know the area well. Feel free to contact me to assist you.

Thanks!
Sinead McAllister
Broker
McAllister Homes Real Estate
858-205-5215
brokermcallister@gmail.com
http://www.McAllisterHomes.com
0 votes Thank Flag Link Tue Feb 12, 2013
Your asking price should be based on the comps and the market, never the assessment, and sometimes not even the listing price. What you need to understand any time you buy real estate is THE MARKET. The market right now is very much a seller's market, and most listings are getting many, many offers. If you offer the list price, you'll probably be outbid, unless it's listed too high for the comps, taking the very high demand into account (which appraisers will).
0 votes Thank Flag Link Sat Feb 9, 2013
Please find a real agent to help you. Navigating this market by yourself makes as much sense as a halibut swimming in the Mojave Desert. Your asking this question painfully shows you are no where near able to make an offer on a property. Get educated with a real agent first, and let him or her work to find you a home to buy. You might want to start by contacting a real lender to see if you even qualify.
0 votes Thank Flag Link Sat Feb 9, 2013
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