Home Buying in 11550>Question Details

Son, Home Buyer in 11550

THERES A HOUSE THAT WAS FOR SALE AT 179,000 IN APRIL 2010 AND NOW THEY ARE SELLING IT FOR 260,000 AND THEY BROUGHT THE HOUSE FOR 150,000

Asked by Son, 11550 Tue Sep 21, 2010

MY ASKING PRICE IS 240,000 IS THIS REASONABLE

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5
Son -

Depends on what you're comparing it to. Sounds like you need a local Realtor to visit and go over how to compare homes so you get a better idea of what the value is.
0 votes Thank Flag Link Wed Sep 22, 2010
I'm guessing a rehabber bought the home for $150,000 and is now listing it for $260,000. You want to offer $240,000, and wonder if it's reasonable. Right?

It really doesn't matter what the rehabber bought it for. And--really--it doesn't matter what it's listed for. What matters is what the home is worth. It may be worth $270,000, in which case $260,000 is a real bargain. It might be worth $235,000, in which case you'd be overpaying. There's no way to tell from the listing price.

You probably just kind of picked a number out of the air. (I apologize if I'm incorrect.) As noted above, that could result in you overpaying. More likely, though, it could result in you not getting the home.

Here's what you do. Find a Realtor you trust. Not the listing agent. Ask your Realtor to run the comps. To prepare a CMA (comparative market analysis) on the home. That's to figure out what the house is actually worth. Then pay no more than that. Perhaps offer less. Your Realtor can provide advice on that.

One other observation: Many rehabbers I know deliberately price their homes a bit under the market so they'll sell quickly. I'm not saying this is the case with the home you're interested in, but with a similar scenario (rehabber buys it for $150,000, rehabs it, and puts it on the market for $260,000), the house actually could be worth $270,000-$280,000. Why? The rehabber wants a quick sale and wants to make sure it appraises for what the contract price is. And the rehabber is making plenty of money at $260,000. Again, that may or may not be the case with your house.

So, get a Realtor to run the comps. Then, based on the comps, make an offer.

Hope that helps.
0 votes Thank Flag Link Tue Sep 21, 2010
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
Contact
I'm not clear if you are the buyer or seller from your question. Assuming you are selling the property, ask your Broker to do a market analysis. If you are selling the property on your own (For Sale By Owner) and not working with a Broker, contact me and I will be happy to provide you with a Comparative Market Analysis at no cost.

Joseph Brown
Century 21 American Homes
(516) 297-3146
JoeBrown@verizon.net
0 votes Thank Flag Link Tue Sep 21, 2010
As for the property purchased for $150,000--was the home, remodeled, updated, etc., if so, a possible reason for listing at $260,000--as for your property listed at $240,000--in order to determine a fair value, one needs to be aware of recently sold similar properties in the immediate area--after reviewing the data a determination on price can be made; if your pricing needs adjusting, do so accordingly in order to be more competitive--in today's market, pricing and marketing that maximizes your exposure are paramount--what is your agent advising--do keep in mind that a property is worth what someone is willing to pay for it, not what the seller needs or potential buyer can afford to spend, however, market conditions do matter.
0 votes Thank Flag Link Tue Sep 21, 2010
Son - you need to select real estate professional to act as your buyer's agent. Ask them to research the market and do the analysis and help you so that you can make the best offer on the home you want. I do this for my clients and they have yet to complain about my services or the price. We are here to help you but you do need to contact a real estate professional to represent you. We are almost always paid by the marketing money from the seller so it is not a cost to you for us to work for you. If you have trouble finding someone let me know but there should be lots here that would welcome the opportunity to work for you!

Hope this helps,
Deborah Rigsbee Miller, Real Estate Broker
Coldwell Banker HPW - Durham, NC
0 votes Thank Flag Link Tue Sep 21, 2010
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