Home Buying in New Jersey>Question Details

Paul, Home Buyer in Plainsboro, NJ

What is the difference between the listing price, sales price and average price. When a house is put on?

Asked by Paul, Plainsboro, NJ Sun Jan 27, 2008

sale, at what percentage is it raised from the market price by the agent to get a good deal. I need to know so that I could make an offer which is fair. Thanks

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BEST ANSWER
Hi Paul,

Here's my advice. Pretty much ignore the list price. Have your buyers agent show you all the closed sales of similar homes over the past 6 months. That's what you want to pay at most. Then, have your agent show you price trends in the town you are looking over the past 6 months. Then adjust your offering price accordingly. A good agent lists the home within 1-3% of the price he or she expects the home to sell at, and bases it on closed sales. You should do the same in coming up with your offer.

However many agents simply list the home at whatever the owner wants to list it at. Bad policy, but very prevalent since there is such strong competition between agents to get listings. The result is overpriced listings. That is why I'm am advocating that you base your offer on what makes sense to you after you review the recent closed sales. They represent the true market value. A list price is nothing more than this question: "Will someone please give me this much for my house?". Your answer should be: I'll give you this much, because other people are giving this much for homes that are similar to yours.

Good luck with your home purchase!

-Marc
Web Reference: http://www.marcpaolella.com
2 votes Thank Flag Link Sun Jan 27, 2008
Hi Paul, the list price may be inaccurate because of an owners expectations. Your agent should compare homes that have sold within the last 6 months that are similar to the one you want to purchase and in locations that are also comparable. Keeping in mind the current market trend, compare what has sold within the last 6 months and get an average sold price from that. And as Janet so accurately stated the conditions of the sale can determine the outcome, a cash sale and no contingencies can lower your bid considerably.

Wishing you good hunting!

Valerie Brown/Realtor Associate (ASP) (CVMP)
Crossroads Realty/Lacey
133 Rt. 9 S, Forked River, N.J.
Cell 908-910-4424 e-mail vbrown@crossroadsrealtynj.com
1 vote Thank Flag Link Tue Jan 29, 2008
The listing price can be a number the seller thinks his house is worth and not an accurate number. Your agent should search inventory that has closed within the last 6 months, that is similar to the home you want to purchase. Always keeping the current trend of the market in mind. You know the saying location location, well it does really matter. Research the sold prices of homes that RECENTLY closed similar to the home and Location you desire. Compare the sold price of these homes and you should come up with an average price they sold for. And as Janet so accurately said the offer can be determined on the conditions of the sale, offering cash, a quick closing and no contingencies.

If I can be of any assistance please call me at 908-910-4424
or e-mail me at vbrown@crossroadsrealtynj.com

Thank you,

Valerie Brown
Realtor Associate (ASP) (CVMP)
Crossroads Realty/Lacey Office
Forked River, New Jersey 08731
1 vote Thank Flag Link Tue Jan 29, 2008
Great answer Marc!

Yes Paul, that is the best way to gear what you will offer on your home. Just an addition to that. Remember that terms can be equally as important as price. Sometimes if a Buyer has a contingency or something negative about their offer, they will try to compensate by offering a better price. It works the other way as well. A Buyer offering cash and a quick closing can sometimes get a home for less because their terms are so desirable.

Keep that in mind as well.

P.S. I hope you are using a Realtor!! :-) Good luck to you.

Janet Levy-Minetti
Broker-Salesperson/Office Manager
Crossroads Realty/Lacey Office
JanetLevy@JanetLevy.com
Web Reference: http://www.janetlevy.com
1 vote Thank Flag Link Mon Jan 28, 2008
No problem Paul,

Happy to help.

When you are ready to buy, you will want to retain an experienced agent who is going to aggressively promote your interests. That means having your own buyers agent. One word of advice: If you see a house you like, DO NOT call the listing agent to see the house. If you do, you could fall into a dual agency. That's when the sellers agent attempts to represent you and the seller at the same time. Very bad deal for you. To avoid this, use your own agent, not the sellers agent.

This can get a little complicated, so if you have any questions about it or would like me to refer you to an aggressive buyers agent, contact me through my website.

Good luck Paul!

-Marc
Web Reference: http://www.marcpaolella.com
0 votes Thank Flag Link Tue Jan 29, 2008
Hi All,

Many thanks for the info. Has been helpful. Trulia has been great. I have not selected a realtor as yet but sniffing around, seeing houses, arranging stuff like financing and finalise a deal by April/May. thanks
0 votes Thank Flag Link Tue Jan 29, 2008
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