Reading at the scenario you have mentioned to me it seems like the agent know the local market and trend.
Northern Virginia -Fairfax & Loudoun County
Let me summarize what you have written:
1. You have an offer for $200,000 which is within the price range suggested by your Realtorâ€™s CMA.
2. An appraisal has been done which puts the value of your house at $195,000. You do not agree.
3. Feedback from other real estate professionals indicates the correct price for your house is $199,000.
4. You NEED a sale price $208,000 to have a down payment for your next house.
So here is what I think:
Buyers do not care what you need. They care what they are willing to pay. You have opinions from an appraiser and other real estate professionals that your house is not worth more than $200,000. I think that you are in denial. Of course, I do not know your market but I suspect that the likelihood of an offer higher than what you have now is iffy. You should take the offer or take your house off the market.
Your values are declining at 15% per year.
So for every month you dilly dally you loose $2,000.
I like the strategy of lowering the price to $199,000 and letting the market pick the price.
However, if you are this confused about the value of your home, and your don't believe the advice of 15 Realtors AND your Realtor, then maybe you are not really serious about selling? How does your property compare to the others that are on the market? Today, go out and look at the ten homes that buyers have to choose from. Be objective. Sounds to me as though you should take their advice.
You have an offer in hand which is much better than playing games on the market and gambling. Deal with your current offer and make sure you are comfortable with your decision. If you and this buyer cannot get together on price and terms, then maybe try the bidding war thing but I will tell you many of the buyers I work with are no longer willing to play this game. They would perfer to move on rather than compete.
Take your emotions out of this and look at the facts that you state above.
Did you see the comps that were used by the licensed appraiser to arrive at a $195k value? Are they truly comparable or are they inferior in significant ways to your house?
To "vertify" the $200k price, I would suggest you immediately lower the price to $200k and create a bidding war. Then after being at the $200k price for at least a week, you may be surprised that there are other offers that come in above your $200k price. Make sure your realtor discloses that you will accept the highest offer above $200k by a certain date.
Is the $200k offer also requiring you to pay any of the buyer's closing costs, too? This is common in this price range because many buyers have FHA financing and only have 3.5% to put down.
Also is the commission you are offering on the Realtor MLS system at least 3%? Is the $200k buyer represented by a Realtor other than your listing agent?
Hope this helps.
If I thought you should wait for a better price, I'd be the FIRST person to tell you. Take it, move on, and say, "Thank G-d I got 91% of my asking price!".
Prices continue to slide in our area of Southeast Florida. Way too much pressure downwards. You did fine, listen to Scotty Miller. Sleep well.
Scott Miller, Realty Associates, Boca Raton, FL
I personally pray about these items as
well. Best wishes friend.
P.S. You could always pay yourself for another appraisal. Determine what you say is so regarding your needs to purchasing another home and any
alternative costs you continue to face if you don't accept now.
Most decisions in life are 49% one way and 51% the other. Give yourself permission to choose and accept your choice as the best you knew how to
make at the time. Best wishes to you.
No one will convince you what to do or what decision to make. Your agent has performed gallantly and provided you choices. Now it is your turn to use your good sense and judgement.
Oh yes ! Just incase you decide not to take the offer to find out later you should of. I hope you have the capability and the decency to pay your realtor his fee he has deserved it.
This rush to judgement is an opinion of someone who has seen this example many times . With dire results and the house selling for much less in the end.
Unfortunately your first offer may be your best offer. It is never early to catch a fish. Some people fish for days and catch nothing. I hope you take your fish and enjoy it.
Clearly you agent knows what he is doing and his advise is good.
With Elections next month and then the uncertainty associated with it and Holidays approaching.
Also, from the Broker tour it was clear you should be at $199K, so you should be happy and move on.
The greater concern you should have is that the property appraises, because if it appraises below
the Offer price, either you will have to lower the price or the Buyer has to bring in the difference.
Remember, properties that are listed on Trulia or any MLS are properties that have not sold, check with
your agent on properties that have sold or gone Pending, that is more relevant to you.
I suggest that you take your Realtor's advice. They seem to know the market and have shown that they made every effort to get as many prospective buyers in your house as possible.
In this case my best advice would be to listen to your Realtor. I wish you the best of luck!
The lack of showings indicates that the home was probably overpriced when listed.
Any offer in this market is a "good offer" and you should look at it closely and try to make it work.
If you like the answer - please consider making it a "Best Answer" !
Licensed in Maryland, Virginia and Washington, D.C.
Assisting Homebuyer's and Seller's for 28 years
You should trust your agent (since you hired him) especially that he is also a licensed appraiser.
He has a knowlegde necessary to proper evaluate your house, he knows the local market and trends.
I believe you should take the offer. But you are the owner and you decide wether to a accept it, counteroffer or reject it.
If you are not willing to accept the offer on hand, then I start gradual automatic price reductions after 15 days on market and every 15 days after, first 209, then 205. Now keep in mind that if you hold on to it so long that you end up with a third reduction to 199....you will always end up with an offer for less.
I agree with your agent. Take the 200 while you can.
Charles Rutenberg Realty of Kissimmee
What you NEED has nothing to do with what the house is worth. If that is what you NEED you will have to sit it out and wait one, two, three years for inflation to kick in and give you the cash you seek. However, keep in mind the next house you want to buy will be similarly more expensive.
I know you WANT to have a higher price for you house. But ALL the feedback you have gotten shows $195K to $199K. If you got $200k, it sounds fair.
If I had a rabbit to pull out of my hat with the extra $8,000, honestly... I'd keep the money myself. Sounds like you got the market value.
Now there is one more thing you can try. Underprice the place. Price at $190,000. Solicit multiple offers. If you get multiple offers, that is the only way you can have it bid up beyond asking. In that case, maybe you will luck out and get $205K.