Home Selling in 33442>Question Details

Anxious Home…, Home Seller in 33442

After 17 Days on Market and 2 Open Houses I have had only 1 call and 2 showings that resulted into an final offer of 91% of asking. Should I take it?

Asked by Anxious Home Seller, 33442 Sun Oct 17, 2010

I put my home on the market on Oct 1st, had two open houses and 2 showings accompanied with buyers agents, one showing resulted from the open house; another from a call from a buyers agent that resulted into a final and best price of $200,000 ( after 3 rounds) on a $219,000 asking. My Realtor has strongly urged me to take this offer as he says it will probably be the highest and best; based on his experience, the number of showings and our local market. His CMA price range was from $197,000 $215,000. Most likely a $208,000 selling price. I need $208,000 price to move on for a down payment my next property. My agent has also held a brokers open and had 15 visiting brokers and the feedback was change the price to $199,000 ( which I just think is just to early in the process). My agent also had a licensed appraisal service do a home appraisal resulting in $195,000 which I do not agree with. I have been checking properties on Trulia and think it is worth more , should I take the offer?

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Answers

27
The decision to accept or reject is for you to make--however, do keep in mind that a home is worth what someone is willing to pay for it, not what the seller needs, or potential buyer can afford to spend--market do matter........you decide.
2 votes Thank Flag Link Sun Oct 17, 2010
I think that $200K is a decent offer. You mentioned something important and that is that an appraiser had estimated it at $195K which brings me to the next point. If the buyer is financing the purchase, when an appraisal is done, if it comes in at say $195K or lower, that is what the buyer's lender will base the loan off and not $200K. If that happens, either the price will need to be adjusted down to %195K or lower, or the buyer will have to come up with $5K or more extra to cover the shortfall. If it is a cash offer then it would not be an issue unless the buyer still pays for an appraisal. In tat case it depends on how the contract is written. Talk to your agent to address this situation in the contract if at all possible.
2 votes Thank Flag Link Sun Oct 17, 2010
If you do decide to accept the offer at a higher price you need to consider will it appraisal for that sales price? Buyer's bank will loan the amount as per their appraiser value.

Reading at the scenario you have mentioned to me it seems like the agent know the local market and trend.

Good Luck
Ritu Desai
Associate Broker
Samson Properties
Northern Virginia -Fairfax & Loudoun County
Web Reference: http://www.eNOVAhomes.com
2 votes Thank Flag Link Sun Oct 17, 2010
Anxious,
Let me summarize what you have written:
1. You have an offer for $200,000 which is within the price range suggested by your Realtor’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.
1 vote Thank Flag Link Sun Oct 17, 2010
Look at the link below.
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.
1 vote Thank Flag Link Sun Oct 17, 2010
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
Dear Anxious,

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.
1 vote Thank Flag Link Sun Oct 17, 2010
Appraisals are subjective. Unfortunately there are some appraisers that work hand-in-hand with listing agents that will come in with a lowball appraisal to ensure a quick and easy sale. This may or may not be the case with your appraisal.

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.

Alma
1 vote Thank Flag Link Sun Oct 17, 2010
Hi Anxious. TAKE THE OFFER. According to your zip code, you're located in Deerfield Beach. I'm in Boca Raton. I'm giving you firsthand, local advice. ACCEPT the offer, it's fine. Don't hold out. The market is way too shaky and uncertain to hold out for a few thousand dollars.

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.

GOOD LUCK.

Scott Miller, Realty Associates, Boca Raton, FL
1 vote Thank Flag Link Sun Oct 17, 2010
Take the money and run. IF the house appriases. It appears it is not going to. Get ready for some renegotiating. No one wants to buy a depreciating asset that has already depreciated below their purchase price. And the owner is the last person who is going to be a good judge of what their home is worth.
1 vote Thank Flag Link Sun Oct 17, 2010
Since you have not declined the offer, just accept it. It is not too bad.
0 votes Thank Flag Link Thu Mar 24, 2011
I would suggest you trust your agent and all the facts provided to you. I would also be asking the type of funding the buyer has and how/if you will be effected by the appraisal being lower than the sale price. Good Luck on your home sale!
0 votes Thank Flag Link Wed Mar 23, 2011
Remember why you hired a professional in the first place. Ask a local appraiser about it too if you like. Many local markets might be happy to get what you have so quickly; a Buyer in hand and not in the bush. LOL
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.
0 votes Thank Flag Link Wed Oct 20, 2010
Seller,
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.


Good Luck,
0 votes Thank Flag Link Wed Oct 20, 2010
I'll offer you 165,00 in 2 months [maybe], have a good day.
0 votes Thank Flag Link Mon Oct 18, 2010
You have all the information needed to make a decision. The that the CMA came out 197K and 219K does not mean that the selling price should be in the middle. It means any offer from $197,000.00 and $215,000.00 will good. You should take this offer and move on.
0 votes Thank Flag Link Mon Oct 18, 2010
17 days on the market and you got an offer! In this market? Time for a reality check. You want to wait around for another 4%? How many months or years are you willing to wait? What you need has NOTHING to do with what a buyer is willing to pay. TAKE THE MONEY and be happy you sold the place.
0 votes Thank Flag Link Sun Oct 17, 2010
Not knowing your particular market, but knowing real estate and trends in real estate, I would have to agree with the other posts below and suggest you take the offer. It is clear to me that several experts (your Realtor, the buyer's Realtor, and even an appraiser) have shared their opinion on the price and all three seem to be within the same price range. As sellers, we always think our home is worth more than it is, but market value is market value. Three experts have weighed in and they seem to be inline with the market value for your area. Again, I would suggest taking the offer. For a home to have an offer after 17 days in any market is a wonderful thing and is not always common, believe me. I wish you the best.
Web Reference: http://www.JasonPeebles.com
0 votes Thank Flag Link Sun Oct 17, 2010
I also would advise you to take the offer. It seems like a reasonable offer. There is no magic formula says your house worth this much. What ever they are willing to pay and whatever you can accept is the price of the house. Indicators does not show house values going up soon, so what is your point for not accepting this offer or countering their offer back?

Goood luck.

Sedat Celik

http://www.easternbroward.com
htttp://www.fortlauderdalecoastalhome.com
0 votes Thank Flag Link Sun Oct 17, 2010
Also with the recent withdrawal and halt on foreclosures for many lenders, this may lower the supply of available homes so we may see a short term blip to the upside in home prices in Florida.
0 votes Thank Flag Link Sun Oct 17, 2010
Hi Anxious Home Seller:

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.

Good luck.
Perry
0 votes Thank Flag Link Sun Oct 17, 2010
Most people think that there house is worth more than may actually be the case. Unfortunately, the only one whose opinion counts is the Appraiser. They will send their report to the lender and based on that Appraisal, the lender will lend the money to the buyer. Unless you get a cash offer, the Appraisal will ultimately determine how much you can sell your house for. In today's market most people will be obtaining financing, and in reality the market determines the price, not anyone else. Even if the buyer was willing to pay more, the bank will not lend them the money unless the house appraises at sale price.

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!
0 votes Thank Flag Link Sun Oct 17, 2010
You should at least seriously consider it.

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.

Good Luck!

If you like the answer - please consider making it a "Best Answer" !

Gerard Dunn
Associate Broker
Licensed in Maryland, Virginia and Washington, D.C.

Assisting Homebuyer's and Seller's for 28 years
703-216-9100
0 votes Thank Flag Link Sun Oct 17, 2010
The first offer on a home is usually the best offer. Everything you state above screams you are getting fair market value. Sounds like you and your agent did an excellent job of getting them up to 200k. I know when I do a market analysis my bottom price is usually the more accurate. We are in a declining market! Good luck with your decision
0 votes Thank Flag Link Sun Oct 17, 2010
Only you know what you need to sell your house for to move on, the rule of thumb is a house is only worth whta a buyer is willing to pay for it. If you only have 1 offer work with that buyer, try a counter offer to get the price in teh middle of what you were asking what they offered. Ask why the offered what they did, what did they base thir offer on, take everything into consideration and accept it or counter it, but dont just decline it.
0 votes Thank Flag Link Sun Oct 17, 2010
It is a sad truth but most of the sellers believe that their house is worth more than in reality is.
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.
Good luck!
0 votes Thank Flag Link Sun Oct 17, 2010
If the home appraised for $195K that is all a bank would fund to any prospective buyer. Are you willing to sit down and wait for a cash buyer? Are you aware that cash buyers always think they can get bottom price because it is cash?

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.

Tony Vega
Charles Rutenberg Realty of Kissimmee

http://www.SearchKissimmeeHomes.com
0 votes Thank Flag Link Sun Oct 17, 2010
Anxious, it's not a "too early" issue -- it's a "market value" issue. You should ALWAYS be at market. Most people can't stand this idea and price too high, hoping to drop price later. It's probably why you had so few showings.

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.
0 votes Thank Flag Link Sun Oct 17, 2010
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