The odds are as time goes forward that your home value could drop. There are another 5M homes that are 90 days delinquent in their payments. The housing tax credit is going to expire for good. (both facts taken from the housing secretary's recent speech this week).
All these things add up to - sell now - and if you have a reasonable offer - take it. I don't know how off $11K is from homes selling now in Branford vs your asking price. But I can tell you that any comparable sales you are seeing - are old. Old in the sense that if a property "closed" yesterday, that contract price was likely from January - so you need to discount further from the closed amounts to determine your home's potential "value" but as Anna pointed out - your home is only worth what someone is willing to pay for it.
However, in real estate, the appraisal - by the Bank - holds the most water. Your home has to appraise for the amount being offered or your buyer won't be able to get financing. So even if they want to pay more - the bank would require a larger DP to make up for the difference of their appraisal. Best of luck. - PC
Your best bet is to work with what you have - remembering that it is not where you begin, but where you end that matters. Anna's point is spot on - the value of your home is what a ready willing and able buyer will pay. And as pointed out, need or want does not constitute value.
I would reflect on how the offer you are negotiating compares to the pricing expectations from the market comps. If it is the range of what the comparables suggest, you should try to make it work. Remember that you will face the appraiser shortly - and an overpriced deal may well fall apart then.
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There is the theory that a bird in the hand is worth 2 in the bush. That is true even if the bird in your hand is a bit scrawny. If you wait you might get a higher price. If you wait you might not get another offer.
Below is a house price prediction site. It does not list your exact area but look at what it says and see if you think it makes sense and if the things it mentions should affect your area also.
Still ailing from the fallout of Wall Street blunders and troubled hedge funds, the Connecticut housing market is trying to get out of its slump. Even as home sales improve in much of the state the errors of the few impact the many.
In the end what it comes down to is your desire to get rid of this house as opposed to your desire to gain a higher price. Perhaps in 3 days you will get an offer $20k higher. Perhaps in 18 months you do not get another offer.
Do you want to risk not having a sale happen hoping for a higher price?
Do you wish to sell the house and just get away from it?
Whichever one you answer the most strongly is the one you should go with. Each way has different problems attached and each has a risk of loss.
In San Antonio, where it was in the high 70's today with blue skies and where the trees are in bloom everywhere, Fresh Merchandise usually gets a higher price. As Robin pointed out, "the first offer is usually the best." That's because the house is new on the market, no one is wondering, "Why hasn't it sold?" or "What's wrong with it?" as they do if a home has been on the market for "a while".
Add to that, the Tax Credits are going away, so your Buyer has a strong incentive to act now (and maybe so do you if you are eligible for the Move-up (or Down) Credit. Many of us think interest rates may be headed upward, since the Fed isn't buying any more Mortgage Backed Securities. If that happens, you home will get less affordable than it is right now. Each 1/2% rise in rates has just about the same effect on payments as a 6% price increase in the home.
Look at the whole picture - including the home you are planning to buy. Maybe right now, your mortgage rates will also be lower than in a month or so, and it's very possible in most markets that the price on a move-up home might be even a little softer than in your price range. So, if you don't get every dime you want out of your home,but you save several thousands more on the home you buy, that was a great trade.
Ask your REALTOR to walk you through the "round-trip" scenario, play the "what-ifs", and then take your best shot. Jeanne said it right: "None of us has a Crystal Ball". If we did, the market place wouldn't be nearly as much fun.
Doc Stephens, REALTORÂ®
Keller Williams Realty
10999 IH-10 West, Suite 175
San Antonio, TX 78230
(210) 696-9996, ext 409
Tough choice to make. Have you decided which way to go yet?
For what it's worth the average DOM according to AOL Real Estate for Branford is 139 days.
Also, what percentage of asking does 11k represent? Obviously if it's a seven figure house, it's an amount that's not near as significant as what it would be for a 200k house.
I have to tell you I am not in your area however, I would personally work with an offer if you have one. Have you talked with your agent regarding countering back and meeting in the middle. I have had a lower the asking price for all my recently solds. I call the agent after I talk with my sellers, most all of which want more, especially knowing more concessions could come up in inspections, and we counter. I get a good feel from the buyers agent what their client is willing to do, or can do financially. You need to keep in mind buyers move quickly to another property if there isn't a sincere response from the seller. In this market though, I would definetly do what I could as the seller to work with an offer that's already on the table. Also too, it's not a bad idea to have your agent contact the lender and see how strong this buyer is in their eyes.
Good luck and congratulations on the offer!