Mindy, Home Seller in Staten Island, NY

How do you price your home when no buyer wants to pay asking price and you want to list at market price? How much cushion should u build into price?

Asked by Mindy, Staten Island, NY Sat Oct 19, 2013

Seems no matter how good the deal, no buyer is willing to pay face value? Everyone looks for something off. Buyers believe they can negotiate cosmetic change to fit their taste from your asking price. No home is just perfect. It's a buyer's negotiating tactic. So as a general rule, how much above what u are willing to accept should u price your home so a buyer can feel good when u allow them to get a better deal than the asking price?

Help the community by answering this question:

Answers

10
JOSEPH RUNFOLA JR, BROKER, GRI’s answer
Remember that the price you paid for your home or the proceeds you "want" from the sale have no effect on the value of your home! Overpricing will attract fewer potential buyers and the home will sit on the market for longer. Once a home sits on the market for too long it becomes stigmatized and agents stop showing it to their buyers. Another problem with overpricing will come from pressures from lenders. If you do find a buyer who is willing to meet your price, chances are they still need to obtain financing. Lenders look at the fair market value to determine the amount they will finance. How do you know if the listed price is reasonable? One of the best, and easiest, ways is to ask your Realtor.
1 vote Thank Flag Link Sun Oct 20, 2013
Keep in mind that when a property is priced on target, or slightly below, multiple offers can and do occur and such a strategy could result offers above asking....
1 vote Thank Flag Link Sat Oct 19, 2013
Each market has trends. Your agent will be the best resource. In our hot California market many buyers pay over asking.

One way to look at selling your house is much like purchasing a car. As a buyer you are going to be comparing one against the other based on condition, age and price. If all things being equal the lowest price generally will get the buyer's attention.
1 vote Thank Flag Link Sat Oct 19, 2013
Ask your real estate agent for the current list-to-sale ratio for comparable homes in your area.
That'll give you an idea.
1 vote Thank Flag Link Sat Oct 19, 2013
Mindy, it seems that your ideas of how the market works are not correct. You may think you have the best house on the market, and you may be right, but obviously no one else thinks that, especially buyers. Buyers are always looking for value and will not pay more than what they think something is worth.

I just sold a house, in thirteen days, at full list price. The reason, it was priced right and many buyers were interested in it. I had multiple offers on it and all were very close to the asking price. Could I have listed it higher? Perhaps. But then I might not have gotten so much interest or so many offers. The bottom line is I had a seller who was willing to listen to my advice and was smart enough to know that the market for her home was at the price it was listed. Did she want more for her home? Of course she did. But she didn't let her own ego get in the way of selling her home.

Mindy, its time for you to get rid of your ego and listen to a professional's advice. Call me and I will help you sell your home at the right price. 718 689-3850
0 votes Thank Flag Link Sun Oct 20, 2013
Hi Mindy, I will have to respectfully disagree with you. I have sold many homes in the past year at asking price or above. A qualified buyer is looking for value, it is a misconception that homes must be discounted from list price to satisfy a buyer. Of course, it is rare that a buyer begins with asking price upon first offer. However, that is where your REALTOR's negotiating skills become his/her weight in gold. If your home is accurately priced a good REALTOR can get you full list or better. Further, in my experience when a home is priced accurately at current market value, you typically wind up with a better stronger final price than you would if you priced your home above market value. Why - when people recognize good value they are afraid to miss the opportunity and they act more quickly, and more aggressively. When buyers feel confident that a home will be "around for a while" because it is overpriced they don't make such strong offers, and many times don't even make offers at all, they think a better value will be coming along - and they will wait for it.
0 votes Thank Flag Link Sun Oct 20, 2013
Oh Dear, You are the Seller, and it seems you want whatever YOU want or you think your house is worth.
Quick correction for you, your house no matter what YOU think is only worth what a ready and willing
and qualified (very important!) buyer is ready and willing to pay, otherwise they will walk and look for the
next best property and there is always another one coming along.....

Now put yourself in the position of a buyer, you now want to buy a home, will YOU just pay what the
Seller asks? hm interesting right>

Here is what I suggest strongly to any Seller, I work with or I see their concerns and questions here on
Trulia, it is not what you THINK your house is worth nor what it is that you need or want to sell it for,
it is what the current market will bear and a buyer will like, want to see, then still likes, and is ready to make an offer, and then both side Seller and buyer will have to negotiate on price, terms, because it is
not always just the price that counts!

If you work and list your home with a good experienced local Realtor that Realtor should show you on paper those properties the most similar to yours that have recently sold for how much and their
history or price changes etc., and also should show you on paper homes similar currently competing with yours, remember buyers can look at all of them, higher and lower priced ones, bigger and smaller ones they have a lot of options... so YOU as the seller, want to prepare your home as best as you can and your Realtor will be the most helpful there because they have seen a lot of homes - you may have to do some painting and some staging, and professional photos are a must, so that on the internet buyers will be intrigued to see your home...

I also always show some of the competing homes to my sellers, so that they themselves get a feeling what buyers will see and compare their home to, helps in pricing your home right, competitively, to get a lot of interest, and yes including in the initial list price a buffer for negotiations.

work with a Realtor, it is a wise decision, even if you have to pay a commission in that case, but remember if you sell by owner, the buyers want part of what you save, they know better they are well informed and if they come with their own Buyers Agent, that Agent will want an agreement in writing from you that YOU the seller if this buyer buys a commission (part of a full commission but often more than half ) to bring the buyer to see your home, before even showing it....

So give it some thought and I hope you will connect with a local Realtor for all your concerns and list
your home with him/her, if you need a recommendation let me know.

Sincerely yours,
Edith YourRealtor4Life & Chicago and Northern Illinois Expert

Working always in the very BEST interest of her clients, Buyers, Sellers and Investors alike....
And always with a SMILE 
Covering for @Properties the city of Chicago, all N and NW suburbs, the fine homes on the
North Shore, and many of the W and SW suburbs, and with her trusted Partner Agents all of
the US and worldwide properties. Edith speaks French, German, some Spanish and other.....
@Properties Brokerage, 30 Green Bay Road, Winnetka, Illinois 60093
EdithSellsHomes@gmail.com
Check out my website at htttp://tinyurl.com/YourRealtor4Life
HAVE THE MOST WONDERFUL DAY :)
0 votes Thank Flag Link Sun Oct 20, 2013
Everyone gave you good advice here, which leads to one conclusion....you should list your home with a realtor!
0 votes Thank Flag Link Sat Oct 19, 2013
Mindy,

Have you ever thought of pricing it way below market and have a bidding war? Selling price typically ends up at market in such cases and if not, you don't have to accept an offer.
0 votes Thank Flag Link Sat Oct 19, 2013
I would not price it that much over market value. Buyers start low but if the house is worth the value you should be able to get your price. If you overprice it you will get fewer showings and maybe miss out on a good buyer. I just had a buyer make a really low offer on new construction and when I tod them the past 3 weeks that the builder sold 3 has offers accepted the past 2 weeks on 3 of the 4 houses they have raised their offer substantially.
0 votes Thank Flag Link Sat Oct 19, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer