Woodlandsmom, Home Seller in The Woodlands, TX

If we list our Woodlands house for $239,000 and a buyer is interested...

Asked by Woodlandsmom, The Woodlands, TX Tue Jul 21, 2009

but will only spend $225,000 for example, would they make an offer or just look at lower priced homes? Do buyers feel that asking that low is an insult and wouldn't be willing to negotiate?

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Answers

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Understand that the LISTING PRICE has one primary objective, to attract attention: It is not intended to be set in stone, and in many cases it is not even a good guideline toward the SELLING PRICE.

Some Sellers believe that by setting the LISTING PRICE high, they can always come down, and people will make an offer anyway: WRONG! Buyers will just bypass the property and look at houses that are within their price range. And six months from now, the Seller will slowly start lowering the PRICE, (this is called “chasing the curve”) and Buyers will be asking the question; “What’s wrong with that house?” and “Why has it been on the Market so long?”

Other Sellers set the LISTING PRICE low, to attract multiple offers. (The correct strategy.) We are asked; “Aren’t you obligated to sell at this price if someone offers it?” The answer is probably not; for that to happen, you would first have to have only one offer, and secondly, the offer would have be exactly the same, down to the smallest detail, (please discuss this with your Realtor).
Another thought; Buyer will search for potential properties by groups; for example, $400,000 to $450,000, and $250,000 to $300,000. If your house is priced at $460,000 or $310,000, the Buyers will never see it. (something else to discuss with your Agent.)

We have found that extremely often, the LISTING PRICE that is set on SHORTSALES and REO’s are not determined, nor even discussed with the Bank: The banks play their cards very close to the vest, they will not tell the Listing Agents any more than they have to; they will not give us their lower limits. So usually, the LISTING PRICE on a distressed property is a number taken out of the air.

If you are considering a property, have a Realtor do a CMA, (Comparative Market Analysis) to help you determine your Offering Price. If you look at enough CMA’s, you will see the trends.
0 votes Thank Flag Link Fri Aug 12, 2011
Buyers in our area that are being represented by a good agent that knows our local market will be looking at homes that are over their price point by upwards of $80,000. The list prices are many times inflated and not consistant with current market data. As a Buyers agent we pull comps in that local market to support whatever price we are willing to start negotiating with. We factor in modifications that the homeowner may have done and go up from there. If you are getting offers on your home and your home is being seen by agents then you are likely priced correctly or close to where you should be. An offer should be looked upon as just that...an OFFER. The buyers know you will negotiate and as the Seller you have a right to. Proper negotiations should be handled by the advice of your Realtor of which I am assuming you have. They will help you to counter and provide you with likely outcomes for the different counters you make.
If the buyer can't negotiate or won't go up from their initial it is possible that they are at their highest and best and in that case they will move on to another home. Buyers are very savy today and know that the amount of homes on the market are plentiful and have many to choose from. If they are not "100%" sold on your home they will likely move on.
I like to counter for my Sellers with a reply that includes the justification of why we feel the price should be higher than what you offered...listing the "kitchen remodel. or the new roof" for instance. This reminds buyers about aspects they may be overlooking in the process and reminds them of the Value of the home they are trying to buy.

Good Luck and Let your agent do the worrying that is what you pay them for, its our JOB!

Kimberly McCampbell, Realtor CMS PS
"The McCampbell Team"
Multi Million Dollar Producer
http://www.themccampbellteam.com
kim@themccampbellteam.com
281-652-6725
0 votes Thank Flag Link Fri Aug 12, 2011
Dear Woodlandsmom,
Every buyer is different. And it depends on how the Realtor they are working with educates them on the current Market conditions. The answer could be yes to both. If you have a buyer the is not familar with The Woodlands or the Market in Texas even, they very well may come in with a VERY low offer. If you have a buyer that is somewhat familiar but thinks they still may get a deal, it is possible to get an offer from them. If their agent has spent the time to explain what homes in your neighborhood are selling for, not asking prices, but sales prices, and they see that your home is either, priced right, too high or to low it could affect weather they even look. If you would like more information or to know what the marketin your neighborhood it doing right now give me a call.
Karen Upp 281-660-4611
0 votes Thank Flag Link Tue Jan 5, 2010
Woodlandsmom,
To answer your question directly - YES they are making offers that low. That is about 6% below asking price which is very common because the average list to sales price in The Woodlands is about 96% and that gives them room to negotiate.
If your house is priced where it should be that does not mean you should plan on giving in to a lower sales price than what the market is selling at in your neighborhood. Make sure you hire a solid Realtor with lots of experience in The Woodlands. I always recommend you interview at least 2 or 3 to get clear understanding of what price to list your house for. Remember a Listing Agent does NOT just put your house on HAR and let the Buyers Agents bring you Buyers - they should have a solid marketing plan that allows your house to be seen by as many potential Buyers as possible.
If you have any questions please do not hesistate to call me at 936-499-1067 or check out my website at http://www.bradcarlson1.com.
Thanks,
Brad Carlson
#1 Individual Realtor for Prudential Gary Greene, REALTORS - RFO 2008 & 2009
Web Reference: http://www.bradcarlson1.com
0 votes Thank Flag Link Sat Nov 21, 2009
It best list your home within reasonable limits. If a buyer is only qualified for $225K an agent won't show a home $240K more than likely seller wont' move off their price by $15K or more.

We take our clients from amount approved only nothing over.

Good luck

National Featured Realtor and Consultant, Mortgage Loan Officer, Credit Repair Lecturer
Follow me on Twitter: http://twitter.com/Lynn911
Lynn911
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Tue Jul 21, 2009
Dear Woodlandsmom,
First of all you have to ask yourself if your home is "priced right" meaning at market value at $ 239,000. A good realtor is able to provide a Comparative Market Analysis (CMA) for you. You do not want to list your home overpriced just to try it out for some time and see if you get any takers.
Second for the buyers; some home buyers are looking at higher priced homes and will make "lowball" offers and try to get the deal or the steal of the market. Others are strictly looking within their prize range and will not even find your home on the market.
If the offer price is an insult depends on the seller.
Finally you should know if your home is priced right and the market will support the asking price - your home will sell! In determining the asking price you should also consider how quickly you want or need to move, how many other homes are on the market just like yours and in what shape is your home.
There are many questions to ask and you should talk to a REALTOR® to determine the best strategy for you.
Helpful information can be found on the NAR web page.
If you have further questions please don't hesitate to call me at 936 525 0144 or email at mlothert@kw.com

Best Regards and Good Luck
Martina Lothert
REALTOR®
Keller Williams Realty
0 votes Thank Flag Link Tue Jul 21, 2009
Hello Woodlands Mom,

You are so smart to be thinking through the consequences of the listing - presentation - showing - offer - negotiation - closing processes and how they all interact with one another.

If you list your house with an agent that has both lots of experience and strong negotiation skills, you will benefit from their strategies and techniques for getting you the best offer in the least amount of time and net you the most equity for your home.

When a good agent prepares for the marketing strategy session with you, there is a lot of data that will be gathered. You will learn the ratio of asking price vs selling price...so, as an example, if homes similar to yours are selling for 97% of the asking price, you will need to prepare for negotiation prior to putting it on the market.

There are so many things I would like to tell you about the process of selling your home and getting the maximum equity - but it would take more space than we have in this media. I invite you to call me or email. That way, we can take all the time you need to feel comfortable that you have the information to make informed decisions.

To answer your original question - if a buyer is interested in your home, they should write an offer through your listing agent. However, if the comparable sales show your house is overpriced, many buyers will keep looking because they do not want to insult you. As a buyer, it is unwise to make an offer that is insulting, because the seller will often "dig in their heels" and refuse to negotiate in good faith.

The only way to navigate the complex world of real estate negotiation is to have an advocate working hard for you. I am Kathi Frank. You can reach me by phone (832) 515=5754 or email, Kathi@KathiFrank.com
Web Reference: http://www.KathiFrank.com
0 votes Thank Flag Link Tue Jul 21, 2009
buyers will have their agents run the solds for the area to make a determination if your asking price is reasonable, way high or "just right." The listing agt should have given the seller a list of solds in the past 6 mos-1 year that also gives the same information..if you need a list of solds for your area, write me at springrealtor@sbcglobal.net, I'll be glad to send them to you
0 votes Thank Flag Link Tue Jul 21, 2009
It really all depends on 1) Their Realtor and what their Realtor is showing them (and presenting to them) and 2) What comparables are running in your subdivision, and or upgrades, repairs that may be needed. Pricing your home too high, will most likely knock a lot of people out and your home will sit longer on the market. Pricing competitively will allow you to see a lot more showings and most likely offers in a shorter period of time. Don't forget presentation of your property (declutter, etc) and curb appeal :)
0 votes Thank Flag Link Tue Jul 21, 2009
everytime you reduce the price you open the door to a whole new set of buyers..buyers look around $5000-10000 more or less than they can afford . Every buyer is different..If he has already lost out on other homes, his offer varies from someone just starting out. Write me at springrealtor@sbcglobal.net
for more
0 votes Thank Flag Link Tue Jul 21, 2009
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