Home Selling in Hamburg>Question Details

Snow, Home Seller in Hamburg, NJ

My agent ask me to list my house at same price level as short-sale, He said the short-sales are the real maket price. Is this true for today's?

Asked by Snow, Hamburg, NJ Mon Mar 7, 2011

market My house is newer and in excellent condition compare to the market, but my agent still ask me to list at the same price level as Short-Sale houses. He said the short-sales are the real maket price, any price higher than Short-Sales, just won't sale. Is this a true statement?

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Snow,
Sold comparables are your best guide. If your agent will run a CMA without short sales and one of just short sales, then you can decide how to go. Unfortunately short sales and bank owned homes are part of the market. Often they are overpriced while active because listing agents need to try and get the top of the market to justify whatever offer eventually comes in.
Look for sold comps to provide your range and active comps to define your strategy. Best of luck.
0 votes Thank Flag Link Tue Mar 8, 2011
Snow

There is truth to what your agent says, but it is more complicated than that.

When you are marketing your home it is a product in competition with other similar Homes (products) on the market. The key issue is what homes are your competition and how are they priced. In today's buyer's market buyers compare homes and prices on the Internet. They tend to look for bargains and ignore homes that are overpriced. There are increasingly more short sales on the market now. Nationally, they sell for an average of 81% of the price of non-short sale properties. That 19% discount, however, includes the fact that many short sales (not all) have suffered from neglect and need updating and/or repair. Short sales are definitely pulling prices down in Sussex County.

If there are short sales in your market that are in good condition and compete directly with you home in terms of location, size, bedrooms, baths, etc. then you need to compete with them on price. If not your better condition may be cause for a somewhat higher price. Short sales can take 2-6 months or more for an approval by the lender, so people who need certainty as to their closing date would not want a short sale and avoid those homes. The issue is your motivation. Pricing at the short sale level will probably get your home sold faster. At a higher price there is more risk since we can expect more short sales pulling down prices further in the months ahead.
0 votes Thank Flag Link Tue Mar 8, 2011
Has your listing agent showed you comp's of homes in your area? Which governs what to list your home

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
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0 votes Thank Flag Link Mon Mar 7, 2011
Hi there, a few years ago I may have agreed with the prior poster about excluding short sales from a price analylsis, but no more. With the increase of short sales in New Jersey, these properties should be considered as competition. Your agent can drill down into the specifics for your community, but I'll share with you what I encountered in pricing a home in a community that I hadn't looked at for the last couple of years. Two years ago, the ratio of distressed properites to active listings was around 20% - today it is around 32%. You can bet that the increase in distressed properties is having an impact on values.

There are some buyers that will shy away from Short Sales, and they can be cumbersome, but the process has improved generally and with the right resources, buyers can get them done. So assume that your buyer will also be looking at all comparables - including distressed sales.

Your goal - with the assistance of your agent - is to position your property so that it "pops" among available choices. I always advise my sellers to assume that there will be just one buyer that will be interested in our home and its comparables - position your home so that when that buyer comes along, you are the winner!

Good luck to you,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Mon Mar 7, 2011
Sorry, but it sounds like your agent is looking for a quick sale.

When I do a market analysis for a seller, I do not include short sales unless they are the only homes on the market.

I work with many buyers who will not subject themselves to even looking at short sales. Sometimes it can take 18 months to get one through.

I would interview other agents if I were you.
0 votes Thank Flag Link Mon Mar 7, 2011
Usually short sales are priced at or near the current sales market price and so should your house, if you want it to sell rather than just be listed. You say that your house is newer and better condition which, if true, will be something a buyer will pay more for. The number of buyers might be reduced, which might add some time required to find the buyer for that house, but I would give a try to listing for more than similar short sale homes. Buying a short can be an awful experience that never actually happens and some savvy buyers will know this and avoid them. List it higher than you agent wants but be ready to lower it if needed.
0 votes Thank Flag Link Mon Mar 7, 2011
Ask your Real Estate Agent to prepare Comparative Market Analysis for you. This analysis is a valuable and beneficial to you and will give you an idea how much is actually your house worth.
0 votes Thank Flag Link Mon Mar 7, 2011
In order to determine value, review comps with your agent--recently sold similar properties in the immediate area, then make a determination as to a fair listing price....
0 votes Thank Flag Link Mon Mar 7, 2011
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