Home Selling in 78613>Question Details

Lfrazier2, Home Buyer in Cedar Park, TX

Question about selling a home and pricing it correctly

Asked by Lfrazier2, Cedar Park, TX Mon May 23, 2011

I am about to list my home for sale. I know price is important especially in today's market. I want to list it priced already at the bottom price I will accept and at a price I can realistically expect to receive. I expect that buyers will want to negotiate. My question is should I list it at my bottom price or start it out a little higher so I can come off the price "to negotiate'. I would like to price it at 289,900.00 right from the start. Should it go on the market at say 299,900.00 so the price can be negotiated. I don't really want to do this but I have been told by a realtor before that negotiating down is what I will have to do to get to the price I originally wanted to begin with. I have acreage and all the homes in my little subdivision ( approx. 40 ) are all valued at 400,000 to 765,000. Mine is the oldest, one of the first homes built so I believe it will be priced correctly. I would just prefer to not do the back and forth. Which is the right direction to go in.

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Answers

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I would have to ask you how you came up with your price? Do you you have enough in the price to cover all your closing cost, do you know what that cost is? What does the tax roll value your home at? What do you think it will appraise at? How much has been updated? What is the age of your house and what is the age of homes around yours. A lot goes into a price. We just had a home in Cedar Park appraise for $30,000 below sale price what would you be willing to do if that happens to yours? I would ask you if you saw a home you loved would you go in and offer FULL price yourself? The buyers are well educated right now yes they are looking for deals, even if they can pay your asking price with homes losing $10,000 a year that have to make sure they are not over paying for a house right now. Your agent told you right pad the price a little so you can be flexible. or maybe offer to pay part of the buyers closing cost, offer a Realtor Bonus to the selling agent.
The best thing that sells a home is condition. Go around and take pictures of your home inside and out, then look at the pictures as a buyer would, what would you change? Would you buy this house again as it looks today? You are not in compaction with the homes in your neighborhood $400-$765, you compete with the nearby homes under $300,000, how does their price and size compare to yours? Go look at them?
Best of Success.
1 vote Thank Flag Link Mon May 23, 2011
299,900 is definitely a good place to start. That way if closing help is needed or they offer lower there is room to negotiate. Also, by pricing just below 300 you will pick up all buyers that search up to 300. Some sellers want to price at 305 or 310 ect... It puts you out of the actual range of buyers you rea
lly want to target. Hope this helps! Kim
0 votes Thank Flag Link Thu Jul 21, 2011
A good way to get your home sold is through the negotiation process. You want the buyer to make an offer to engage them in the process; thereby coming to an agreement, a meeting of the minds to get your property sold. Even at a really good deal most buyers will think that your price can be negotiated down even at a low listing price.
0 votes Thank Flag Link Thu Jul 21, 2011
Okay the internet has put the old end in 999 method out the door, so you would go with 275,000 or 300,000 since we have broken prices up to these parameters for searching purpose! I will tell you this now, set the price if it is fair market value at $300,000.00 This will set it in the first pages of a price search! Listing on the MLS this will be a good number for showing up early on any search for house feature and price range! Here is what you do, agree to what ever the agent sets up as commission rate, but 6% is considered a normal amount, this means the house will pay a commission of $18,000 which is usually split so $9,000 to thee seller agent and $9,000 to the buyer agent. Make the buyer agent side sweet, it means more agents with buyers will consider to show your home with hopes of a possible better pay check! So offer an extra $5000 to the buyer's agent, so the MLS as the agent will see it says as follows (Agents only see this not customers) Selling Agent 3%, Buying Agent 3% + $5000. See what I'm saying. Make sure that you keep the house at the selling price set and offer incentive to buyer agents to bring the buyers to you!
0 votes Thank Flag Link Wed Jul 20, 2011
Look at all the replies!

You are the sort of seller most agents want. If your property is really worth $289,900 then I feel $299,900 is an OK cushion for "negotiating room".

Both numbers are just under $300K - which is where your buyer will have drawn their upper limit. If you were looking at $295K or $305K I would still say keep it in the twos.
0 votes Thank Flag Link Tue May 24, 2011
Hello LFrazier in Cedar Park,

You are my dream seller!! You know you want to sell your home, you don't want to mess around and you are knowledgeable about your home versus your neighborhood.
You've received some great advice from these agents already, and without meeting you, seeing your home or doing research on your particular area of Cedar Park, it is difficult to give you a concrete answer. In general, buyers don't offer full price. That doesn't mean you can't start at your bottom line price and refuse to lower it, but keep in mind also, that even if you get that price, that buyer may come back later and ask for a repairs concession after their inspection. You can refuse that too, but it's nice to have a little extra room, just in case. There is no problem pricing your home at or close to your bottom line if that's where you feel the most comfortable. It will stand out against the competition if the price is right. Again, it all depends on how your neighborhood comps out. With the little bit of information I have so far I don't know if $289, 900 is overpriced or under-priced, that's a discussion that we can have after I take a look at your home.

When's a good time for us to get together this week? Give me a call at 922-3965 or drop me a quick email at Leigh@LeighHilliard.com and we can talk about it further. I am looking forward to meeting you, seeing your beautiful home and getting your house SOLD!
Thanks,
Leigh Hilliard
Keller Williams Realty
0 votes Thank Flag Link Mon May 23, 2011
I would have to agree with the line of thought of marking it at 299K. I know the market you're in and there is plenty of demand for those desired properties that are priced in line with recent comparables.

We here in the Austin metro have begun the rebound and all the economic projected forcast show that we should gradually start seeing price appreciation especially in neighborhoods that are in demand. Cedar Park as a whole is expected to have explosive growth and restricted pockets will appreciate faster due to there unique features and locations.

I would get it on the market ASAP so that you do not miss out on the "main" wave of buyers here in this area. Like the agent below, if you have no showings within a week or an offer within 21 days, you must drop to you lowest acceptable.
0 votes Thank Flag Link Mon May 23, 2011
I love your direct approach and let's get it done attitude. So many sellers over price their homes and lose the prime buyers that visit their home the first 30 days. As an agent that has multiple buyers; I would suggest listing at $294k. For the simple fact that buyers mentally do not want to pay list price. With the low rates and Good Morning America boasting what deals buyers can get they expect it below list price. Keep your home in what I call "striking range" and get it sold fast. Fantastic attitude for a seller. Who knows I might be showing your house to one of my buyers.
0 votes Thank Flag Link Mon May 23, 2011
Hi Lfrazier2,

When I list a property for a seller, I do a Comparative Market Analysis (CMA) based on Sold comps (in the last 3 months). I suggest to the seller that the listing price be based on that. I don't list lower or higher - I list at market value. Of course, the seller ultimately determines the listing price but they usually go with the listing price suggested by the CMA. If the buyer has a good buyers agent, they will know what the value of your property is by doing their own CMA and base their offer on that. True, there are buyers who will try to negotiate the price down but if you've listed at the true market value, all you have to do is either counter their offer or say 'no'.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Mon May 23, 2011
Cedar Park Seller,

Great question. In my experince, today's buyers generally offer under the asking price, unless it's ridiculously underpriced, which can prompt higher offers in a 'bidding' enviroment.

A key piece of information for me is which direction prices are moving in your market. If prices are declining, then you want to price ahead of the market, which argues for a lower price.

I think your agent is providing good advice: start at $299,900 (under the $300k barrier) and negotiate the best terms possible. If you have received no offers after 21 days, consider a price reduction.
0 votes Thank Flag Link Mon May 23, 2011
You also need to look at how active your market is. If a lot of homes are selling in less than two weeks, then you can price at your bottom line number and not be flexible. In our market, we have a lot of homes that sell for full price or more.
0 votes Thank Flag Link Mon May 23, 2011
Hi, As long as the $299,000 price doesn't make it grossly overpriced. It's important to look at the competition in your immediate area if there is any. Also look at what has sold in the past six months because these are the comps a buyer is going to use to formulate their offer. Homes do sell for the asking price but it will have to be evident that it's a great price and also a great value at that price. Good luck!

Chris
0 votes Thank Flag Link Mon May 23, 2011
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