Home Selling in Waunakee>Question Details

Jc, Other/Just Looking in Waunakee, WI

What is a fair listing price on a home today? Are homes listed at appraised value, assessed value or?

Asked by Jc, Waunakee, WI Fri Jul 31, 2009

estimated fair market value? Once the listing price is determined, what type of a discount would you expect when accepting an offer?

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The property should always be listed at the price for which comparable homes in the immediate area have recently sold,Remember prospective buyers will always want to see the listing price justified by comparison.
0 votes Thank Flag Link Fri Jul 31, 2009
A fair listing price? Fair to whom? I guess I'll be the devil's advocate here.

It depends on a whole lot of factors. Let's take a home that is worth (would sell in 60 days) for $500,000 in as-is condition, which we'll assume is reasonably good.

If the seller is hoping to get top dollar for the house and is willing to wait, a "fair" listing price might be $530,000. That is, probably near the top end of the comps. The risk is that the house may not sell at all, the listing may become stale, and the market may continue to fall.

If the seller wants to sell in a more reasonable time frame, a "fair" listing price might be $510,000.

If the seller wants to sell quickly, a "fair" listing price might be $489,000.

If the seller inherited the home, it's fully paid off and vacant, a "fair" listing price might be $450,000 or less.

What prices are homes listed at? Not appraised value. Very few people pay for appraisals prior to selling their homes. An appraisal is usually done by the lender to determine value before making a loan. Not assessed value. Assessed value has absolutely nothing to do with a home's value. None. Zilch. Usually, a seller has a Realtor do a CMA (competitive market analysis) to determine approximate home value. Then the seller and Realtor discuss the numbers and come up with a list price. In the case of FSBOs, an owner probably will do the research himself/herself, and come up with a number.

What type of a discount would I expect? It all depends? How motivated is the seller? How much is the house worth? How much do I want the house? There are all sorts of statistics out there suggesting that, on average, a house in many areas will sell for about 95%-97% of its listed price. But--and the explanation's too long to go into here--don't trust the averages. You can't just knock 5% off the list price and hope or expect that now you've got a decent value and that the seller will accept it. In our example above, If the list price is $530,000, you'd still be overpaying if you offered 95% of the asking price. On the other hand, suppose you loved the house and it was on the market for $450,000. I'd suggest you make a full price offer. Suppose the house was OK, nothing special, but it was an estate sale. Maybe you'd offer $350,000.

You absolutely must start out knowing the true value of the house. Then you factor in the seller's motivation, your interest, your ability to pay, and so on. Then you make an offer. It's not a cookie-cutter approach.

Hope that helps.
0 votes Thank Flag Link Fri Jul 31, 2009
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
A fair listing pirce is determined by current market conditions in your area. Although an appraised value will be a closer marker than an assessed value, if the appraisal was not completed recently it also will not be a correct reflection.

The offer you accept will vary depending on your list price and other factors at the time. The more accurate your list price, the best chance you will have selling it at top price and in the fastest time frame.

I live and work in the Waunakee community. If you have any further questions or would like a no-obligation Maximum Home Value Audit, please do not hesitate to contact me.

Kristi
608-235-8780
kross@cbSuccessRealty.com
0 votes Thank Flag Link Fri Jul 31, 2009
Good question. Ideally homes would be listed at the appraised value, but the reality is that home owners set what ever price they want. Sometimes it is too high, and the home sits on the market for a long time. I suggest asking a realtor to look at homes like yours sold during the past 3 to 9 months and telling you what the median average price was. The median price is half way between the highest and the lowest and gives you a fairly good idea of the price buyers are willing to pay.
In terms of offers, an easy rule of thumb is to accept up to 10% below the asking price.
Best wishes,
Chery near Yosemite National Park
0 votes Thank Flag Link Fri Jul 31, 2009
What is Fair Market Value? It is whatever a willing and capable buyer and seller can agree on. In today's market that is even more true . Fair market value pricing today depends mostly on the motivation of the seller and how his/ her price relates to every other similar property recently sold in that neighborhood.

Think as if you were the buyer. When would a house interest you for purchase assuming other similar homes are available in the immediate vicinity? It comes down to price for the buyer assuming everything else is comparable.

Insofar as discount: If you work with a knowledgeable Realtor ask them what the customary list/sold ratio is where your house il located. But again, if it's a great price to begin with drawing the interest of agents and buyers, you may get more than one offer and possibly more than full price.
0 votes Thank Flag Link Fri Jul 31, 2009
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