Question Details

Anne, Both Buyer and Seller in Brooklyn, OH

$199.000 for my condo worthed $265.000

Asked by Anne, Brooklyn, OH Wed Jul 23, 2008

I want to sell my condo in a very short time and my agent advice me to put it in the market for $199.000. Our goal is to reach an offer of $270.000. He chose to go for a price with a great appel even if my goal is completely different.
He decided to put this price in order to have a lot of people coming and let them competed for the best price.
In my building there are other 9 condo for sale (the less expensive is $249.000) and I am scared that I will loose my time showing the house for a wrong price.
Please help me!
Thanks,

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Answers

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Anne:
Stay away from any price that ends with a 99. Over 80% of buyers look on the net when searching for a home. Because when searching on the net, the ranges are usually based on 50k increments and in your price range probably 25k increments. Therefore at 199, buyers whos price range begin at 200 will not see your home for sale and therefore reaching a price over the 200 mark will make it dificult.
Pricing a home at the search parameters turnover points allows a home to be marketed to two targets. Those looking up to that price and those looking above that price. Placing it at a "99" misses that second market.
However I do somewhat agree with yor agents thoughts in as much as show the home as a value and pricing at or below market value will do it.
I think pricing it at 225 satisfies the market place. At 225 you will attract those looking over 200 and you will below the current lowest unit on the market which shows it as a value. If the home is priced too high nothing will happen. (Look at the one at 249) and if it is priced too low, you will receive multiple bids, which would drive the price up to market value and should also appraise out. Plus I always will take mutiple offers before no offers anytime.
Best of luck.
0 votes Thank Flag Link Wed Jul 23, 2008
First, you can set the price at any number you wish. You, not your agent, decides on a price. If you want to price it at $270,000 (or even higher), you are free to do so.

However, your agent might choose to discontinue the listing. I'm guessing that he probably ran the comps and felt that $199,000 would produce interest and would result in a sale. You don't say whether the other condos for sale in your building are comparable (same number of bedrooms and baths, higher or lower floors, etc.). Ask your agent for a CMA--a competitive market analysis. Then ask him why he's recommending a price of $199,000. Analyze the numbers yourself--it's really not all that difficult in a condo. And then you might actually want to look at the other condos on the market to see how they compare--condition-wise, etc.

Perhaps your agent is hoping for a bidding war. That's sometimes a very good strategy. However (without knowing your condo, your situation, or even Brooklyn), it's very unlikely that a bidding war would boost a price up from $199,000 to $270,000.

Also, you say you want to sell your condo "in a very short time." Again, not being familiar with Brooklyn or your average days on market, I can't offer a definitive answer. However, in today's market, a properly priced property often will sell in 60-120 days. Properties that are priced substantially below comps can get offers much quicker--sometimes in just a few days. Perhaps your agent--responding to your desire to sell quickly--is pricing your condo at the very low end of the comps.

Again, get a CMA. Talk with your agent about his strategy. Actually tour the other units. Then make your own decision about the price at which you want to list it.

Hope that helps.
0 votes Thank Flag Link Wed Jul 23, 2008
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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