Sellers in today's market can't always reduce prices to adjusted market values. They may owe more than the home is worth. If that's the case, the seller can't or won't adjust that far down, and you're certain the value you placed on the home reflects its worth, move on.
In determining your offer price, how did you come to that number? There are so many variables in calculating comparables. Are the other homes also on 7 acre lots? In the same neighborhood? Are their features the same and if not, did you use an appraiser's worksheet to determine how much to add or subtract for the variables?
Sometimes a difference in value can be attributed to a very specific location or particular style of home, such as the MCM homes in Hollin Hills (Alexandria VA). A 60's rambler in another area might not have the cachet the Hollin Hills homes have, nor the community amenities, schools, etc.
As Jack noted, there's a big difference between national trends/forecasting and the realities of our market here in DC Metro.
The poster who commented on pricing strategy is spot on - I lack the local knowledge she may have - if she's right and your home may fetch more, then work this offer as you strategize a price adjustment that reaches a new pool of buyers.
In my experience once a home hits its strike price - as deemed by the consumer - it will sell quickly and within a fairly narrow band to that strike price. I also find that homes that are considered overpriced will tend to draw low ball offers.
But Bill is also right, this is no market to overlook any offer - buyers test to find your bottom, sellers work to find the buyers' ceilling. Try to work on this one, and see if you can't move to a place that is acceptable to you.
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Check out this article http://therecoverytimes.com/?p=1381 and lots of others. Property value in DC has not taken a hit like other areas, and is actually increasing.
The excerpt from the article about DC:
4. Washington, D.C
This capital city has weathered the crisis well and come out strong. In fact, homeowners are enjoying something they probably forgot existed: Bidding wars. According to Zillowâ€™s HVI, prices have increased approximately 2% since last year. The modest increase is because prices never reached the rock bottom levels that many other areas saw. Realtor Susan Isaccs of Hounshell Real Estate says, that not only did DCâ€™s metro area not fall as much, but has been recovering ahead of the rest of the nation according to statistics. Furthermore, she says that days on market (DOM), which measures how long a house is on the market before sale, is the lowest since 2006. â€œI have experienced bidding wars, multiple offers and extremely short DOM on many products this past year,â€ said Isaacs.
If you need any other advice, feel free to message me directly.
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But in general your home is worth what a ready and willing and approved buyer is ready and willing to pay for your home. It is usually easier to negotiate with an interested buyer, than hoping for one who may or may not offer more. The longer your home is on the market the lower the offers may become.... Try to negotiate as best as you can, and realize that your home needs work.... If you are working with a Realtor who is very good in negotiating with the buyer's side, and if the initial offer was 225 K and your last asking price is 299 K, you should with some intelligent negotiations meet somewhere in the middle, although look at the buyers loan terms and that your property will appraise out.....
I am not familiar with your area's real estate market, but in general I do not see a quick improvement in the economy, in the unemployment numbers etc., and there are in most areas still too many distressed properties, short sales and foreclosures (those bring the values of homes and the pricing down!)......
So try to negotiate as best as you can with the current buyer, but make sure that during inspection not a lot of problems will be found that are hidden and will be found by the inspector for the buyer.... I hope that you have listed your property with a Realtor who can be of assistance....
Edith YourRealtor4Life and Chicago Connection
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My best quess is that you are located around Blair Rd in Takoma Park area or the Chillum neighborhoods and sounds like 299K is a fair price unless their is some unusual circumstances regarding this home needing a huge amount of work and not financiable under FHA or busy or high traffic location etc. I would assume that at the earlier price of 399K you or your agent compt out the prices for this location and condition and it depends upon your situation ..are you buying another home or facing foreclosure? But in any event I will never know the full story! 26% off your neweasking is huge ..if you are considering such a low drop ..I suggest reducing it to 250-275ish you may want to do this in increments every few weeks but it willl broaden the interest and you may do better than $225k in the end!
Simply stated, ths is NOT the type of real estate market to play games with an offer. Too many people have don so only to regret later not having taken the earlier offer.
It's difficult to say what's going to happen with the market 6-8 months from now.....but one thing is for certain, you have an offer that you may be able to negotiate a bit of an increase on in front of you.......most RE professioanls would advise you to work with what you have and see where it leads.
Hopefully your agent has been marketing the home to the highest level in this area (micro-local, I'm assuming you're in Petworth)
Your Realtor should be able to show you current market values in your neighborhood for similar homes. This can help you determine if the current offer is fair or a low ball offer. It will also help you determine a fair counter offer. No one can predict the market a year from now so it all depends on your motivation for selling. If you are ready and must sell and can work with the current buyer then I would recommend going for it. Another 9 nine months is a long time to wait and you don't know if another buyer will come along especially if there are other more upgraded options available at the same price point.
Good luck with your sale!