Market Conditions in 20011>Question Details

Randy, Home Owner in 20011

Have an offer of $225,000.00 on an asking price of $299,000.00. Should I hold out or is the market going to drop?

Asked by Randy, 20011 Sat Nov 27, 2010

A 3,200 sq.ft. home on .7 acre lot. Buit in 60's upgrades needed. Near schools and shopping. On tax rolls for 413,000. Been on market for 9 months. First asking $399,000 but newer homes much nicer at same price. Everything is the same as when built...no upgrades. Carport, no garage. Like a double split level; 4 floors. Want to sell as is; no money for improvements.
A counter offer is in the making but what I would like to know is whether I should hold out for my asking price or consider taking less. How do you see the housing market in the next year?

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How did this turn out for you, Randy?

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.
2 votes Thank Flag Link Sun Dec 26, 2010
Remember it is not where you begin but where you end up that is important. Recommend you counter, if you have not already, and try to pull the offer up to its highest point and then strongly consider accepting it. Receiving one offer does not mean you will see another.

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.

Best,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference: http://www.feenick.com
1 vote Thank Flag Link Sat Nov 27, 2010
You might want to hold out for your asking price or something closer to it.

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 Zillow’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 DC’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. “I have experienced bidding wars, multiple offers and extremely short DOM on many products this past year,” said Isaacs.

If you need any other advice, feel free to message me directly.

Best,

Jack Shoptaw
"Your Real Estate Resource for Washington DC, Maryland and Virginia"
http://www.jackshoptawteam.com
0 votes Thank Flag Link Tue Nov 30, 2010
You know hard to tell your, but your Realtor if you work with one, should be able to make some recommendations by letting you know what has recently sold similar to your home....

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....

Good luck!
Edith YourRealtor4Life and Chicago Connection
Working always in the very BEST interest of her clients
EdithSellsHomes@gmail.com
0 votes Thank Flag Link Tue Nov 30, 2010
Hi Randy,

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!
Good Luck!
Denise Champion
0 votes Thank Flag Link Sat Nov 27, 2010
Get the comps from your realtor and compare them to your house... If recent comparable homes are selling in a similar price range you may have a glimmer of hope (being on the market for 9 months leads me to believe that isn't the case), if comps are going for less than their original listing (which is the most common situation these days) you may want to counter and get what you can... those are hypotheticals. The reality is this is YOUR decision that you need to make given the advice of your realtor, they should know more about your sale than anyone here.
0 votes Thank Flag Link Sat Nov 27, 2010
Shantee,

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.

Best wishes,

Bill
0 votes Thank Flag Link Sat Nov 27, 2010
By all means, consult with your agent about this. You seem very motivated, yet have a bottom line that you do not want to move far from. Keep in mind if they are asking anything else in addition to what they are offering. Perhaps there is something in your counter offer you could put in?

Hopefully your agent has been marketing the home to the highest level in this area (micro-local, I'm assuming you're in Petworth)

Good luck!
0 votes Thank Flag Link Sat Nov 27, 2010
What is your agent advising....In order to determine a fair value, one needs to be aware of comps--recently sold similar properties in the immediate area, after reviewing the data a determination can be made--unfortunately, none can answer with accuracy as to where the market will head tomorrow or down the road, but, what we all know is today--therefore to accept less, or wait, is a decision only you can make.
0 votes Thank Flag Link Sat Nov 27, 2010
Do you have a Realtor assisting you? It seems to be very low to me too. When my clients make offers that are a 1/3 less than list price and are surprised when the seller says no, I always think - before the seller takes our very low offer, maybe they would want to drop the price by another $25k to get closer to a real value rather than taking a low ball offer. Prices have stabilized in DC and it does seem like a very low offer for that much land. I would ask your agent to get you more information about comparable sales in your neighborhood. Good luck!
Web Reference: http://www.lisehowe.com
0 votes Thank Flag Link Sat Nov 27, 2010
Hi Randy,

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!
Zondre
0 votes Thank Flag Link Sat Nov 27, 2010
Do you have a Realtor helping you with this, advising you on the price to take? $225,000 for a 3200 ft2 home on .7 acres sounds extraordinarily low for 20011. Just the land could be worth that much or more depending on what part of 20011 you are in.
0 votes Thank Flag Link Sat Nov 27, 2010
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