First of all talk to an agent who has experience not only in your area but withlong term experience in real estate. Talk to your agent and ask him or her to do a CMA and show you what the market is bearing right now. Have them do another one in 30-40 days if you have not seen any activity on your home. This is a good indication that your home might be over priced. The market will definitely let you know.
mentioned, If you have it listed for 200,000 and get a buyer at 200,000 the deal wont go thru unless
the house appraises for 200,000 or more. If it appraises at 180000 you would need to come down or
the buyer would need to put an extra 20,000 down (thats not to likely). You need a CMA
You mention your house is listed so I suppose you've reviewed comparable sales and studied the market before you determined the asking price. You may have interviewed an agent or several agents in oreder for you to have the information to make a sound pricing decisio.
Your agent should update you frequently when a new listing or pending contract or closed sale occurs in your market area. If the home is comparable, it will affect the value of your home. If it's a real good comparable and an arm's length transaction, it could very likely be used by an appraiser when you find a buyer for your home! The market is constantly moving, especially now. It is imperative that you and your agent review this market data on a regular basis. You don't want to be chasing a declining market downward and your reason and time frame for selling will also determine the best list price to get your home sold. Communication is the key, especially in a difficult market.
As far as having your house listed for what you paid for it in 2002, that is almost completely irrelevant in determining the value today. It might affect what you "need" to p[ay off a mortgage, but it has little or nothing to do with today's fair market value! If homes sold for $200,000 on average in 2002 in your neighborhood, hypothetically you could have overpaid or bought the nicest house in the neighborhood for $250,000 or if homes sold for $200,000 and you could have bought a distressed "fixer-upper" for $150,000 and remodeled it. So homes were "worth" $200,000 but you could have paid considerably more or less. But at any rate, the price in 2002 isn't scaleable to determine if your home is priced right today.
I hope this helps. Good luck to you and to all who are selling in this market.
Realty Executives Orlando
It is possible you are in a steeper declining area than we are experiencing here but still use the sales information of the most recent sales. IF you are doing it for yourself, as opposed to using an agent look to the county tax records for your area. Because prices have been continuing to slide use the following rules to price your home.
1. Look back 60 days
2. Stay within 1 mile of your house
3. Using the tax record of sq feet stay +/- 100 sq feet
4. Match beds and baths as close as you can.
5. Find 3 homes that match, divide the price sold by the sq feet, multiply that answer by your sq feet and now you know an approximate value of your house
If you cannot find three recent sales please consult a professional they can figure it out
JD â€œDanâ€ Weisenburger, GRI
Vanguard Realty, Inc. GMAC Real Estate