Home Selling in Buffalo>Question Details

Cesar Garcia, Real Estate Pro in 11372

How many offers does it take before an owner realizes the market value of his home if they are all in the?

Asked by Cesar Garcia, 11372 Tue May 27, 2008

same ball park purchase price???

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Just a thought....why do we realtors take listings that we know are overpriced. We explain to the seller that the listing is overpriced, try to convince them that its not worth what they want for it, but we list it anyway. Then, when it doesn't sell, they get angry at us. They will always have that first number in their head and it is hard to convince them to reduce it. We've got to stick to our guns. Even though we know we will lose the listing to another agent who is deperate and willing to take the overpriced listing. Just a thought, and for future reference this question would be best posed in the agent2agent forum.
2 votes Thank Flag Link Tue May 27, 2008
Usually your first offer tends to be your best shot at obtaining the best price for your home. This is because your home is 'fresh' on the market and buyers (hopefully due to pent up demand) have pounced on your home and are emotionally attached to it. As homes sit on the market, they tend to get 'stale' and buyers don't feel a sense of urgency to move quickly in negotiations. Don't sit around waiting for better offers. Put the first one together if you can!
2 votes Thank Flag Link Tue May 27, 2008
I disagree.... I believe that you shouldn't wait for that many offers. I believe that you should be providing the owner with constant feedback and market activity prior to any offers. Thus when the first offer comes in you can turn around to your owner and explain that difference between asking price the offer has much to do with the current market activity. Coinsidently I recntly wrote about this (If the Price is Right) on my blog. Feel free to take a look at it on Active Rain (http://activerain.com/blogs/cninasoto).

Good question...
Cynthia (Cindy) Nina-Soto
Web Reference: http://www.NinaSoto.com
1 vote Thank Flag Link Tue May 27, 2008
Cesar,

"A mans home is his castle" comes to mind immediately. The reality is that most people,have a very high impression of the value of their home. It does take time and effort to bring them around but it does eventually happen in most cases.

Unfortunately, we can't assign a number it........
0 votes Thank Flag Link Sat Oct 18, 2008
In my case, I let a well respected agent tell me what he thought the sales price for my house should be. He gave me three prices and recommended taking the middle range one and I agreed. Now with the house on the market of 6 weeks, he phoned and asked me to drop the price by $10,000 saying the neighborhood was not that great and the rooms of the house were small. LOL Neither of these things changed in the six weeks since we signed the contract. In that time, we received no communication from him after he allegedly showed the house 4 times, so I have no way of knowing IF his original price was too high to start. The price HE gave us was $20k over our purchase price from 2.5 years ago and is lower than the amount of money and time we spent to rehab it to perfect move in condition. I was not even looking to make any money on this sale, only enough to pay off the remaining mortgage and the home improvement loan I made.
So, it seems while you real estate pros also make mistakes, you attempt to place the blame on the seller....that was not the case in my situation. At present because of this agent's poor performance and severe lack of integrity, we are attempting to have the contract voided. So far, even though the broker has promised to void the contract, we have not been communicated with in over three days!
0 votes Thank Flag Link Sun Oct 5, 2008
Cesar, sometimes the seller is right with regard to valuation; however, being right does not always translate into a successful deal. For example, last year we had a seller list their condo with us in Amherst for $101,000. We had advised the seller that the highest valuation we could ascertain using recognized valuation methods was about $92-$94,000; which means absent a cash buyer it would be questionable whether a bank appraisal would arrive at a valuation in excess of $$94,000. In fact, an a-rated buyer did offer a written contract for $100,000. However, the FHA appraiser came up with a value of $93,000 - exactly what made sense to us. The seller had two choices: (1) reject this offer and wait for a cash buyer or (2) accept $93,000. The seller chose to accept $93,000. Recently, I saw that a similar condo in the same complex sold for $99,000 to a cash buyer. This new sale will now be available to appraisors and we should expect new sales to appraise at this level. We just had a sale in a suburb of Buffalo for $150,000. The bank appraisal came in at $130,000. Both the seller and our firm did not believe the appraisal was accurate. The seller paid for their own appraisal and this one came in at $148,000. Some difference! The buyer backed out. I understand we just received an offer today at $143,000. I don't know what the seller is going to do. What I am getting at here is that valuation is a difficult task in this market. Lenders and appraisors are nervous. Each case needs to be examined on its own merits.
0 votes Thank Flag Link Wed May 28, 2008
i agree with Jed, the listing should be entrusted to the salesperson/associate broker who is well versed in the marketplace, has awesome resources and sometimes tells the seller what they do not want to hear.. the realistic prices based on the marlet and the immediate competition.
0 votes Thank Flag Link Wed May 28, 2008
Cesar,
Experience has taught me that sellers "realize" the market value of their home earlier if their agent is upfront and honest about the value at the time of the listing. That is not always easy for an agent, particularly when the agent is facing competition from other agents who are "dangling" a higher listing price. It boils down to the trust level, from the beginning of the relationship, between the agent and the seller. If the seller views the agent as a true professional who has the seller's interest in mind, then in most cases the seller will benefit from the agent's knowledge of the market and act accordingly.
0 votes Thank Flag Link Tue May 27, 2008
hi Cesar. the answer is not just facts and figures, it may be emotional. the seller may realize the price point is too high when he/she feels the buyer is worthy of buying and LIVING in his/her property. as brokers, we deal with the entire package.. qualifications and motivations are more than just financial and terms.
0 votes Thank Flag Link Tue May 27, 2008
It takes as long as it takes for their Realtor to explain the facts of life to them.
Web Reference: http://GailGladstone.com
0 votes Thank Flag Link Tue May 27, 2008
Interesting--I've interpreted your question somewhat differently than those answering below.

As I read your question, if all the offers are in the "same ball park," how long (how many offers) will it take until the owner realizes what the market value is? This situation sometimes comes up when an owner is convinced that his property is worth more than the Realtor is suggestion.

So, hypothetically, let's say the house is worth $410,000, according to the comps. The Realtor suggests putting it on the market at $419,000, to allow for a little wiggle room. The owner, however, is convinced that the house is worth $449,000, and the Realtor reluctantly agrees to put it on at that price, but that the price will drop if there's insufficient activity or interest.

So, if I understand your question, some offers do come in. But they're at, say, $410,000, $399,000, and $418,000. How many such offers does it take for the owner to realize the market value?

I'd say 2-4. The reaction to the first one is probably, "Oh, that's just an investor lowball." Second one might be, "Well, I guess they're looking for a bargain. But after a few more, most owners are going to realize that the market is speaking loud and clear to them.

Just my opinion. Hope that helps.
0 votes Thank Flag Link Tue May 27, 2008
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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I think 3-5 offers is a good number any one aggree !!!!!!!!!!
0 votes Thank Flag Link Tue May 27, 2008
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