Home Buying in 10940>Question Details

Calisha2005, Home Buyer in 89031


Asked by Calisha2005, 89031 Mon Feb 20, 2012


Help the community by answering this question:


Understand that the LISTING PRICE has one primary objective, to attract attention: It is not intended to be set in stone, and in many cases it is not even a good guideline toward the SELLING PRICE.

Some Sellers believe that by setting the LISTING PRICE high, they can always come down, and people will make an offer anyway: WRONG! Buyers will just bypass the property and look at houses that are within their price range. And six months from now, the Seller will slowly start lowering the PRICE, (this is called “chasing the curve”) and Buyers will be asking the question; “What’s wrong with that house?” and “Why has it been on the Market so long?”

Other Sellers set the LISTING PRICE low, to attract multiple offers. (The correct strategy.) We are asked; “Aren’t you obligated to sell at this price if someone offers it?” The answer is probably not; for that to happen, you would first have to have only one offer, and secondly, the offer would have be exactly the same, down to the smallest detail, (please discuss this with your Realtor).
Another thought; Buyer will search for potential properties by groups; for example, $400,000 to $450,000, and $250,000 to $300,000. If your house is priced at $460,000 or $310,000, the Buyers will never see it. (something else to discuss with your Agent.)

Different Banks have different philosophies about pricing their properties: You cannot draw any conclusions without a good analysis.

Have your Realtor do a CMA, (Comparative Market Analysis) to help you determine your Offering Price. It is the surest way to determine the Market Value of the property.
1 vote Thank Flag Link Mon Feb 20, 2012
Bid whatever the house is worth to you. If you are being represented by a Realtor (and you should), ask your Realtor to run recent sold comps for you.

When you apply for a mortgage and an appraisal is done on the house, this is what the appraisar will use.
1 vote Thank Flag Link Mon Feb 20, 2012
The best thing you should do before making an offer on any property is do some research. Make sure you get the correct statistics and information of homes in the area, history of sales on the specific property etc. Tap into your agent as a resources for this data and information. By looking into these different areas you will be able to gauge if the asking price is on par with competing homes in the area or not. From here you can put in an educated and reasonable offer. The more information you have on a property and the general area surrounding the property, the better you can plan out your initial offer and negotiation strategy.
1 vote Thank Flag Link Mon Feb 20, 2012
Interesting question, Agent in the area should help you with that and comparables. Home Buying in 10940 is the NY area, just curious..
0 votes Thank Flag Link Mon Feb 20, 2012
Keep in mind that if a property is listed on target, or slightly below multiple offers may occur. In order to determine a fair offer, review comps with your agent, recently sold similar properties in the immediate area, see what the data suggests and go from there...
0 votes Thank Flag Link Mon Feb 20, 2012
There are so many variables! So, educate yourself and have your agent sit down with you to look at comps in the area of the house you are interested in. Make sure the comps are sold comps and are similar to the home you are considering. That being said, 10% below the asking price is a fairly good rule of thumb as to where to start an offer. But, as I said, depending on area etc... there are so many variables so rely on your agents expertiese!
0 votes Thank Flag Link Mon Feb 20, 2012
Hi Calisha,

No clear answer if I am telling the truth. So many variables play into the equation. Find a good agent, have them show you what it is worth and what it should sell for an make an offer based on that. It may only be worth 100k or it may be worth 140k, you just never know until you see what it selling in the local area. Educate yourself on the local market.

Good Luck,
0 votes Thank Flag Link Mon Feb 20, 2012
Have your agent provide you with recent sold comparable information to find out what the homes have been selling for. Looking at active listings is not what you want for your information. This is what sellers or their agents believe the property is worth. Looking a actual sales information tells what other buyers are paying for a simialr home. Other things to consider are the condtion of the home you want to make an offeron, and possibly the seller's motivation. If the property has been on the market a long time the reason is usually because it is overpriced. Happy Hunting.....

All the best,
Gary Geer

0 votes Thank Flag Link Mon Feb 20, 2012
It depends...the home could be overpriced, underpriced or priced just right. Contact a local Realtor® to represent you - they can run a CMA and help you determine a fair price to offer.
0 votes Thank Flag Link Mon Feb 20, 2012
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