Stephan, Home Buyer in San Francisco, CA

How do I know if I should offer more or less than the listing price in Singer Island?

Asked by Stephan, San Francisco, CA Mon Apr 23, 2007

Is there a difference if I'm looking for a single family home versus a condo, or some other type of property?

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12
Ron Thomas, Agent, Fresno, CA
Sun Jul 22, 2012
LISTING PRICE
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.
2 votes
Gary Geer, Agent, Antioch, IL
Mon Nov 3, 2014
Stephan,
Discuss this issue with your agent. That is your best resource as most agents have presented many offers on homes.

All the best.
0 votes
Michael Jose…, Home Owner, Gulf Breeze, FL
Wed Oct 22, 2014
If you are looking in FL with the exception of maybe area's of Miami you probably should never offer full price. It also depends on the condition of the home and comps. This is much easier than an agent would like you to believe. Go on Zillow and put in the address of the home. Look on the map and the yellow marked homes are recently sold. It will give you the date of sale of home, price, time on market and price sold for. Many times it will show you the different price cuts. Look for comparable homes and check the price per sq ft. This is exactly what an appraiser does to decide the homes value and if you had 3 different appraisers you would have 3 different values. Home sales are down YOY. Calculate the average price per sq ft and see how it compares to the home you are looking to purchase. If the home is 10k higher from comparable homes, you should be offering less. Also it doesn't matter what a home is worth some sellers don't want the value of the home, they want more and it may not sell. It doesn't matter what you do or say some people are under water or just want to much for the home. If a home is priced right in most area's it won't be on the market very long.
0 votes
Randy and Vi…, Agent, Punta Gorda, FL
Sun Aug 17, 2014
Regardless of the time or place you should always have your realtor research for comparables. Once you have a price range it would be up to you to determine how much the property means to you. If the property is everything you're looking for in a hot market don't come in with a low ball. If the property is so-so you might want to come in at the lower of the price range.
0 votes
Michael Jose…, Home Owner, Gulf Breeze, FL
Sat Aug 16, 2014
Go on Zillow and look at the map around the home. The yellow colored are recently sold homes. It will give the the sq feet of the home, date of sale and sale price. You can double check the sale price with the county office but almost everyone I've seen are completely accurate. Some homes will also still have pictures of the home sold and description. It's not very hard to figure out com-parables when you have access to recently sold homes and this information. Also look at ones currently listed what they include ex. sq foot, granite ect. Check the time on the market. Home sales in most area's are continuing to decline from last year along with mortgage applications. Look at the condition of the home, find out how old the A/C system is, if the roof has been replaced. You can find out when a permit was issued for roof at the county site. All these factor into a price
0 votes
Scott Godzyk, Agent, Manchester, NH
Sat Aug 16, 2014
You need to assess what each property is worth and base your offer on that, you dont know if the list price is at market value, way low already or priced way to high. A good buyer broker can sure help with that,
0 votes
Annette Law…, Agent, Palm Harbor, FL
Sat Aug 16, 2014
Every real estate transaction i is different.

What you need is relevant data.
What I prepare for buyers who chooose to work with me is a Market In A Minute report for the community and a CIS score for the real estate. What needs to be done is crystal clear.

However, most buyers need to 'burn a few' before they realize the data is true.

Take a look. http://www.Trulia.com/blog/AnnetteLawrence

Have your REALTOR prepare the same.
0 votes
Micah Matson, Agent, Athens, AL
Sat Aug 16, 2014
It is strange how many of the same questions you have asked about so many places. Seems very fake.
0 votes
davidbend126, Home Owner, Oregon City, OR
Mon Oct 14, 2013
More than likely, you should offer less. I have seen quite a bit of success with doing that! :)

David | Dentist Surrey
Web Reference:  http://www.doctorben.ca
0 votes
Marc White, Agent, Charlotte, NC
Sun Jul 22, 2012
It depends, I would suggest contacting a local agent and speak with them. Allow a local expert share their knowledge with you.
0 votes
David Aberna…, , 33477
Sun Sep 16, 2007
In addition to reviewing the information provided in a typical Comparative Market Analysis, you will want to look at the absorbtion rate in the market. For the most part you will find that Singer Island has more than 3 years of inventory. As a general rule if you have less than 6 to 9 months of inventory the market tends to move up in prices, when there is between 6 and 14months of inventory the market tends to be stable historically, and when you have more than 14months of inventory the prices usually will decline. For most price ranges on Singer Island at current we have more than 3 years of inventory. keep this in mind when you if you are making an offer for property on Singer Island.
0 votes
Thanks, David, for driving home values down even further! Bravo!!
Flag Tue Nov 19, 2013
Marilyn Peir…, Agent, Riviera Beach, FL
Mon Apr 23, 2007
There are differences in evaluating pricing of a condo or a home. A professional Realtor will provide you with a Comparative Market Analysis and a history of the pricing/valuation of the property you are interested in - there are too many variables to go in a short, but supply and demand, days on market, location and the profile of the Seller all go into setting a price point for the Buyer.
0 votes
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