I have found a home list price is 89,900 the apprasied value is 75,000.

Asked by Valerie, Tennessee Sat Sep 13, 2008

It has been on the market for over 3 months, what are the chances of getting a lower price? Every house I've looked at my real estate agent tells me that you shouldn't ask for more than $2-3,000 off the selling price. But all the houses she has showed me are about 10,000 over what I want to spend to keep my payment where I want it. I am pre-approved for my loan, and have a 5.5% interest on it, if I find a home in the next week.

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Bruce Lynn, Agent, Coppell, TX
Sat Sep 13, 2008
If you are talking about the Tax Appraised Value, that has nothing to do with market value in my opinion. Some homes may sell well below the tax value and some may sell well above. Tax values can also change dramatically from year to year. Remember the person or perhaps the machine setting this value has likely never seen the house and most likely has never been inside. So that's a tall order for them to set any kind of market value for the house. Listen to your realtor and study the reports they give you and also get an idea from the other houses they've shown you. Most consumers tend to know a bargain when they see one in my experience.
Web Reference:  http://www.teamlynn.com
0 votes
Maria Morton, Agent, Kansas City, MO
Sat Sep 13, 2008
Valerie,
Fair Market Value is what a ready, willing and able buyer will pay for the home.
If you like the house you can offer whatever you want to offer for it. You won't know what the owners will take until you make the offer. The offer must be in writing. Once you make an offer, the sellers have the option of accepting, rejecting, or countering your offer.
What have comparable homes in the area sold for recently?
"Appraised Value" - is that the tax appraisal value you are looking at? Tax Appraisals are different than Mortgage Appraisals. They may be higher or lower than the home's true market value.
If you know what your budget is, why are you looking at houses that are over your budget?
Have your agent research average Days On Market and % of List/Sold Price for the neighborhood. Do the numbers support the price you want to pay? There's a 17% difference between the list price and appraised value of the home you are talking about. 10% off the list price would be 80,910; is that what you are willing to pay?
Web Reference:  http://www.mariatmorton.com/
0 votes
Jacqueline R…, Agent, Bear, DE
Sat Sep 13, 2008
Valerie,

First and foremost - Never pay more than you can afford! Also, there is no set amount for how much you should take off the asking price. That should depend on what homes in the area are selling for, the condition of the home and the number of days on market. If the home has been appraised, you should never pay more than the appraisal value as a lender will only give a loan based on what the home appraises for.

Also, your agent may be showing you homes in higher price ranges because in some cases, you can get the home for a lower price if they have been on the market for awhile, but if she consistently shows you homes that are higher than what you want to pay, you may need to look for another agent.
Web Reference:  http://www.jroark.com
0 votes
Barry Dunn, Agent, Fort Lauderdale, FL
Sat Sep 13, 2008
The only way you will know how much a seller is willing to come down from the list price is to place a SERIOUS OFFER IN WRITING. A REASONABLE offer is based on the recent sales of similar properties and what other competing sellers are asking for similar properties, NOT on a specific range below the asking price or an appraisal done for refinancing or for tax purposes. Many sellers are overpriced and undermotivated. Other sellers may be dead serious and have priced their homes to sell by asking less than their competition. That being the case, the motivated sellers will have NO NEED to come down very far if their property is already the best deal in their particular price range.
0 votes
Brian Brump…, Agent, Boise, ID
Sat Sep 13, 2008
If the list price is higher than the appraised value they won't give you financing unless you have the down payment to make up the difference. Your agent should be pulling comps for any home you are serious about writing an offer on to give you an idea of a reasonable asking price.

You may also want to talk with your lender to see about extending your lock so you have some time to make a proper, well thought out decision. This may cost something but it beats making a serious financial mistake because you were rushed.
Web Reference:  http://www.brianbrumpton.com
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