i am interested in buying a FYSBO seller wants 105K firm but the house estimate on zillow is 108K is his

Asked by Ria24, Waukegan, IL Sat Jul 18, 2009

asking price too high for todays market?

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8
Lisa Schade, Agent, Libertyville, IL
Mon Nov 22, 2010
While it is true that very few FSBO's go perfect, if at all. And that sometimes a seller will try to fool a buyer by asking too much for their home, in hopes that the buyer would make a mistake. And it is also true that some agents feel they know everything there is to know about FSBO's and Real Estate in general.
There are also those of us that practice it daily. And have actual working knowledge of how these things work.
We also spend our time wisely working on and in real estate in our own market.
0 votes
Fred Glick, Agent, Mountain View, CA
Mon Nov 22, 2010
That's why you need a real estate professional, mortgage person who hires an appraiser for you and home inspectors to make sure things will work for you.

You can hire a buyer agent that represents you to deal with the seller. Either you can pay them direct or include it in the price like a usual real estate agent led transaction.

Sometimes when people sell by themselves it is because they are trying to get more than it is worth. Agents won't even take the listings because it is embarrassing.

Also, some people just think they know everything....another mistake.

Very few FSBOs go perfect. Get a pro, it's worth every penny!
Web Reference:  http://fglick.com
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Lisa Schade, Agent, Libertyville, IL
Mon Nov 22, 2010
Buying FSBO's in today's market can be tricky.
An asking price is simply what the seller expects to receive on an offer of their home. They are "asking" for that price. If they are firm, and they do not receive that price, what are the consequences to them for their actions? Do they need to sell? Or are they just "testing" the market? Did they have an agent and believe that they can do a better job? Or did they receive an offer and the appraisal came in lower than the negotiated price and the buyers walk? Does the seller believe that a Realtor isn't worth their pay scale? Or that they cannot afford a Realtor? Are they in trouble, upside down in their mortgage and think that there is no way they can afford a Realtor?

All of these scenarios are potential reasons that there is no agent involved.

However, those values may be and generally are inflated by an emotional price. A value that does not translate to the new buyer.

A new buyer will not care that you had marked Hunter's first height chart on the corner of that wall. That the living room is where you first sat down with Johnny when you came home from the hospital on his first day. Or that Tanner hit a homerun right into that picture window.

They are looking to make their own memories, and are looking to purchase at a reasonable price considering the comparables in the neighborhood.

Please keep in mind that a home is only worth what someone is willing to pay for it. In any market!
And that value is tracked by sold comparables in the area that are EXACTLY like the home you are buying or selling.

That being said, I would first question why there is no agent involved? Is it because the homeowner is unrealistic about the sales price of their home? Is it because the homeowner had an agent who listed their property too high by the sellers request and then when the home didn't sell the homeowner believed it to be the agents fault?

Who knows, but there are many steps you can take to protect yourself as a buyer.

Generally, buyers do not pay for an agents services. Those expenses are paid for by the bank or the seller themseves. An appraisal costs upwards of $400-$500. So does a home inspection. If I were you, I would interview multiple agents until you find one you like. Someone that you feel has your best interest at heart.

IF you would like to interview me, please feel free to contact me at (224)267-5472 or Lisa@MadewithSchade.com.

I look forward to helping you in any way that I can.
0 votes
Michael Ofsa…, Other Pro, Grayslake, IL
Sun Sep 27, 2009
Make sure to protect your investment by having it inspected by a State Licensed Home Inspector. You have 5 business days after your contract is signed to have any testing or inspection done.

I charge $250 for home inspections and include a Free 90 Day Warranty, a computer generated report with photos of problem areas, summary pages that identify critical issues and more...

20% Discount for police officers, fire fighters, teachers, nurses & active military personnel.

http://www.911inspections.com for more details and up front pricing.
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Mike Stodola, Agent, Libertyville, IL
Sat Jul 18, 2009
An asking price is just that...an asking price. It doesn't mean he'll get it. Especially if he doesn't have to pay any marketing costs there may be more room. However, the appraisal will really tell you if the price is too high or not.

Mike
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Bill Eckler, Agent, Venice, FL
Sat Jul 18, 2009
Ria,

Using Zillow as an instrument to determine a homes value could be very risky business. Coupled with the fact that FSBO's normally have an inflated impression of the value of their home, this could add to your problem.

An often overlooked issue during these times is the fact that most buyers will be financing a portion of their purchase. This means the property MUST appraise for the sale price or the bank will not finance it.

Since you are not working with a real estate professional, you might want to consider hiring an appraiser to evaluate the property. This would be much more accurate than Zillow.

Good luck
0 votes
Fred Glick, Agent, Mountain View, CA
Sat Jul 18, 2009
The other idea is when you go for your mortgage, you have to have an appraisal.

Tell the seller that you will pay the lower of his asking price or the appraised value.

The best way to do that is to have a real estate agent or a real estate attorney help you write the agreement of sale because they can represent your interest.

Lastly, zillow is not the end all of property value. They are using just a computerized estimate, not based on property inspection like appraisers do.

It may actually be worth more!
Web Reference:  http://fredglick.com
0 votes
James Gordon…, Agent, Hamilton, OH
Sat Jul 18, 2009
Are you upset that he is asking 3000.00 than the Zillow price? The best way to determine the value is to have your Realtor® do a CMA on the property. Sight unseen there is no way to tell what the value is.
Web Reference:  http://www.Find1Home.com
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