listing price vs estimate market value vs actual selling price

Asked by Paige, Sunnyvale, CA Fri Nov 30, 2007

the listing price of sugar land home way way high than the estimate market value, and the only two housesdid get sold in recent month are sold below market estimate value. what are the owners and their agent thinking?

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7
Jackie Blank…, , North County, SD
Sat Dec 1, 2007
It's complicated. When a person is a buyer, his/her views are very different from when he/she is a seller. That's what it boils down to. It's very common now for a person who's going through this process simultaneously (selling and buying up in the same neighborhood) and not want to lower $10K for her property but wants $50K+ below list price for the new house. There's a BIG gap.

And speaking of agents, many agents work within a neighborhood and they can't list a house for the actual market value if it's 80K below what he just sold to his last clients 2 doors down. Some markets have changed that much in a short time and even agents are having a hard time, especially if they truely believe in the neighborhood.

I know as a buyer, it seems crazy that these people are not 'getting it', but try to understand that most people are doing the best they can. Do submit for what you think it's worth and make sure your agent is professional and persistent in dealing with the 'unrealistic' seller and agent because at the end of the day, you are trying to make a deal, not teach them a lesson, the mkt will do that for you. I know its frustrating, but hang in there and happy house hunting!
1 vote
Susan, Home Buyer, San Francisco, CA
Fri Nov 30, 2007
Hi Paige,

The same thing is going on in my area in the east bay. I think sellers are stubborn because their neighbor may have gotten $XXX for their house last year, and they may also be refinanced beyond their means and their current home value.

Until now, I avoided the homes that are actually "habitable" because they are way overpriced. They have been for sale sitting around for months, most since the summer/early fall, and some going as far back as spring. I have decided to start making offers on them for what I think they are worth, not the listing price. In y situation, I will probably start at 20-25% below listing price. Since there is a pretty decent selection in my area, I am sure someone may be serious about actually selling their home.

You might want to try the same thing in your area.
1 vote
Wise, Home Buyer, Sugar Land, TX
Fri May 29, 2009
Sugar land is hyped mainly by some agents that are oushy and play fear factors. Your children got to go to best schools. But as smart buyers one need to understand children contribute to ratings and it is beacuase how much as parents put in. A smart kid will be smart in any school in fortbend. One can buy two houses in certain part of Sugar land for the money you need to pay in Avalon. The houses are not even that great looking in Avalon. In colony lakes, sienna (Missouri city) and Magnolia plantattion and plantation colony (SUgar Land). The schools are recognized. Be wise and don't spend money when you can save so much. One house you live and one you can rent. Spend some extra money on tutoring. Don't work for mortgage company until you retire. Also don't fall for agents who are fear mongers....who do not represent you...but say you can only ask 10K less than asking price. Beware of Asian (Pakistani and Indian) agents....they are the biggest fear mongers
0 votes
Wow that's incredibly racist of you... Not all Asian agents work and think the same way.
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M. R., Home Buyer, Mississippi
Tue Apr 14, 2009
Paige,

I have been having the same question. I have looked at the cost per square foot for certain neighborhoods in Sugar Land. It is amazing the dramatic increase from 2007 to 2008. For example $80/sq ft in 2007 to
$115 sq ft in 2008 when the economy is struggling. I have no idea why. I have noticed the supply of houses for sale has started to build up with very few recent sales.
0 votes
Bruce Lynn, Agent, Coppell, TX
Sat Dec 1, 2007
What is determining your estimated market value? I think market value is what a willing buyer and willing seller can agree upon. If two homes sold at X price recently that might give you and idea of what the market thinks of the value of the home.
Web Reference:  http://www.teamlynn.com
0 votes
Deborah Madey, Agent, Brick, NJ
Sat Dec 1, 2007
Hi Paige,
Your point is valid and applies to markets all over the country. So often, sellers think that they can price higher and come down later if they need to, or they think that buyers can simply make an offer for lower if the buyer thinks it should be priced less. Then, there are a few sellers who are only willing to sell if someone is willing to pay their price. Certainly, that is any homeonwer's right.

Agents sometimes take overpriced listings and try to work w/ the seller to accept the market feedback and adjust accordingly. Other agents may simply list the property, knowing it is overpriced, and not invest much in the marketing of it. Most companies will not invest heavily in the advertising and promotion of an overpriced listing.

Our company pays for all of our advertising, and allocations for the ad budget are definitley gerared toward serious sellers.

As a buyer, sturcture you offer based upon what you think it is worth and submit comps along w/ time line adjustments in a market where properties are losing value. i.e. Comp is 4 months old, but that same comp may be 3-5% (you need local market expertise here...this is simply illustrative) less today.

Not all sellers will hear or see the documentation, even when it is sitting on the table in front of them. If that is the case, move on, or be willing to pay wha tthe seller wants. With large inventory levels, you can often find plenty of alternatives and simply move on.

Good Luck
0 votes
The Hagley G…, Agent, Pleasanton, CA
Fri Nov 30, 2007
Some buyers have unrealistic expectations when it comes time to sell their homes.Andunfortunately, there are some agents that will take an over priced listing. Why not contact the listing agent and ask the same question? He may have rationale.....then again, maybe not.
Web Reference:  http://www.cindihagley.com
0 votes
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