List in comp range or allow for wiggle room?

Asked by Cara, Rochester, MN Mon Feb 9, 2009

The comp range for our home is about $168-172,000. To ensure we have enough of a down payment for our next home, we CAN NOT take less than $170,000 - and can't pay the seller's closing fees. Is it better to list $4-5K over our absolute minimum that we'd take for our house (So $174,900) so we have wiggle room, or to list right in the comp range and not negotiate?

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Rick Meyer, Agent, Colts Neck, NJ
Tue Feb 10, 2009
Hi Cara,
There are different philosophies on pricing, especially in this Market !
Some say be the lowest price against your competion, but I relate Home pricing to another "Big Ticket" purchase such as a car....................
No matter how low you reduce the price on the Sticker, are you as a Buyer going to pay full sticker price, especially in such a strong Buyers Market ?
Best regards,
2 votes
Barbara Q., , Bergen County, NJ
Tue Feb 10, 2009
Cara- Sounds like you should rethink this move...No Realtor?

However, if you really need to sell...

You have to stimulate curiosity & interest...Dare to be different!
Asking price: $174,900
Offer a temporary interest rate Buydown for qualified Buyers.
If they pay full price, then you fund the 2-1 Buydown at closing: You net $171,413

With 5% Down: $8,750
Year 1: Buyer pays $746.54 (Principal & Interest)
Year 2: Buyer pays $842.37 (Principal & Interest)
Year 3-30 Buyer pays $943.95

We can show that they are technically paying $140,834 for your home in the first year
and $157,789 the second year...This helps them to ease into homeownership comfortably and confidently.

Please let me know if you need help.
Good Luck!
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2 votes
Belinda Arro…, , 02038
Tue Feb 10, 2009
Unfortunately in this market, you need to list at least 10% lower than $168,000. The market is what it is. The upside is, as a buyer for a new home, you will also have the advantage of buying for less than market value. If you do not need to move, my advice is to stay put,
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2 votes
Cara, Both Buyer And Seller, Rochester, MN
Tue Feb 10, 2009
Just to clarify - we do have a Realtor. I just have a ton of questions and like to get multiple answers. Also, we don't HAVE to move, so we can be picky about accepting offers. If we don't get our price, we'll just stay put.
1 vote
David Chambe…, , Saint Petersburg, FL
Tue Feb 10, 2009
There is no wiggle room, hold on to your house or price it to sell. Otherwise you may waste a year of your life trying to follow the martket.
1 vote
Lenny Frolov, Agent, Brooklyn Park, MN
Mon Feb 9, 2009
To be perfectly honest if the comp range you list is correct you have a tough position to be in. If you list above the comp range you will most likely not get any showings and therefore no offers. If you list on the lower end you will most likely get showings and maybe an offer, however in my experience most buyers WILL want some sort of negotiation. Thats why I think you may be in a tough spot. I would say list as low as you can and hope for a buyer that is willing to pay your full price.
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1 vote
Bill Eckler, Agent, Venice, FL
Tue Feb 10, 2009
Hi Cara,

This is a conversation you should be having with your real estate professional. Our recommendation is it's important to get a real understanding of the local market. Because of the stiff competition offered by "short sales" and "foreclosures" these are not times to be playing games with pricing.

Homes that are selling are priced, in step with the real estate market, offering buyers a value that attracts their attention. Agents will tell you how critical it is to have listings priced right immediately. Once a home sits around for a while it loses it appeal and is shown less and less.

Price it right and sell it.
Good luck
0 votes
David Chambe…, , Saint Petersburg, FL
Tue Feb 10, 2009
Maybe is you could find an agent like Barbara you could make this sale happen.
0 votes
Keith Sorem, Agent, Glendale, CA
Tue Feb 10, 2009
Buyers are looking for value. The homes that offer the most value will sell in the shortest time for the highest price.

I would strongly suggest analyzing your move, both from the selling end and purchasing end. The points I would study carefully:
1. What can do you do to have your home project the most value? Comps are comps, how can you make your home STAND OUT when it hits the market?
2. Look at the comparables VERY CAREFULLY. I'd identify the homes and go look at them so see exactly how good your competition is.
3. Analyze the new home purchase/move process. You do not reveal the net estimated proceeds, but in this economy I am amazed that you are able to get a Realtor to provide with an estimate within $2,000, plus or minus. that is less than one percent. What happens if they are WRONG?

Good luck.
0 votes
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