My home has been on the market for only 18 days, I have an offer 91% of asking price should I take it?

Asked by Moving On, Worcester, MA Sun Oct 17, 2010

I put my home on the market on Sept 30th, had two open houses and 2 showings accompanied with buyers agents, one showing resulted from the open house; another from a call from a buyers agent that resulted into a final and best price of $200,000 ( after 3 rounds) on a $219,000 asking. My Realtor has strongly urged me to take this offer as he says it will probably be the highest and best; based on his experience, the number of showings and our local market. His CMA price range was from $197,000 $215,000. Most likely a $208,000 selling price. I need $208,000 price to move on for a down payment my next property. My agent has also held a brokers open and had 15 visiting brokers and the feedback was change the price to $199,000 ( which I just think is just to early in the process). My agent also had a licensed appraisal service do a home appraisal resulting in $195,000 which I do not agree with. I have been checking properties on Trulia and think it is worth more, WHAT SHOULD I DO??

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11
Robin Silver…, Mortgage Broker Or Lender, Garden City, NY
Sun Oct 17, 2010
There is an old saying in real estate, your first offer is your best offer. When your house is new to the market, and people have been looking for a long time, and they love yours, they will make an offer.
I am not an agent, but I sold a house of my own. The brokers all came in and told us the house should sell for $299,000. The first offer I got was for $270,000, and we turned it down. Close to a year later we finally sold it, at $245,000. You just never know, and if you really need that money for another house, and you turn this down, the other house might not be available when you get that higher offer.
1 vote
Coy Asbury, , Roanoke, VA
Tue Mar 20, 2012
You may take less right now on the sale, but if you are buying another home it 'should' make up for it. I think the determining factors are how quickly do you want the home to sell. The appraisal was a result of listings that were in your area. Also, your agent has access to the MLS, which will accurately show what homes have actually sold for. An active listing is hard to go by- they have not sold yet, and may not.
0 votes
PS, Home Owner, Florida
Tue Mar 20, 2012
Ask both realtors to reduce their commission fees. My father did this when he sold his home and at the end of the day, it was a win, win for everyone.
0 votes
Ken Lambert, , Exeter, NH
Mon Nov 15, 2010
Hi- If you haven't yet- you should take it/ have taken it. OR, you counteroffer for a few grand higher and they will most likely take it.
Good luck,
Ken L.
0 votes
Keith Sorem, Agent, Glendale, CA
Sat Nov 13, 2010
Moving On
You have some great answers. But you're probably thinking...these people might be right, but how do I KNOW FOR SURE?

Let's take a reality check.
1. Market value is what a willing and able buyer will pay for your property. The price you paid, how much you owe, how much you need for your next down payment, do not matter.

2. Look at the link below. Your market is decliing at a rate of 7.4% over the past twelve months. For you, that means base on $200,000 you are losing (7.4% divided by 12 months equals 0.6% per month. 0.6% time $200,000 = $1,300 per month you lose by "waiting" to find a better offer.

Let me put this another way.

My standard is 10-12 showings or one offer in two weeks or we reduce the price by 3-5%. You are on the market six weeks, and all you have to show is ONE offer, based on multiple showings. Just where do you think the other buyers are going to come from?

The biggest truth you need to learn is this - the BEST response from the market occurs in the first two weeks. If you have an offer AFTER four weeks, and it is a little low (You want $208K, they are offering $200K, that is an $8K difference, of about 4%). In a declining market, your home has lost $2,600 since you put it on the market, so that probably means that your agent is getting you MORE than it's worth. It still needs to appraise, so you are not out of the woods yet....ask your Realtor about THAT!

Take the offer and be happy, pray for a back up offer.
0 votes
michele cado…, Agent, Brooklyn, NY
Sat Nov 13, 2010
In this market I would say take the offer and move on. Especially since you had the property appraised.
0 votes
Thomas Schwe…, , New London, NH
Fri Nov 12, 2010
I would also agree with your agent. In a buyers market like we have now, typically the best offers will come first. When I list a house in this type of market, I am trying to get offers as fast as possible. Since the market is declining, the longer it takes to sell a house, the lower the sales price could be. I have seen many cases in the last few years that sellers have refused early offers thinking that they could get more, to end up settling much lower that those early offers.

Good Luck,

Tom

Tom Schwendler, Realtor, Partner
Colby Real Estate, Inc.
New London / Warner, NH
0 votes
The Shore Te…, Agent, Winston Salem, NC
Sun Oct 17, 2010
All indications from the professionals that you mention are indicating that 200K offer to be a valid one, from the listing agent, to the visiting brokers, to the appraiser. The fact that a seller needs a certain amount in order to move on does not really dictate the value, even though we can all empathize. If you have an approved buyer and can sell quickly, you may want to rent for awhile and save the difference while you look and negotiate a great deal for yourself!
0 votes
Christopher…, Agent, Methuen, MA
Sun Oct 17, 2010
Have you tried counter offering to see if you can get closer to your target sale price?

If this offer is solid (pre-approved buyer with terms and contingencies that you are okay with) then you should think long and hard about trying to make it work. You have to ask yourself if you want to loose the buyer over 8 grand. In this market a qualified buyer making an offer on your house is a good thing and if you let this one go you don't know when another qualified buyer will be along.

With that said, if it doesn't make sense for you to sell under $208k then do your best to negotiate and if it doesn't work, then don't sell and stay in the house. Getting second opinions and BPO's on the market value is fine, but keep in mind that the actual value of your home is the highest price that all willing and able buyers are willing to pay at a particular point in time. I know it can be difficult to keep emotions out of your decision making process, but you really have to try to put emotions aside and make the best decision possible for YOU in this situation.

There are two outcomes possible with this buyer. You can negotiate and sell at the best price you can negotiate or let the buyer go.

Good luck.
0 votes
Kenneth Barg…, Home Buyer, Nashville, TN
Sun Oct 17, 2010
Congratulations on receiving an Offer that you are considering only after a few weeks on the market. You should only accept the Offer if You feel comfortable. Your Realtor appears to be providing you data and comps to help you make this decision and he is guiding you with his experience in the real estate industry. I would caution that you may need the $208K but an appraisal will be the determining factor. The $195K value performed by a licensed appraiser fell short of your expectations but it will be the appraisal performed after contract status that will move you forward (or not) and clear the contingency. The reallity is the most recent transactions will be used during this process and there appears to be a consensus of value already forming per your description from real estate professionals. I wish you the best and Congratulations on receiving this Offer so quickly!
0 votes
Scott Godzyk, Agent, Manchester, NH
Sun Oct 17, 2010
You need to hire an independant apprasiser, not your agent. A BPO shows what houses have sold for in the last 3 months and what houses are currently listed for that are in competition to your home. You need to take the sales comps and narrow them down. Adjust for what you have or dont have that the comsp have, use the comps closest to your home, use the comps closest in being the same style, same size, same condition as yours. You should have been able to get that value down within a narrower margin, Usually no more than 10k. Such as the highest comp should be your asking price and the lowest comp being what you will probabily receive in this market. Where you are listed another agent can not really interfer with your listing agent by completing a bpo for you so you need an appraiser and instruct them to not look at what you are listed at and dont tell them what your offer is.
Web Reference:  http://www.ScottSellsNH.com
0 votes
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