Home Selling in 47960>Question Details

Sarah Morgan, Other/Just Looking in Monticello, IN

What would you price my house at to sell in todays market?

Asked by Sarah Morgan, Monticello, IN Thu Jun 13, 2013

Hello! I'm thinking of listing my house for sale but I'm not sure what to price it at. I've done a little digging, talking with realtors and found out that most of the houses in my neighborhood have been listed in the $80's and sold closer to between $76,000 to $65,000. Like most people we still owe on it and can only go so low with our asking price. $72 to be exact. (this would leave us walking away with only $5,000 in our pockets and yes I've figured in an agents commission) What would you list at to get $75,000 to $72,000???? How much over what you really want should you list? I'm looking for exact numbers and opinions so please feel free to tell me like it is. THANKS!

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A home is worth what someone is willing to pay for it; it doesn’t matter what the seller needs or potential buyers can afford to spend. Market conditions do matter as does the immediacy for a transaction to take place. In setting a price, it is in the seller’s best interest to focus on the current market conditions....
1 vote Thank Flag Link Thu Jun 13, 2013
LISTING PRICE
Understand that the LISTING PRICE has one primary objective, to attract attention: It is not intended to be set in stone, and in many cases it is not even a good guideline toward the SELLING PRICE.
Some Sellers believe that by setting the LISTING PRICE high, they can always come down, and people will make an offer anyway: WRONG! Buyers will just bypass the property and look at houses that are within their price range. And six months from now, the Seller will slowly start lowering the PRICE, (this is called “chasing the curve”) and Buyers will be asking the question; “What’s wrong with that house?” and “Why has it been on the Market so long?”
Other Sellers set the LISTING PRICE low, to attract multiple offers. (The correct strategy.) We are asked; “Aren’t you obligated to sell at this price if someone offers it?” The answer is probably not; for that to happen, you would first have to have only one offer, and secondly, the offer would have be exactly the same, down to the smallest detail, (please discuss this with your Realtor).
Another thought; Buyer will search for potential properties by groups; for example, $400,000 to $450,000, and $250,000 to $300,000. If your house is priced at $460,000 or $310,000, the Buyers will never see it. (something else to discuss with your Agent.)
Different Banks have different philosophies about pricing their properties: You cannot draw any conclusions without a good analysis.
Have your Realtor do a CMA, (Comparative Market Analysis) to help you determine your Offering Price. It is the surest way to determine the Market Value of the property.
1 vote Thank Flag Link Thu Jun 13, 2013
There is no way to determine a market value or a list price on a house without seeing it and then doing a Market Analysis on the house. In Monticello, it is still a buyer's market meaning there are more house for sale than buyers to buy.

Unfortunately, what you owe and/or what you want to walk away with are irrelevant. Your home is only going to sell for what a buyer is willing to pay for it.

I would be glad to do an analysis on your home, but I'm not going to tell you that you can get a price if I don't think you can get that price.

John
0 votes Thank Flag Link Thu Jun 13, 2013
Your analysis isn't complete enough.

Beyond that, that range of sales prices is huge. The house that sold at $76,000 was clearly quite different than the house that sold for $65,000. In that general price range, you need to calculate a number--based on comps--within a couple thousand dollars.

Another odd thing: Those are large drops from the listing price to the sales price. Double-check your numbers. I really wonder if houses listed for, say, $85,000, actually sold for $70,000.

Next problem: It really doesn't matter what you need or what you owe. Buyers don't care. What they care about is what the house is worth. Same with appraisers. They're going to look at the comps, not at your outstanding balance.

So, you need to determine what the house is really worth. Let's say an accurate calculation (just making this up) is $72,000-$75,000.

Now take a look at the list prices of houses that sold in that price range. Determine how long it took them to sell. It's likely that houses priced around $75,000 sold pretty quickly for close to the listing price. Houses priced in the $80,000s probably took longer to sell and took more of a price hit.

You probably want to strike a balance--selling fairly quickly but not leaving any money on the table. An analysis of recent sales will tell you where that "sweet spot" is.

In our hypothetical example, it might be $76,000 or $77,000.

But that's the sort of analysis you need to do--and the sort of analysis your real estate agent will do.

However, I can't give you an exact number without knowing those additional details.

Hope that helps.
0 votes Thank Flag Link Thu Jun 13, 2013
Thanks!
Flag Thu Jun 13, 2013
Don Tepper, Real Estate Pro in Burke, VA
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