Would it be worth listing at a much higher price than recent comps?

Asked by Bay_area_ll, Oakland, CA Tue May 1, 2012

I need to get about 40% higher than recent comps when I sell. there is like no inventory since so many recent comps are short sales. Think it Would be possible? Im sure that there are buyers looking for a house like this but the current prices are unrealistic.

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95
charles butt…, Agent, san jose, CA
Wed May 2, 2012
BEST ANSWER
Thank you for your question.

Your house will not sell for more than the current market value.

If you need a value that is 40% more than the current market value, I recommend that you wait until the market has appreciated 40% and then put your house on the market.

If you put your house on the market at a price 40% more than the current market your house will rack up a large number of "days on market" or "DOM"

The "DOM" becomes part of the listing history of your house. That stays on your record for 10 years.

If you have a large "DOM" that stigmatizes your house. I and most of my colleagus look at the listing history of the house. If we see that at one time that house was on the market and did not sell, that is a big red flag to us that indicates that there may be something very seriously wrong with that house and I and many of my colleagues will not show a house to our clients if we suspect that there may be something seriously wrong with that house

Even in a hot market like the one that we are experiencing now, an overpriced house will not sell.

I recommend that you do not stigmatize your house with a long history of "days on market" when it did not sell.

I recommend that you wait until the market has appreciated to the value that you want, and then place your house on the market. You will get more money for your house, and much better results if you will do that..

Thank you,
Charles Butterfield MBA
Real Estate Broker/REALTOR
American Realty
Cell Phone: (408)509-6218
Fax: (408)269-3597
Email Address: charlesbutterfieldbkr@yahoo.com
DRE#00901872
11 votes
Thank you. Pricing your house to make killing is dishonest at the best.

That goes for half a million house of 900 feet in Victorville just the same as for one of realtors around us who routinely lists the houses 20-40% higher than comp- and they never sell at listed prices.

Unless you are in an area where the Chinese or mafia are buying, few people are stupid enough to buy better house at their expenses.
Flag Thu Aug 18, 2016
I think it's unfair to include "short sales" in comps because 9 times out of 10, the house is selling for below value. If you have a good realtor, they should be pointing out to their buyers which comps are short sales.
Flag Thu Aug 18, 2016
I agree with JLawrence, the house has to appraise for the purchase price so that is a good place to start.
Flag Thu Aug 18, 2016
I agree. If your neighborhood is in demand and there aren't a bunch of houses for sale, you can get more. I am tired of lazy realtors wanting that quick sale. Their job is to generate buzz and interest in your home. I was thinking about selling and a realtor called and tried to downgrade my home because I don't have a built in pool. She obviously did not get the listing. I say sell the home yourself and use a mortgage company to do the paperwork. That way you will usually get the price you want and not have to pay the lazy realtor fees. I'm sure there are good realtors out there but they are far and few between.
Flag Thu Aug 18, 2016
We priced our house twenty thousand higher than the comp because we were confident that our house was worth more and we were right , it sold in a little over a week ! You better be sure about your price as Mr. Butterfield states you wouldn't want to have a large DOM .
Flag Thu Aug 18, 2016
I live in a historic district in a very nice area, but my house (2260 sq ft) is one of the 3 largest in our area. We've put over $70,000 in upgrades (plumbing, windows, copper pipes, painting inside neutral colors, etc) to the house while living here for 12 years. My realtor says my house is very hard to comp since it is so unique. The 900 sq ft houses are selling for $325,000; the 1400 sq ft homes are selling for $399,900; I have my house listed at $499,800. Everyone who lives in our area and has seen the house knows that's a good price. However, when the websites comp it, they comp it using much smaller houses. I know this because when we put the house on the market, one website comped it at $531,000 and now it's valued at $480,000. The sale of the smaller houses are causing this to happen.
Flag Thu Aug 18, 2016
Just because the property sits on the market and dose not sell, dose not mean that something is wrong with the property. The market is some what strange right now, and a lot of agents are wondering what is going on. I have a property that is lovely, and in great condition and it is sitting a while now,. a contract did come at the on set of the listing, however the mortgage company was greedy and was asking for a 4% closing cost. And that killed the sell. what the agent should have done is find her buyers another lender.
Flag Thu Aug 18, 2016
I agree with Janet, that is ridiculous to say that there is something seriously wrong. Very short sighted and not very intelligent to say. Maybe it's just that the market doesn't allow the price at the time. So try again when it does! I think that comment was very prejudiced.
Flag Thu Aug 18, 2016
Some of the problems most of which are psychological.

#1- If I want to sell my house today or 40% more than current value.today only 1% of the buyers would be able to make that work but they're not going to want to part with their CASH. For the purpose of buying an overpriced home

#2- If I have to wait 4 years for it to become worth 40% more I'm not going to want to sell it at that time at that price because I'm going to want 40% more than new current market.

#3-If I do wait the 4 years and sell at the current market price which allows you to capture the theoretical 40% more. The realtor will make more you will paid taxes for 4 years utilities for 4 years and all other expenses for 4 years so that you could capture this theoretical 40% more and then you go looking for a house in a market that's more expensive anyway and I'm forced to pay a premium for my replacement home so I've gained nothing.If I do wait for you

#4- Even if you have tons of cash and you buy a replacement house now in a down Market. and sell your existing house 4 years from now In a up market because of expenses you still lose.

#5- If I was going to sell my house right now in this market I would compare other similar properties and what they're currently being listed for, (not necessarily what they're worth) And I would list my house for the same price minus 100% of the Realtors fees,1 years worth utilities a 1 years worth of taxes and an allowance for all the things the Realtors would end up telling me a year from now that needs to be fixed because it's not selling, example paint, carpet,upgrades, blah blah blah . this would create a bidding war. And the house will be sold probably within a week. (sale by owner) (no realtor needed).
And if any of the customers ask how I came up with the price and why it's so low I would gladly share that information and tell them my formula.

#6- Then I would have the cash to go out and get a good deal on my new replacement home in the same Market that I sold in and not in an inflated Market.
Flag Thu Aug 18, 2016
Retro guy " But just because someone lists their home and it doesn't sell in a longer period of time doesn't necessarily mean there is somthing wrong with it"

Absolutely not, you are correct, but that is the perception of many buyers. Frankly when people ask me "what's wrong with it?" because it's been on the market a long time, I wonder what they THINK is wrong with it? Haunted? Crack house? LOL. :)
Flag Thu Aug 18, 2016
I would trust an official appraisal done by a reputable company and use that. You can get them done by yourself for a fee, but that should determine your price you list at. At that point you could probably go a little bit higher for some bargaining room for low offers and counter offers. I'm not a professional but I do work for a Credit Union-not in lending but know enough basic information. Why hasn't anyone recommended this?
Flag Thu Aug 18, 2016
This is an intersting question. I live in Virgina and there are many homes for sale in our market and they move pretty quickly. From my experience asa homeowner, I agree with the Agent from San Jose about DOM. But just because someone lists their home and it doesn't sell in a longer period of time doesn't necessarily mean there is somthing wrong with it. Homeowners have the right to put whatever price they want on their homes regardless of comparables. I understand the concept of "stigmatation" and not wanting to show a home with a long DOM, but at some point this gentleman's home will sell; it is also about "supply and demand" and "location". I'm not very aware of the San Jose area but the entire state of California is higher cost for the most part but it has good climate and younger folks gravitate to the sun and fun west coast. The gentleman who is trying to sell his home for 40 percent higher than comparables has the right to do so, bottom-line--help him-but no stigma please
Flag Thu Aug 18, 2016
As a realtor I would think you would look at the house yourself before making a judgement that there is something wrong with it because of the DOM
Flag Thu Aug 18, 2016
Yes, but that begs the question of what the 'market' is, and whether the comps are appropriate. I've had several experiences in which agents used inappropriate comps that resulted in below market estimates of value. At the end of the day, the seller needs to use their own judgement and be careful about automatically accepting the advice given to them by agents.
Flag Thu Aug 18, 2016
We had people that wanted the house so much that they offered a cash deal for more than our asking price...but we were under a contract..so you never know
Flag Thu Aug 18, 2016
Elena Talis, Broker, Palo Alto, CA
Thu May 3, 2012
I have to be honest - no one cares about what you need to get for your home. You have to either accept the current market situation or keep the home. There is no way around it....
12 votes
Shortsales are usually overpriced- the banks wants its unpaid loan plus fees for a dilapidated ruin that they gave unjustifiable loan for and no one cared for in years.
It is therefore unfair to even look at them.

Yeah, Jackie, bubbling the prices to fit the greed of seller had gone.

How much did you want to make? 400%?
Flag Thu Aug 18, 2016
This sucks- I'm starting to feel (discouraged. I live in Oakland and really want to move. Last year in the earlier months-, homes were selling at the price that I want to list the house now. Now 4 months later, the homes that are coming up are $70k (roughly) less than what I want to sell it for. I'm hoping the market increases next yr but now I'm confused on how come neighborhood homes are selling less than the ones that sold in the area ( al lot less). Does anyone know?
Flag Thu Aug 18, 2016
That's the truth
Flag Thu Aug 18, 2016
Troy Mire, Agent, Chalmette, LA
Thu Aug 18, 2016
I've read some of the comments and most seem to be missing the point that most of the recent comps have been short sales. Therefore, not comps at all. I agree with Jlawrence that an appraisal would be the seller's best bet to see what the true value is at this time and price accordingly. Speaking with a local Realtor who could weed out the short sales and find true comps could save you the cost of the appraisal. A seller should never price more than a small percentage above market value.

Shame on any agent that doesn't show their client a home just because of DOM. It should be the buyer's decision for which homes to view. If there is something wrong with the home, that could be used to negotiate a cheaper price. Sometimes homes don't sell right away because the seller has placed limited showing restrictions, or poor agent marketing. It is our job to find out why the home has been sitting and use that to our client's advantage.
6 votes
Troy, thank you for saying this. I am an agent too and was getting frustrated on the responses. It certainly does make a difference when most of the comps are short sales.
Flag Thu Aug 18, 2016
I agree with the under pricing strategy. I under priced a house I sold by 2.5% verses what our agent said it was worth, and even with only two buyers, who both came in with first bids at what our agent said it was worth, we ended up selling it for 7.5% over list.

The only risk of this strategy is that when buyers are paying a premium, they will be asking for repairs, which could erode your gains and also create risk in your sale (because work may have to be completed). Always suggest a price reduction for the work rather than doing said work as part of the sale. That way, you don't have the risk of unexpected issues that an come up when making repairs.
Flag Thu Aug 18, 2016
I agree with Troy! Hardly anyone is picking up on the fact that his comps are short sales. ...Is not a comp! I would follow Troys' advice!
Flag Thu Aug 18, 2016
James Mauldw…, Agent, Saratoga, CA
Tue May 1, 2012
No! A reasonable buyer will not pay 40% more than the comps. Even if they love your house it will have to appraise. 40 % above market value will not happen. So in reality you are looking for an all cash buyer who loves your house so much they will pay 40% more than a reasonable buyer will pay. Very unlikely.

Jim Mauldwin
Intero Real Estate
408-863-3020
DRE # 01125280
6 votes
According to ucla anderson the median price in CA will be up 49% by 2016 so its only a matter of time. But if someone wants it now i would sell it to them.
Flag Tue May 1, 2012
John Juarez, Agent, Fremont, CA
Tue May 1, 2012
“I need to get about 40% higher than recent comps when I sell."

Buyers do not care what you need.

If I told you I needed $14 for the $10 bill I was offering you, would you give it to me?

“UCLA is forecasting CA median price will be up 49% by 2016 so it’s only a matter of time. But if someone wants to buy my house now I would sell it to them.”

I know that you do not expect someone to pay you today what your house might be worth in 2016.
4 votes
Robert Lei, Agent, Cupertino, CA
Sun May 6, 2012
If you list your house 40% overpriced, then very few people will even bother to take a look. If not many people even look at it, you will not have a many buyers to bid against each other, if any buyers at all.

I would actually do the opposite. Price it lower and create a bidding war. Your listing will get max exposure and go up to the max price the market will bear. In just one weekend you'll see whether you got what you wanted. If you don't get what you need, you quickly take it back off the market and wait for a better time to put it back on.
3 votes
Short sales are not comps. I would not hire you.
Flag Thu Aug 18, 2016
Be careful of this tactic in North Carolina. If you get a full price offer here, you either sell it for that price or get sued for damages!
I agree with the advice given by Charles Butterfield, above.
Flag Thu Aug 18, 2016
Michelle Gon…, Agent, Los Alamitos, CA
Sun May 6, 2012
Even if there was a buyer that wanted to pay 40% more than market value for your home, the bank would not loan a buyer more than the home is worth. You mentioned the recent comps are "short sales". Were you aware banks today want fair market value for their short sales? If there are short sales for sale in your neighborhood, there is inventory. Buyers are buying short sales just like any other homes on the market. Do you owe more than your house is worth? If so, you may be a candidate for a short sale.
3 votes
H.e.lassen, Home Owner, Brielle, NJ
Thu Aug 18, 2016
Definitely not. If you want the best price the market will give you, you have to price well from Day 1. Once a house sits on the market and gets stale, you can't recover from that stigma. You'll end up lowering the price or removing the listing, which means you've wasted time and probably some money too. Think of listing your home as throwing a rock into a still pond. You'll make a big splash at first, new inventory! As days go by, the ripples dissipate and eventually disappear. You need buyers attention and interest when you make the splash, because that's your best shot. Best of luck to you!!!
2 votes
Tim Page, , 99037
Fri May 4, 2012
It really depends if the comps are similar to your home. If you have a home that is non-conforming, larger homes, more square footage, then you can go outside and find similar comps. Find someone that really understands how to select comparable sales. Price your home accordingly. I've found that in some markets, the median price is $160,000, but the larger homes are selling for $200,000.....or homes with outbuilding........or homes with more updating.........or homes that offer the same design and appeal as your home.

Now if all of the comps are the same in your market area, it will not work. and if you do find a sucker, it will not get past the appraisal.

So it will depend on the comps.
Web Reference:  http://increasehomevalue.org
2 votes
and what if the house you're selling has no comps?
Ours is on a river and it's not in a flood plain. Many here are in a flood plain.
Flag Fri Aug 19, 2016
Allison Fish…, Agent, Ann Arbor, MI
Thu May 3, 2012
Homes sell for what they are worth these days. If your information is correct, it would not be worth listing the home. Buyers will have several other homes in your area to choose from. Also, it would be very difficult for a buyer to obtain a mortgage for that much if the house appraises 40% lower than the asking price.
2 votes
Laura Coffey, Agent, Santa Clarita, CA
Tue May 1, 2012
40% over market value is very unrealistic. As mentioned below you would need a buyer paying all cash that got so emotional they wanted your house at no cost and had an agent so desperate for a commission they didn't tell them they were crazy for paying that for your house.
I would never let my buyer pay that much over list for a house.
2 votes
Sally Blaze, Agent, Eugene, OR
Tue May 1, 2012
Bay area II:
A few comments for you...

Lots of sellers "need" to get more for their home than what the market is willing to pay. Hence, there are many short sale transactions because the seller is having to sell the home below what is owed on it.. Those homeowners without a hardship can not afford to sell their home and so are staying put. This is contributing to the low inventory.

If you were to get 40% above current comps, I would be surprised. Those financing the home would not get an appraisal at this higher price. Those not financing are, hopefully, enlisting the services of a real estate agent who understands current market prices.

And, if you expect someone to pay 40% above market for your home, are you willing to pay 40% more for the next home you buy?
2 votes
i am willing to pay 40% more for the house I buy since im moving down the proceeds will be enough to buy a smaller house
Flag Tue May 1, 2012
Erica Glessi…, Agent, San Jose, CA
Tue May 1, 2012
I recommend you price lower than the recent comps by a good 20% and initiate a nice multiple offer scenario (i.e., feeding frenzy). This will push the market to its limit, and you can discern if the amount offered is enough to help you move. Regardless of your need, the buyer has the $ and determines the market value. Good luck!
2 votes
My NC Homes…, Agent, Chapel Hill, NC
Sun May 6, 2012
I'm sorry but based on what you've written, your the one who isn't being realistic. What you need to get has absolutely no bearing on what your property is worth in today's market. Sellers never set market price, nor do Realtors. The only person who ever sets market price is a ready will and able Buyer. This isn't just for now, but forever. There is never a free market that operates differently. Even in the most absurd Sellers market, Sellers do not set prices, Sellers markets indicated temporary insanity among buyers who bid one another up, even then the seller has nothing to do with market price.

Any agent who takes your listing at more than 5-6% above market dictated pricing is honestly nothing more than a foolish agent with little or no experience and unfortunately there are plenty of them. However you and they are simply wasting time.

Sellers need to understand and accept market data, to do otherwise is simply delusional. The same applies to Buyers. Making an offer that's 20% less than the data indicates a home is worth is a waste of everybody's time and generally counterproductive. All it accomplishes is to start a negotiation by pissing off the other side.

For decades I've listened to Realtors go through incredible mental and linguistic gyrations as they deal with their buyer and seller clients. Most of these Realtor either don't last more than a year or two or hang around forever earning very little money and often harming their clients more than they help. It's embarrassing and frustrating to the true professionals out there.

Real Estate isn't really all that complicated. Every question and problem has the same answer, "Money." That's all there is. Then there's two follow up questions and deals either get made or they don't. Those questions are, "How Much?" and "Who Pays?" A Realtor primary job is to be an expert in thier specific market. They need to be able to accurately analyze the market data and present it clearly to their clients/customers. Often times one side or the other doesn't like the data (Just as you don't like the data in your area) Regardless the data is what it is and assuming that you or your property are exempt for some reason is absurd.

I'm sorry you find yourself upside down with your property. If you don't need to sell now then my advice is don't. Over time prices will absolutely come back up in the Oakland area. If you do need to sell now, they I'm afraid you've got to face the fact that you're going to get 40% less than you feel you need.
1 vote
Although what you say has extreme merit. I disagree. There are exceptions. A house that's pristine has additional value. A pool, six car garage verses a two, bonus room verses none, over-the-top landscaping, location, cul-de-sac, etc. All of this has additional value. Comps aren't always accurate. Then there's the predisposed fear that's in the hearts of all real estate sales people to sell at a price that will sell quickly. I'm a salesman by trade. I went to real state school. I never pursued that profession after all. But I have sold, on my own two pieces of real state, one commercial and one residential. I sold them for higher that market because I am a salesman, not a commodity broker. There are exceptions to every rule. Having a real state license does not and never will make you a salesman. I suggest you try to sell your house high. But sell it, don't just put it out on MLS and wait for someone. Pitch your home, stage it, show and sell, sell, sell on the differences.
Flag Thu Aug 18, 2016
Terri Vellios, Agent, Campbell, CA
Tue May 1, 2012
Bay_area_II

To chime in, I agree with Erica, and the other answers. What you need isn't going to reflect in what a buyer is willing to pay. Even though inventory is low buyers are still very cautious on what they pay for a house because they don't want to repeat history. We are also seeing problems with appraisals.

The risk in pricing your home grossly over market is who is going to see it? Buyers have an expectation on what price they are going to pay for the size, location and amenities. They are going to ask, why is it so high? Then they will wait.

If I were consulting with you I would have a lot more questions for you such as; where are you getting the market value, why you need so much, plus what is your ultimate goal. When I have a clearer picture together we can strategize on how to achieve your goal. If not today, tomorrow or when the market and your goals are more closely aligned.

I am happy to see you ask such an important question, because as Mark said, it could cost you later.

Have an amazing day!
Web Reference:  http://www.terrivellios.com
1 vote
Steven Ornel…, Agent, Fremont, CA
Tue May 1, 2012
Bay_area_ll:

Quite simply, unless you find an all cash Buyer willing to pay you Market+40% you and the Buyer are going to run into a market Appraisal deficit of 40%. I doubt any Buyer would be willing to subsidize such a deficit.

-Steve
1 vote
Diane Riel, Agent, San Jose, CA
Tue May 1, 2012
The pricing is important and buyers make the offer based on the preceived value of your property as it relates to the other properties for sale. Also another important piece is recently sold comps. It is not based on what you need personally for your financial position, but what the "market will bear." If you place yourself in the shoes of the buyer, who always wants the best value for their dollar and look at the other listings and then view yours, ask yourself, "how much more would someone be willing to pay for my property?"

It is important to "price to sell versus price to sit". Your sweet spot is the first 30 days on the market. and it is important to get a good flow of buyers through your property. If priced too high, buyers will view other properties on the market instead.

Diane Riel, broker/Owner DRE #01350400
Realty World - The Sterling Group
(408) 718-8485 direct (408) 608-1797 cell
1 vote
Mark Burns, , Cupertino, CA
Tue May 1, 2012
That's a good point but keep in mind that areas that have suffered from a high percentage of foreclosures and short sales are more likely to have that problem again in the future. A savvy buyer may shy away from areas where there have been problems in the past because there is more inherent risk.

Your point of buying a non-distressed property is correct in that it will have less problems. The next step up from there is to buy in an area that has a low percentage of properties being underwater and has had less foreclosure activity. The morbidly curious can visit this site and type in a zip code to double check.

http://www.sfgate.com/webdb/homepricesdrop/?appSession=15017…

Mark

Mark Burns, Realtor
Coldwell Banker Elite - Top 2% Worldwide
President - PRDS, Contracts and Forms for Silicon Valley Residential Real Estate 2008-2012
DRE #00896552 Licensed since 1985
Over 600 Homes Sold in Silicon Valley
Web Reference:  http://www.markburns.com
1 vote
Mark Burns, , Cupertino, CA
Tue May 1, 2012
Are we talking about listing a $500K house for $700K? Is your 'need' because you are underwater unless you get that extra 40%? Are you counting what is will cost to sell (commissions, etc.)? Would YOU pay 40% over comps for your house?

Things to think about. After you list it and it doesn't sell, keep in mind that the internet never forgets. You may be shooting yourself in the foot when you want to be more realistic and get it sold; whether that is 6 months from now or 6 years from now.

Don't be that house in your neighborhood that everyone knows is grossly overpriced. It may cost you later.

Mark Burns, Realtor
Coldwell Banker Elite - Top 2% Worldwide
President - PRDS, Contracts and Forms for Silicon Valley Residential Real Estate 2008-2012
DRE #00896552 Licensed since 1985
Over 600 Homes Sold in Silicon Valley
Web Reference:  http://www.markburns.com
1 vote
Norman Aless…, Agent, San Jose, CA
Tue May 1, 2012
Well you pretty much have what us agents feel about 40% over comps. Erica gave you good advice as to how to get the max amount for your home. You have to remember that BUYERS set the market NOT sellers, I can't count the number of times that sellers have said I need to get this amount from a property, I'm sorry :( but what you need to get and what you will get are 2 different things.
If you list it at 40% over it will just sit there, I would not recommend it.
Sorry to sound harsh , but unless you have an all cash buyer as stated earlier or your home is fabulously upgraded, in a great school district, on quite street with good neighbors it is not going to happen.
At your service,
Allyson
408-705-6578
allyson@homesbyallyson.com
Certified Distressed Property Expert
1 vote
Fabulously upgraded doesn't matter. Our pristine home on lake was totally remodeled with top-notch workmanship. Granite, marble, new AC, new furnace, newer 3D roof, etc. Our 30-year veteran realtor listed for $224,900 and was very excited. Lots of interest--Purchase Agreement for $210k signed day after listing. Our CU had appraised at $205k for home equity loan in June. Buyer's CU appraised for $186k ($9k under tax appraisal). Buyer's CU would not allow another appraisal nor would they review or update other CU's appraisal. Deal was shot. Appraiser used comps for much smaller houses in our immediate neighborhood. By the time he adjusted for square foot, he had no more percentage to adjust for remodeling,. Sheds didn't count, because they weren't permanent. 24x12 sunroom didn't count, because it didn't have a vent. Buyer chg'd CU's, 3rd appraisal was f$210k. It's been a nightmare! Market value is what buyer is willing to take & seller is willing to pay. Tell that to the CU's!
Flag Thu Aug 18, 2016
Jim Guido, Agent, Santa Clara, CA
Tue May 1, 2012
This is a good question and the answer involves a lot of variables that would be hard to cover in this forum. The best answer is for you to work very closely with the Realtor you choose to work with and
gather all the important data that is necessary to price and market you home properly. Raising the price over recent comps does not guarantee you will get higher offers than the current market and the buyer may have trouble getting it appraised at the sales price. If you get a cash buyer they may not want to over pay for the property based on their assessment of its value. Their are many more factors that you will need to consider before coming to an informed decision on pricing and marketing. Again this is best when done with the Realtor you decide to work with.

Best Regards,

Jim
1 vote
Susan Langen…, Agent, Doylestown, PA
Tue May 1, 2012
I believe it makes more sense and creates more activity with a quick OFFER if the listed price is aggressive and closer to market value comps!
We are seeing multiple offers come in as we aggressively market and price properties! Keep in mind we're still facing the challenges of the appraisal coming in at purchase price to secure the mortgage and to confirm in the Buyers mind that they have made a good investment!

Keep properties fresh and new...old listings raise many questions and as a result, will end up with a lower offer!

Bucks and Montco Counties in Pa., WE are seeing a good flow of qualified Buyers and nice activity with OFFERS getting to the table and closed successfully!
1 vote
Tim Moore, Agent, Kitty Hawk, NC
Tue May 1, 2012
Your problem is that even if you got the most unaware buyer to come along and offer you lots more than comps are showing as the value the lender that buyer will use is going to have an appraisal done to verify the value before they agree to the loan. The appraiser is going to see the short sales and any other sale that has recently been sold. When the appraisal comes back lower than the offered amount the deal will be dead and you will have no buyer because the loan won't happen. This is what has been happening and why home prices are so much lower. What Allan is talking about below is a cash buyer that does not have to get a loan and so does not have to get an appraisal, but many cash buyers do (or should) so even that might not work out.
1 vote
allan erps,A…, Agent, Pearl River, NY
Tue May 1, 2012
And if you list 40% higher than the current marketplace I believe you are unrealistic.... Only hope you would have is to get a ALL CASH Buyer and I consider that unlikely. Best of Luck
1 vote
Tinthelight67, Home Buyer, New York, NY
Sun Feb 19, 2017
We are interested in a house that's listed 260,000 however the same neighborhood appox same square foot and extra additions pool and garage are went for at 228,000 within last year and house has been on market since 2015 , they are wanting to keep all high end appliances take curtains & rods , she'd and kayak pool and cabinets rget out of garage is it a insult to offer 230,00?
0 votes
Travelpal808, Home Buyer, New York, NY
Fri Aug 19, 2016
I am living proof that it is possible. We overpaid for a house in a neighborhood that didn't have recent comps. The appraiser agreed with the high price due to the lack of comps and voila, we ended up with a nice but VERY expensive house. I was shocked the price passed the appraiser level but it did. We bid high because we had missed out on other homes in a hot market. I know we won't get near this price when we go to sell it.
0 votes
sharronames, Home Buyer, Paradise, CA
Fri Aug 19, 2016
Such a difficult situation - definitely depends on where you are selling and the only place where you can get away with it is in the bay area. but remember you have to attract cash buyers because a bank will only lend in the appraised value - so if you create a competitive situation you can create an opportunity for bikers to bid up the price and you will benefit from the higher than comp price since they are willing to use cash to make up the difference. DON"T get caught with a buyer who doesn't have the cash they will tie you up in escrow while you wait for an appraisal etc. and you will be missing out on strong buyers right for your home and situation. Hope this Helps... Sharron
0 votes
, ,
Fri Aug 19, 2016
I am not a Realtor but I have been in the Real estate industry for quite some time and I have NEVER seen a home sell for 40% above market. In some cases appraisers can exclude foreclosures or short sales from their report but if everything that is selling in a particular area then typically that is the market and that is what an appraiser would use for their report.

It is NOT uncommon for a home to sell at or slightly over list price in a hot market but again 40% is a stretch please note I am NOT a REALTOR or APPRAISER however I have been in the business over 12 years. I currently only offer loans in Florida so I suggest you contact a Real Estate professional in your area to determine if the comps you are using/finding are accurate.

Best of luck and God bless!
0 votes
Malnatik9, , Catonsville, MD
Fri Aug 19, 2016
The value of any house is what you can sell it for - regardless of what the realtor, Zillow, or an appraiser says, because all 3 are using inaccurate/unacceptable comps.

In a normal situation, looking at the price of surrounding homes is a good guide, but if the surrounding homes are all short sales or foreclosures, that skews the pricing way down - and ruins the market for all.

If you're 40% extra is based on having a superior home or property, buyers will notice that, and bid accordingly, but know that if they can save 40% by buying the house down the street in a short sale, you may have trouble getting them to even look.

For me, I've looked at short sales and foreclosures, and they are rarely as good a deal as they seem on paper. Very often they have not been cared for, frequently vandalized, and the banks are most often taking a" take it or leave it" attitude, even when large issues are in play, and dragging their feet to boot, so it takes forever. Sometimes these home require cash to buy them, as well, so no loans will cut out a lot of buyers. (Not to mention sometimes the "owner" is still occupying the home, and will not leave, and it becomes your problem to get them out.)

For these reasons, "I" am willing to pay more for a regular home, being sold voluntarily, to spare myself the aggravation and repairs.

Now, 40% more seems like a lot, so you better have one heck of a house compared to others - even short sales. If you do, take a shot. If you don't, then you need to ask yourself if you really need to sell, or not.
0 votes
Darren, Home Buyer, New York, NY
Fri Aug 19, 2016
It's possible. This question is over 4 years old, and a lot has changed in 4 years. Consult with a local expert and find out what comps look like, now.
Web Reference:  http://SchortgenRealty.com
0 votes
Jc.randerson, Home Buyer, New York, NY
Fri Aug 19, 2016
Possible? Perhaps. Probable? Odds of that happening are close to zero. Even in a hot market no bidding war would go that high. Get an appraisal done, and price it based on that. Best wishes!
0 votes
Research, Home Buyer, Chino Hills, CA
Thu Aug 18, 2016
I need a Ferrari, are you buying one for me?
0 votes
Research, Home Buyer, Chino Hills, CA
Thu Aug 18, 2016
And I need a Ferrarri, does that mean you'll buy me one?
0 votes
Research, Home Buyer, Chino Hills, CA
Thu Aug 18, 2016
And I need a Ferrarri, does that mean you'll buy me one?
0 votes
Research, Home Buyer, Chino Hills, CA
Thu Aug 18, 2016
Thank you. Pricing your house to make killing is dishonest at the best.

That goes for half a million house of 900 feet in Victorville just the same as for one of realtors around us who routinely lists the houses 20-40% higher than comp- and they never sell at listed prices.

Unless you are in an area where the Chinese or mafia are buying, few people are stupid enough to buy better house at their expenses.
0 votes
Patricia E.…, Home Buyer, Orlando, FL
Thu Aug 18, 2016
The current prices are an example of what the housing market indicates homes similar to yours are selling for on the average. because you "need" to get 40% more than these comps are showing it will appear in listings that either your home has more to offer than those other homes or that you are over priced. You need to sit down and discuss your needs etc. with your realtor and see if you can work towards getting your home up to a higher price point by making some improvements etc. to make it worth more to the prospective buyer.
0 votes
PIFA, Home Buyer, Upland, CA
Thu Aug 18, 2016
Why not put it really low and create a bidding war. This way you will probably get that extra you need. Lots of sellers do this. Heck the home I bought 4 years ago I had to out bid 6 other people cause the owners were asking such a nice low price. I paid 20k over ask.
0 votes
Susan Gay, Home Buyer, Vidor, TX
Thu Aug 18, 2016
You will need a really good buyer that would have a tremendous down payment and won't think you are listed too high. But they will look at the comps and most likely walk away. A bank won't approve a loan higher than the appraised value, based on comps.
0 votes
Sabineartist, Home Buyer, Greensboro, NC
Thu Aug 18, 2016
Is your house better maintained than the houses that were sold as short sales? Sometimes the same financial problems that caused the short sale will also cause the owner to fall short on upgrading the kitchen when it gets old or the bathrooms, paint and just general repairs. A house that is well maintained seriously needs to sell for more than the house that suffered from lack of it. If your house has been maintained and upgraded it deserves a higher price. But, sadly those around you that have neglected their homes will drag the value of yours down with them to some degree.
0 votes
Innipinni2, Home Buyer, Maricopa, AZ
Thu Aug 18, 2016
As a buyer shopping at this time I would probably not look at your home if it was overpriced in comp to others not counting short sales. There must have been other sales recently. If an emergency and you have to sell, you might have to eat the difference. If not take off market and re-list when you can list at a reasonable price. I have been shown a house that was $20,000 over others for sale with the sales pitch being it is in a "sought after neighborhood". Well as a newbie to the area looking around it might have been "sought after" 10 yrs ago when the house was built but doesn't nothing for it now! I would buy the house in a heartbeat if they would lower the price to be sensible as it needs complete repainting inside and out, new flooring in bedrooms(existing carpeting is stained and old) and missing washer and dryer, but it is firm as they are hoping a seasonal person will buy it at the higher price. At the moment is racking up days on market. Depends on how much you want to sell it and realize nobody gets back the money they put in. I hate to walk into a house that is overpriced and see the mess they made of it. They advertise custom 2 tone paint do you know the buyer's color scheme??, laminate floors, etc. Paint neutral colors it will brighten the house and not make the buyer cringe at the thought of trying to cover that dark wall. Laminate is almost as bad as carpet it doesn't wear well at all. Hate to look at a house and start adding up the costs to redo what the owner did and then thinks he can charge me for it. I have bought over 2 dozen homes and counting in 5 states. In my opinion put in decent appliances including washer/dryer and you will be further ahead. Don't advertise a great kitchen and then have each appliance a different color. I immediately start to wonder which is original and when will I have to start replacing them.
0 votes
Heather Mcrae, Both Buyer And Seller, Wenatchee, WA
Thu Aug 18, 2016
You're not going to get more for your house than it's worth, no matter how much you need more money.
0 votes
Joseph Rugge…, Agent, Las Vegas, NV
Thu Aug 18, 2016
Charles is absolutely right! However, in a increasing value market it is also important to analyze the features and prices of pending homes that are already in contract and moving towards closure. Even a call to these listing agents may help in pricing a listing that is at the current market value.
0 votes
hillman1948, Home Seller, Cape May Court House, NJ
Thu Aug 18, 2016
Once you do a fair evaluation of your : Home, Property and LOCATION, a fair price should be paid. Not everyone wants the same features in a property, but that doesn't mean the value isn't there. I believe that a lot of days on market may be less important to someone who realizes how screwed up the market has been. I live near the Ocean and Bay and the slow recovery from Hurricane Sandy ie: Red Tape from FEMA , etc. has scared a lot of people away from the 2nd home market in this area.
0 votes
hillman1948, Home Seller, Cape May Court House, NJ
Thu Aug 18, 2016
I have had my house listed way higher than the "Zestimate".( They are using public records) I guess the fact that I am 2 blocks from a waterfront bayside park, and within 3 miles of the ocean isnt factored in. Get the price you need to get: as long as the worth is there someone who can appreciate it will come along.
0 votes
Rosemarch8, Home Buyer, Sarasota, FL
Thu Aug 18, 2016
Find the comps that do match your house on ALL (or the most) selling points, if there are none out there, then good luck.
0 votes
Val Ofreneo, Home Seller, Sheridan Apts, Plano, TX
Thu Aug 18, 2016
It depend on how fast you need the proceed. A good CMA give you a better price. Overpricing may work but there is the chance of not selling at the price you want.

Val Ofreneo
PMZ Real Estate
vofreneo@pmz.com
0 votes
Jpwilbert2002, Home Buyer, Anderson, SC
Thu Aug 18, 2016
Not worth it , I was 2 years trying to sell our property , because we priced it over what the comps were selling for . as soon as we dropped the price down were it should have been it sold in 5 days .
0 votes
Janetpowell, Home Buyer, Fernandina Beach, FL
Thu Aug 18, 2016
Someone on my street listed their house $100,000.00 over the recent comps It was a very nice house and sold fast. Now all the houses in my neighborhood have jumped that 100 thou. and they're
selling well

Meanwhile our homeowners are all primping up their curb appeal because they realize the value in their property---which perpetuates the value.

Just a little story to let you know that you never know!
0 votes
Lisa Strollo, Agent, Massapequa, NY
Thu Aug 18, 2016
"Need" never equals value. Comps are important, but if inventory is extremely low, you can sell a bit higher than the comps as long as you are realistic. I like Cheryl Modrows response below. You can add for updates and square footage, and a bit more for lack of inventory. At the end of the day you can sell for anything but the house will need to appraise if your buyer is getting a mortgage. If it doesnt appraise for the sold price then the bank might not fund the mortgage unless the buyers have more cash to put down. Most buyers cant do more cash, so the deal will die and your house goes back on market.
That will add to your days in market, as Charles Butterfield stated below. Time on market is your enemy and results in lower offers the longer your listing sits.
Lisa Strollo
Associate Broker
Century 21 Prevete Bastone
616 Broadway, Massapequa NY
631-258-7584
0 votes
Jennifer Okh…, , West Hollywood, CA
Thu Aug 18, 2016
I'm a strong believer that you can never price "too low." As a Seller, wouldn't you rather grab the interest of MORE buyers in your neighborhood and let them bid against each other? I think that this is the BEST way to get the highest price for your property.
Based on my experience, in the state of CA, a Seller is *not* required to accept a Buyer's offer, no matter the price or terms. Both the Buyer and the Seller must agree upon terms before going under Escrow.

Happy to answer any other questions you may have,

Jennifer Okhovat

http://www.aaroe.com/jenniferokhovat
http://www.JenniferOkhovat.com
0 votes
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