fair market value vs listing price charleston

[JimmyCh]

I am not a looker, I have paper from bank telling me exactly how much I qualify for. I may have to work on my real estate agent a bit because he seems to think my offer is a little low. I see some houses I like, but my offer will be at least 10-20% less than the list price. I am not even asking much just offering them at 2004 price range :P (and no, I will not pay 2007 price ever). Also, how do you know your real estate agent is REALLY showing you all the offer submitted, or maybe your house really doesn't worth that much. Well, at least now the government is giving me free 6,500 dollars (yes, I own a home paid in full somewhere else). Greatest wealth transfer ever (from poor to the rich though).

[emilybh]

If I were you I'd start asking far less than 20% below asking price. After all the national unemployment rate if you include the underemployed and those that have given up is about 17%. Hyper-inflation is in front of us. It will take at least a few years for the market to bottom and start back up (to as many as 10 years if you read any of Peter Schiff's books) I would base my offer only on those homes that have sold withn a half mile radius of the property I was interested in within the last 60 days. Then look at the downward trends and factor that in as well.

Also look at the market. How much in the town has even sold at all? We are heading into winter and it is a buyer's market. If you over pay (as many buyers did this summer), it is your own fault. Study the market on trulia.com; zillow.com; and cyberhomes.com. There you can see both the lender owned properties as well as those to be auctioned off by the county and those who have just received a notice of default.

Unless those who have received a notice of default are sold as a short sale-- which I'd think few are because the lender is trying to recoup the full balance including refinances and home equity balances, the total of which is usually way above market value-----both those in the pipe lines that are short sales and those that are scheduled to be auctioned off (also for more than they are worth) represent more than 20 times the number of properties that are currently lender owned on MLS and should dramatically IMPROVE thebuyer's negotiating power once they come on the market and become MLS listed.

Of course your agent will try to tell you that "the last home in this neighborhood sold for within 10% of asking price" but you have to find out when that was. If it was a 4 months ago, it was a different market. That is how I would look at it anyway.

[JimmyCh]

Actually, the houses I am interested in, 3 nearby homes are currently under contract in the same development (all short sells) at about 30% discount. So I think offering 20% off is me being nice , of course, they may not be under pressure to sell and the houses are a little better.

[moneill]

It all depends -- many variables. We had a house in our area come on the market this summer that was listed at 2007 prices. The owners were stuck -- they had to have that amount. I was shocked when they sold it just a month later....for the asking price. The buyer fell in love with it -- didn't want to see any other houses and bought it -- knowing the sellers needed to get their price. Now I would never buy a house in a neighbourhood without checking the other listings. These people looked at nothing else.

Here we sit -- offering a very discounted price and nothing. We had someone look today -- first person in a month. THe first time home buyer thing won't help us -- we aren't a first home. Sigh........

[JimmyCh]

Yes, there are many variables, but if your house is not selling for a long time. I think there is only one variable, and it is the price. I really don't care about other buyers, and told my Realtor that I will not be in a bidding war. If some fools decide to leverage a depreciating asset because they are in LOVE (unless they pay with cash but doubtful), please feel free to do so, and the banks giving the money to them is even a bigger fool. No bail out for the banks if they screw up again.

[moneill]

Even in a a hot market I would avoid 'bidding wars'....As a buyer you are never going to win in a bidding war...you may just be the one that gets to pay too much for a house.

Unfortunately for us we put our house on the market just before everything came tumbling down. Normally a house on the market for a long time would mean that there is something very wrong with the house or the price is way out of line -- but the reality is -- today....that isn't always the case. Even some of the short sales aren't selling. Now you are right -- you can give you house away and somebody will take it for sure....but if you don't have to do that -- why would you?

You would think if price was the only concern I would be hearing -- great house, lousy price from feedback. You would think that the houses that do sell in the area would be cheaper -- not the case -- the last house sale was priced substantially more than ours and very comparable.

In the last year and a half -- serious buyers looking -- about three. In a hot market -- you would get that in a week end. Sure, sure we've had people look -- but nobody who really WANTS to buy just lots of people -- 'just looking'. Atlanta area is hurting job wise. We aren't a retirement destination, so you aren't getting people looking to move here to retire. Companies aren't relocating. Even big companies like GE have canceled all paid movies within their corporation. People aren't moving up because they don't have enough money to put down, they don't have job security and they can't sell their exiting home.

Blah, blah, blah. Somebody looked last night -- first person in almost a month. Interested to see what the feedback is.

[moneill]

Have to add that the house that did sell that cost WAY MORE than ours -- those buyers didn't even get to our house. They saw that one, fell in love with it and paid the asking price (CRAZY in this market).

[Techgeek]

FMV is a strange number that varies depending on who you ask.

For example:

My home was purchased in 2007 for $X. It was put on the market in 2008 for the same amount but did not sell and I eventually bought it for $Y or $X - $30,000.

According to Berkeley county, the FMV was $X because my purchase was a short sell despite that it did not and could not sell for that amount. My pre-closing appraisal showed a value of $Z or $X - $17,000.

My Real estate agent told me that the FMV should have been what it sold for the last time it sold and after months of fighting the county I was finally able to get the FMV down to what it appraised for.

Basically what I am saying is get an appraisal and make sure the home is worth what you are paying for it in the current market but don't worry too much about FMV until you have to (like when the county tries to jack up the value for tax purposes).

No basements here. Get a frog.

[JimmyCh]

Not that many average American families have several hundred thousands in the bank for a down-payment in these days. You can look at who is buying all the California houses in cash. Let's say majority of them have Chinese last name.

Now think about it, I should just look at a home and put in a offer at 20% discount. If I am even looking at a house based on the MLS pictures, the most likely feed back from me is probably the price unless the pictures just BAD.