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1. It's a new house with 5 bedrooms plus a bonus room
2. It cost me $242,000
3. I put in approx. $20,000 in improvements
4. The yard is large, tripled in size when we landscaped it. I don't have exact estimates on size.
5. Improvements include (hardwood floors, tile in kitchen/bathrooms, upgraded light fixtures, ceiling fans, upgraded appliances, extensive landscaping, security system, automatic garage door opener, etc.)
6. The subdivision is not built out. Won't be for another 2 years according to the builder.
7. It's in the Forsyth school system (best schools in the state from what we're told)
8. The houses around us are all new. With the exception of one other neighborhood (where houses start at $270,000), all other houses in the area are selling between $500,000 and $700,000.
I noticed a similar situation in the subdivision I'm in (Bramlett Station) in the Grayson area. There are three homes that were recently purchased and are now back on the market. I spoke to the realtors selling the homes, and was told that the owners had job situations. The houses, however, have been on the market for 1-3 months. In my opinion, the houses are overpriced. Apparently, theses owners purchased their homes prior to the $20K new construction increases in the subdivision and paid much less (anyone can check on www.ajc.com for recent sales price information, which lists the home addresses, closing dates, original salesprices, etc..). However, each home is listed to reflect the builders current asking price.
My advice is to unlist the property for a couple of weeks and then relist it with a lower price. Sorry, but you may have to cut your losses. You might have overimproved the home - relative to what you paid for it - regardless of what the realtor tells you. By overimprove, I mean that a potential buyer looking for a home in a new subdivision is looking for just that - a NEW HOME. Have you ever taken a newly purchased item back to Sears. Once the box is opened, Sears puts it back on the shelf at a discount. It's not that the item has depreciated - or that house has depreciated. But the fact is, the buyers are looking for a new home. Your sudivision is not built out. There are other new subdivisions near you.You have to give them an incentive. You have too offer them a deal. So if the builder is offering the same model with similar upgrades, your price should be a few thousand less. Either that or wait - and wait, and wait..... I gaurantee that if you lower the price it will sell. Soon!!! The reason I know this is because a resale of a new home in nearby new subdivision of mine was listed too high and as soon as the price was lowered - by $4000 it sold. It was on the market for 5 weeks.
I just want to say that I sympathize with your situation.
I know Riverbrooke subdivision in Forsyth County. I went there when I was looking for a house. It is in very nice neighborhood with all new constructions all around it. I remembered that there is a nice new country club just two miles ahead.
But for me, that's just too far away from the work.
zillow list actual county sales records. If you bought your house 10 years ago it will list the value of the house based on the sale plus actual appreciation or devaluation of the neighborhood.
If you have filed a building permit with your county then zillow will update the records and the value of your property.
Of course when a person gets on zillow and research their own home they realize that, whoa, my property is really valued low. No, zillow is listing your property value according to actual market fluctuations. Not what you think it's worth in this overhyped market. Everyone thinks their house is worth more than it is. Heck I do too.
As far as appraisals goes, any real estate investor, banker or agent knows that it's subjective and usually favor the person who ordered it. Thus, you'll get a higher value if appraisal is ordered by the owner. A lower value if ordered by the bank. The only people who don't seem to understand this theory is the homeowners who order the appraisals and think their home is magically worth that amount. No...no...no.
Being a real estate investor for the past 15 years zillow has saved me time with checking in at the courthouse to find out how much the current owners bought the house. (One lady listed a property for $100,000 more than what she bought it for three weeks earlier and she put NO money into it. That would have been $100k clear profit for her if I didn't perform my due diligence). It saves me time in bothering my real estate agent about comps. And I always lowball an offer based on not what the owner thinks their property is worth but the actual value. Six months later when that property is still on the market I make that same lowball offer and almost always get it accepted.
Basically, if you are a buyer zillow will be a great tool for you. If you are a seller you really don't want to face the reality.
Here's a test. Sell your property. Wait for the county to update your records. Get on zillow and you'll see the price reflects the selling price. From that time on zillow list the new valuation plus appreciation or depreciation. Not speculation or "I think" my house is worth THIIIIS MUUUCH.
Zillow has saved me thousands.
Last edited by staylor21; 10-28-2006 at 09:59 PM..
Save yourself the $300. Appraisals will tell you what you want to hear. Your real estate agent will provide actual sales and comparables in your neighborhood. Base your price 20-30% lower than those for a quick sale.
Mark; You should keep it on during the holidays and take it off on January 1 for 30 days. Reason is that there are fewer listings on the market during holidays, EVERYONE says" I'll put my house up for sale after the holidays" so then you are one of dozens of homes on the market on Jan 1, but if you are on when there are less on the market you have a better chance. Motivated buyers need to buy before year's end, relocating people and investors, so keep your house on until Jan1, relist on FEB1, don't blame your agent. The market is slow right now. Give your agent a second chance, if the house is not priced competitively and in perfect shape with curb appeal, on a quiet street, you will sell. Low price brings the buyer driving by, curb appeal brings them in the door with an appointment, and condition of the interior and upgrades bring the offers. It is probably your fault for lack of appointments if you picked the price. Another thing to consider, go to realtor.com act as if you are a buyer, look at homes that fit the price and description of your home to a TEE, if you pull up homes that are the same price and they look smaller than your home your price is okay, if they look more magnificent, then your house will be sitting on the market. I just went to Georgia, south of Atlanta to look at homes for one week. I concentrated on two large subdivisions that they are still building in and honestly I couldn't figure out which of the dozens of homes just in my price range that there were to look at. I looked at so many I couldn't figure out which ones to look at. I started feeling like I could find that perfect home that had all the features I wanted, I looked at about 35 homes I think (poor realtor!) and some had the nice view, some were on a court, some had stacked stone on the front, some had a bonus room, some had a basement or a fenced backyard, some had a pantry, but none of them had all of that. It was exhausting! I wrote an offer and then decided to wait until my new job was more stable to move there.
Hi TXlover...my husband and I are actually looking in your community. We built a home last April in Grayson, and since I have been promoted within my company and now work in Alpharetta. He works in Norcross. Therefore, we're burning hundreds of dollars on gas/month and the wear and tear on our cars. So! We are currently looking to rent out our Grayson home and move locally to work. We would be interested in seeing pictures of your home as you've mentioned many upgrades, of course if it hasn't sold yet. Let us know.
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