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It's a general question, but I'm curious in south shore nassau/suffolk area what % of the 'asking' prices are homes actually selling for?
I recently spoke to someone who closed on a home and purchased south of Montauk, in a nice town for under $300k that the home was asking $400k only a few months ago.
Obviously in this marker buyers can get lucky with a seller going through a divorce or life situation and needs to unload and willing to accept a lowball offer.
Aside from these situations, are homes really selling for the prices they're listed for on MLS. Is it becoming norm that people with homes listed in upper $300's and low $400's starting to accept offers 25%-35% off their asking price?
In general what is the overall market out there? The FED stated interest rates will stay low till mid 2013, so is it just a waiting game for buyers to save more cash, wait for homes to come down and than purchase? Or will an improving economy and low interest rates spike an increase in homes.
What's your take on Long Island real estate, in regards to first homes for young people and 'middle class' homes in nice neighborhoods currently listing in upper $300's-lower $400's? Not referring to low income neighborhoods or super affluent areas where homes reach over $900K as these neighborhoods I do not feel seem the same interest from middle class and first time homebuyers.
Comps. Comps are your friend. In this market and short of getting an actual bank apprasial (A scam in it's own right) the only thing you have to truly base value is what other people are willing to pay for it.
Is there a site that summarizes list price and final selling price to give an idea on how much negotiating was done or do you have to look house by house?
Is there a site that summarizes list price and final selling price to give an idea on how much negotiating was done or do you have to look house by house?
In your Search click "More Options" and than only check "Sales Records"
Click any property interested in, scroll to bottom and you will see the History of what the home was listed at, and what it sold for.
If you want to analysis a community as a whole, do not select more options and simply leave the default options and just put the town name in the search field. When you click search there should be a Listing Stats and Sold stats number at the bottom of the search.
It's a general question, but I'm curious in south shore nassau/suffolk area what % of the 'asking' prices are homes actually selling for?
I recently spoke to someone who closed on a home and purchased south of Montauk, in a nice town for under $300k that the home was asking $400k only a few months ago.
Obviously in this marker buyers can get lucky with a seller going through a divorce or life situation and needs to unload and willing to accept a lowball offer.
Aside from these situations, are homes really selling for the prices they're listed for on MLS. Is it becoming norm that people with homes listed in upper $300's and low $400's starting to accept offers 25%-35% off their asking price?
In general what is the overall market out there? The FED stated interest rates will stay low till mid 2013, so is it just a waiting game for buyers to save more cash, wait for homes to come down and than purchase? Or will an improving economy and low interest rates spike an increase in homes.
What's your take on Long Island real estate, in regards to first homes for young people and 'middle class' homes in nice neighborhoods currently listing in upper $300's-lower $400's? Not referring to low income neighborhoods or super affluent areas where homes reach over $900K as these neighborhoods I do not feel seem the same interest from middle class and first time homebuyers.
Very few if any people are accepting offers that much lower than asking. Most sellers are looking for 10% below asking at the most, and many won't even budge at 5%. That's why you see the same houses listed for months on end and not much volume is moving. A buyer or seller who is not in a rush to buy or sell feels entitled or feels they have the upper hand in the process, and thus no deal gets done.
This is going on the most with houses that are actually updated (yes there actually are a few). I've been to some open houses where the house is meticulously kept, with a beautiful updated kitchen and newer baths. Let's say the owner is asking $450.
Problem is that no model of that house has sold in the past year for more than $400. The owner thinks he's entitled to get his $50K kitchen and bath investment back, "my house is the best on the block!!", and the buyer looks at comps and says "I'm not paying that for a house in this neighborhood..." They bid $390 or something, and the owner throws his nose up and doesn't budge. Even if the buyer were to sucker up and put a full price offer in, do you think the bank is going to appraise the house for $450 in a neighborhood where nothing sells for over $400?
6 months latter, the potential buyer is still looking, and the owner still hasn't sold their house. I know more than a few people in this position on both sides of the equation.
Very few if any people are accepting offers that much lower than asking. Most sellers are looking for 10% below asking at the most, and many won't even budge at 5%. That's why you see the same houses listed for months on end and not much volume is moving. A buyer or seller who is not in a rush to buy or sell feels entitled or feels they have the upper hand in the process, and thus no deal gets done.
This is going on the most with houses that are actually updated (yes there actually are a few). I've been to some open houses where the house is meticulously kept, with a beautiful updated kitchen and newer baths. Let's say the owner is asking $450.
Problem is that no model of that house has sold in the past year for more than $400. The owner thinks he's entitled to get his $50K kitchen and bath investment back, "my house is the best on the block!!", and the buyer looks at comps and says "I'm not paying that for a house in this neighborhood..." They bid $390 or something, and the owner throws his nose up and doesn't budge. Even if the buyer were to sucker up and put a full price offer in, do you think the bank is going to appraise the house for $450 in a neighborhood where nothing sells for over $400?
6 months latter, the potential buyer is still looking, and the owner still hasn't sold their house. I know more than a few people in this position on both sides of the equation.
Prudential Elliman publishes Quarterly Market Reports for both Nassau and Suffolk. Go to their website and download the latest. They break up the report by area as well (North Shore/South Shore/Wealthy Areas).
There is also a list-to-sales discount for the quarter as well. You will notice that the latest "averages" are between 6 - 11%+. The winter months usually show the largest discounts off list.
Very few if any people are accepting offers that much lower than asking. Most sellers are looking for 10% below asking at the most, and many won't even budge at 5%. That's why you see the same houses listed for months on end and not much volume is moving. A buyer or seller who is not in a rush to buy or sell feels entitled or feels they have the upper hand in the process, and thus no deal gets done.
This is going on the most with houses that are actually updated (yes there actually are a few). I've been to some open houses where the house is meticulously kept, with a beautiful updated kitchen and newer baths. Let's say the owner is asking $450.
Problem is that no model of that house has sold in the past year for more than $400. The owner thinks he's entitled to get his $50K kitchen and bath investment back, "my house is the best on the block!!", and the buyer looks at comps and says "I'm not paying that for a house in this neighborhood..." They bid $390 or something, and the owner throws his nose up and doesn't budge. Even if the buyer were to sucker up and put a full price offer in, do you think the bank is going to appraise the house for $450 in a neighborhood where nothing sells for over $400?
6 months latter, the potential buyer is still looking, and the owner still hasn't sold their house. I know more than a few people in this position on both sides of the equation.
So what you are saying but using way too many words is : Comps.
So what you are saying but using way too many words is : Comps.
I agree with that, but the other is don't overimprove for the area too...
Some of it may be timing etc, but it sounds like in your example that house is really worth significantly more than what the last one sold for due to updated kitchen and baths. Maybe the number is 440, or 435. the buyer isn't correct to think that, hey the "comp" sold for 400 so I should get it for $400, if the comp was origional condition vs new kitchen and baths.
of course then you get into what updated actually means and whether its a real update or was updated 20 years ago instead of 40 so its "updated".
when I was looking, I found that houses in great shape, didn't have any real configuartion problems or location problems, that weren't priced out of this world were selling quick at close to asking. Anything else it really depended on price.
I agree with Dman, basically sellers are going to sell for max 10% off last list, unless you're talking a special situation. If the seller is still listed way too high, they haven't come to grips with the market and you aren't going to educate them. not saying its worth 10% off list, but that you won't get them much lower. I think your 300k closing on a 400k listing is not the norm, most of the time if its worth 300k, they'd have to price drop from 400 to 375, then 375 to 339, then maybe take the offer for 300K.
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