Impacts of neighbor's house on sale for lower price (for sale, houses)

[sue_nany]

We had plans to put our house in the market ourselves (FSBO) and we decided a price based on similar (sold) houses in the neighborhood.Surprisingly, our immediate next door neighbor has put his house on sale through a realtor for a lower price (at least 20k less) for a house bigger than us. That house has the highest square footage in our development with a bedroom/bath in the first floor.
Both are beautiful, well maintained houses and ours should go for the price he is asking( may be little less) and his should go more than ours.
That has put us in a fix.
- Do we put our house in the market FSBO now ( May/June is the best month to sell) or wait till he sells his house?
-How do we price ours as we fear buyers would bargain comparing theirs with ours - we have finished basement and newly renovated kitchen with granite counter tops - and they don't, but ours is a smaller model by about 200 sqft.
We do not know what the impact will be, if 2 houses next to each other are in market at the same time and we feel ours will sell low due to this and would have done better if not for his low pricing.

Appreciate your thoughts on this that would help us decide our next step of action.

[j0nx]

If they are in the same price range then all potential buyers will visit both properties right after another. If I were you, I'd wait. Two houses for sale right next to each other will also make buyers question if there is something not being disclosed in that area.

If he is priced low the house should sell fast and you get another comp.

[sue_nany]

Thanks -that is good suggestion.

[sue_nany]

jOnx, Area/neighborhood is great!! Properites are hot cakes. it is a coincidence that our neighbor is retiring/ moving and we are moving due to my husband's job in a different state. He priced it low so he could sell and move faster but we feel that it will bring down the property price a little bit in our development.

[JERSEY MAN]

Everyone's different. Me, if I was looking at 2 houses next to each other, I would want a lower price on the fsbo because there is no realtor cut.

[sue_nany]

True! That's how generally a buyer would look at it and even I would look at it as a buyer. Issue here is our neighbor is underselling himself.

[j0nx]

yeah, you know they are saving ~5%.

[bradykp]

If your neighbor is truly underselling his house he'll get multiple offers on it and it will bid up. but you're right to be worried, because the more information that exists for the buyer, the more they'll know about what the price should be. hopefully for your scenario, the house sells quickly and for above listing price. then you can list yours competitively and if people question the price vs your neighbor's you can probably mention he was in a hurry to sell. but in any event, you'll get offers and know where buyers stand on what they think your house is worth.

[sue_nany]

Thanks bradykp. That's encouraging...especially if it sells above listed price, then it is all the more merrier for me!!

[sue_nany]

Put our house on sale this long weekend Friday and got 2-3 offers and accepted one.
All is well!!