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We paid 7% below asking price. But it was originally listed at much more than that, so about 20% off of that. IMO they really wanted to sell and had been there long enough that they didn't overypay originally. (monmouth county)
my house is listed and I know I am priced high, but I can carry the house so I don't need to sell it fast. It would cost me about 18k a year to carry the house, if I knocked 100k off the price, I still wouldn't have any more lookers and for 100k I can carry the house for 5 years of more. I really have no incentive to lower the price
i think a huge problem are sellers pricing as if it were 2005 and end up chasing the market down. i see these new listings come on the market and wonder what special crack they are smoking.
The relationship between asking price / selling price is different in every case, so general statements are tough to make.
That said, if I had to make a general statement about what I see out there in terms of asking price, Tahiti's comment above pretty much sums it up for me.
Sellers seem to be smoking some good crack in coming up with their original asking price. But, eventually they must run out of crack, because if you watch you'll see asking prices being lowered, usually several times, before a house sells in this market.
Bottom line is: if you need to sell, price it realistically. If you don't need to sell, and aren't going to be realistic about the price, don't even try in this market, it just makes it worse to have a zillion houses sitting unsold on the market.
Considering the conditions of the real estate market these days, I was wondering what people on the board thought about home prices.
What percentage of asking price can sellers expect to actually get for their house? Obviously, there are many factors (location, size, land, features, etc.) that come into play and are specific to each transaction, but there seems to be a a lot supply in the popular N. Jersey towns. Just wondering how much the general "buyers market" scenario actually translates to the agreed home price in the transaction.
Thanks for your insight.
Unfortunately there is no real formula for what percentage can be taken off the asking price due to the fact that each home is different and the price they are asking is different. One homeowner could be asking $750K for a house worth $700K and the other seller could be asking $800K for the same house. If we gave a formula then it would be wrong in this instance.
The best advice I can give is to do your research on comparable's or have your realtor do it for you. You guys can meet before you sign the offer and go through the comparable's on the computer together. This is the way I work with my clients so that they get a one on one feel and see exactly what I am talking about.
Also, as long as your appraisal comes back, then you are in the clear. If it does not appraise then you paid too much.
i think a huge problem are sellers pricing as if it were 2005 and end up chasing the market down. i see these new listings come on the market and wonder what special crack they are smoking.
if you need to sell, get serious. look at what comparable homes have SOLD in your area in the past 3 months, and get aggressive with your pricing - 10-20% below that. don't play around. it's a tough pill to swallow, but if you want to move the property, you can't "test the waters". think about all the time you'll waste maintaining your property - paying mortgage, taxes, keeping it in spotless condition, not to mention the mental toll it takes on you.
if you don't need to sell or can't accept the fact you won't make as much as you would've 3 years ago - do not sell. if you MUST sell - do it right the first time and unload fast.
price cures all evils!
Some very good points. Would you mind attending my listings appointments with me as I feel like when I say this I am talking to a brick wall.
We paid 7% below asking price. But it was originally listed at much more than that, so about 20% off of that. IMO they really wanted to sell and had been there long enough that they didn't overypay originally. (monmouth county)
I got a very similar deal on my first purchase. About 18% off asking.
Some very good points. Would you mind attending my listings appointments with me as I feel like when I say this I am talking to a brick wall.
LOL - I know it's real easy for me to say, as I sit here in a house I purchased before the boom and have no intention of selling. But if a seller is purchasing another property, they need to remember any money they theoretically "lost" most likely will be "made up" on their purchase. That should soften the sting a little.
My old house is on the market now - over twice what we paid 10 yrs ago (no major improvements), and $70K more than they paid in 04/05(?). They've dropped $30K (so it originally was listed $100K more than they paid, which is a VERY LARGE percentage). I don't get. It's just.sitting.there for about 5 mos now. Honest to God, if they dropped the price $60K, it'd probably sell tomorrow.
One last thought - it also seems to be that people "testing the waters" with pricing way out of whack are really doing a disservice to their agent. It's wasting their time and money - I guess the agent can say "no" though, is that common?
If your selling your house, price it fairly. If your overpriced in this market, your not gonna hear ANYTHING from anyone. There are a lot of houses out there and if your overpriced, no one is gonna want to deal with you.
Interestingly, for 20 odd years, listing prices and sales prices tracked pretty closely. Over the past couple of years there has become a huge disconnect - asking prices keep going up while sales prices are dropping. Quite amazing to see. No wonder inventory is up and sales are stalling, sellers in many cases are frankly delusional. Not all of course, but maybe some of the realtors should be showing the chart to their sellers, just to get it to sink in.
my house is listed and I know I am priced high, but I can carry the house so I don't need to sell it fast. It would cost me about 18k a year to carry the house, if I knocked 100k off the price, I still wouldn't have any more lookers and for 100k I can carry the house for 5 years of more. I really have no incentive to lower the price
I don't get that. If you know your house is overpriced by over $100k why bother cluttering up the MLS? It just keeps up the perception that sellers aren't realistic and keeps buyers out of the market.
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