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different areas of the country seem to have different rules for how much the difference is between the asking price for a home and the actual sales price. In the great lakes region, it is (or at least was) not unusual for a home to actually sell for 10 to 15% below the asking price (probably because the seller increased the price to make up for the commission).
Any thoughts on what the ratio is here in the triangle region?
no offense to the good ethical agents on this forum, but they tell you this because they want an accepted offer and quick sale. Offer what YOU want and if your agent frowns, find a new agent.
That being said, despite all this doom and gloom, fact is MOST houses are still selling at 97% of asking price. It also depends on what price range you are working in.
Again, not all agents are this way, but I found 75% of agents want to show you about 3-5 homes and then you are expected to pick one from these 3-5. They usually start sighing if you want to see more.
When I purchased my home in Cary, our agent was GREAT. Since I was new to the area, she spent 2 days showing us Wake forrest, 2 days in Apex and Holly Springs and finally 1 day in Cary. We saw about 35 homes in all. After we wrapped up our deal, I was so pleased with her service. I wrote her a check for $1000 as a bonus and recommended several new clients to her.
A bad agent is bad but a good one like we found, was priceless!
I think 98% is average in my neighborhood, too. A few sold a little higher (102%), a few a little lower (95%). Note that some of the homes that sold below the listed price had also been on the market for a while and had had their price reduced at least once. On the other hand, the homes that sold right at asking price or a little above usually sold the first week they hit the market.
What about homes that are listed way over the assessed value? Some are listed about $25,000 to $30,000 over the assessed value.
You mean the tax assessed value?
The tax assessed value is not necessarily accurate. Homeowners can still appeal the current tax value - and many will because their homes have been assessed for far more than the current market value of the home.
Edited to add: I don't feel that I explained that properly. Around here, existing homes are assessed for tax-purposes every 8 years. This just happens to be one of those years. So the tax assessed value you're refering to may be recent or it may be 8 years old.
The new tax assessments were sent out to homeowners towards the end of last year. If homeowners' feel that the value is incorrect, they may appeal (I think appeals must be registered by January 31st). If a home owner can prove that their home is not worth as much as the assessment, the county will lower the assessed value.
So basically, the tax values that you'll currently find on the internet are not set in stone. They most definitely should not be used to determine the retail value of a property.
The tax assessed value is not necessarily accurate. Homeowners can still appeal the current tax value - and many will because their homes have been assessed for far more than the current market value of the home.
Edited to add: I don't feel that I explained that properly. Around here, existing homes are assessed for tax-purposes every 8 years. This just happens to be one of those years. So the tax assessed value you're refering to may be recent or it may be 8 years old.
The new tax assessments were sent out to homeowners towards the end of last year. If homeowners' feel that the value is incorrect, they may appeal (I think appeals must be registered by January 31st). If a home owner can prove that their home is not worth as much as the assessment, the county will lower the assessed value.
So basically, the tax values that you'll currently find on the internet are not set in stone. They most definitely should not be used to determine the retail value of a property.
I had a buyer once who wanted to put in an extremely low offer. 15k plus closing costs on a 150K home. This was a popular neighborhood in the height of the spring market. I was totally honest with them and told them that this was too low and it wasn't a very strong offer and I didn't think there was a chance.
They told me they wanted me to write it up formally anyway and not call the listing agent first. So I did at their request. I received an e-mail back saying sorry. That's it. Nothing else said. I relayed that information back to my buyers and the answer I received from them was "they didn't even try to counter"?
A few days later the home went under contract. When it sold, I told my buyers that the accepted offer was asking price with closing costs.
I had a buyer once who wanted to put in an extremely low offer. 15k plus closing costs on a 150K home. This was a popular neighborhood in the height of the spring market. I was totally honest with them and told them that this was too low and it wasn't a very strong offer and I didn't think there was a chance.
They told me they wanted me to write it up formally anyway and not call the listing agent first. So I did at their request. I received an e-mail back saying sorry. That's it. Nothing else said. I relayed that information back to my buyers and the answer I received from them was "they didn't even try to counter"?
A few days later the home went under contract. When it sold, I told my buyers that the accepted offer was asking price with closing costs.
What did I tell you?
No surprise.
Many local agents help their Sellers price their homes so that a fair sale price will hit that 97-98% level.
Isn't it fun when you have a Buyer fall in love with a home and then decide that the Seller has to sell at 85% of list because it is a Buyers' market?
And then they cry. I mean, tears, when a true Buyer snatches it up...
Houses sell for when TWO parties agree.
Many Buyers don't have to buy.
Many Sellers don't have to sell.
Unless both parties have some motivation, or one party has a whole lot of motivation, there usually is not a deal to be done.
It really depends. There are agents out there who would list a house for any amount (not good agents, but there is always someone) and a house may be very overpriced or it may be priced to sell. You really need a good buyer's agent to go over comparables with you to figure out what the house is worth. This can't be reduced to a percentage of asking price, it depends on the house, the neighborhood, etc. etc. I don't think there is a formula or ratio that can really help you out. Do beware of old comparables, the real estate market is always in flux.
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This was a popular neighborhood in the height of the spring market. I was totally honest with them and told them that this was too low and it wasn't a very strong offer and I didn't think there was a chance. 
