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Once I had a smooth talking swine of a man ask me to come down 10 grand on my home, he knew we were desperate that time and he said oh don't be mad at me, acting all savvy and snake like, lucky he was on the phone, he was a slimeball real estate agent who ripped people off.
what if you are at the "bottom" of your house price?? then any offer whether lowball or not is too low. In that case you cannot counter because you are at the lowest price you are willing to sell your house at...what would you do then??
Low balling is a touchy situation but I will give my personal experience. I am glad I low balled my seller because when the bank appraised the house, it appraised only at 10K above the low ball offer. So, yes it was very well worth it to insult the seller in my case. You don't want to over-pay for a house on account of not hurting someone's feelings.
Okay. I'm ignorant. Two questions: (1) Aren't prices set according to or near the appraised value, or at least a reasonable explanation as to why the price is set higher than the appraised value and (2) is there a way to find the appraised value before you put in an offer? I've learned something here today. Thanks for the info.
Quote:
Originally Posted by ParkerP
Low balling is a touchy situation but I will give my personal experience. I am glad I low balled my seller because when the bank appraised the house, it appraised only at 10K above the low ball offer. So, yes it was very well worth it to insult the seller in my case. You don't want to over-pay for a house on account of not hurting someone's feelings.
Okay. I'm ignorant. Two questions: (1) Aren't prices set according to or near the appraised value, or at least a reasonable explanation as to why the price is set higher than the appraised value and (2) is there a way to find the appraised value before you put in an offer? I've learned something here today. Thanks for the info.
To answer your first question, the price SHOULD be set according to appraised value. However, my seller and her agent perhaps had there minds stuck in the "2005-06" market boom and thought they could get 208K for something only worth 165K. Greed is an ugly thing.
For your second question, your agent should be able to provide comps for you to get you as close to the appraised value as possible. If your agent is really good and honest, they will let you know that there is no way a house is worth what the seller is asking if the price is just ridiculous. You can also try these little "appraisal" sites like Zillow but I will say not to depend solely on them. On some areas, their appraisals are right on the money where as others, they are way off. You can also do like my aunt did and hire your own appraiser to find out the value. You don't want to end up in a situation where the bank tells you that the house is only worth $165K and that's all they will give you and you agreed to pay the seller $180K. So now you will either have to come up with 15K or pray that the seller agrees to come down 15K.
Well, thanks very much for answering my questions. This is great information.
[quote=ParkerP;1053833]To answer your first question, the price SHOULD be set according to appraised value.
For your second question, your agent should be able to provide comps for you to get you as close to the appraised value as possible. QUOTE]
Market value and appraised value are 2 completely different things.
You can get an independent appraiser to do a CMA.
The market price is what the market will bear-i.e. the highest price the seller can get in that particular market for example. It is different in every state/region.
In 1998 NY metro area houses were appraised at 200k but sold for 400k. 400k was the market rate at the time.
Last edited by dreamofmonterey; 07-12-2007 at 12:30 PM..
Reason: add
That is actually a market stress related system breakdown. The apprasal system will break under a fast changing market.
But you should price off comps. A CMA is simply a way of looking at the comparables. It needs judgement as well. Don't try and sell at the top price in a declining market. YOu will end up behind the price curve and never sell.
just wondering, my house is appraised at 793,000 and my price to sell is 699,000 my house does need updating (kitchens and baths) but ALL the other houses in my town are for sale usually 80,000-100,00 over appraised value some of the others are not updated but are in my area and are 20,000 over mine. BUT they are 100,000 over their appraised value...i just don't understand this....
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