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According to my realtor at the time we bought back in late August of this year, houses were going for, on average, 85% of the asking price in my area.
We ended up getting our house for 68% of the asking price- but it was a deceased estate and had been on the market for over 6 months with little interest.
So an overpriced home is reflective of a seller who pushes for a higher price and wins out over the agent who recommends a lower, more realistic price?
Ever occur to you that listing agents are capable of overpricing all on their own?
Listing agents are quite capable of overpricing a home.
Some DK diddly about how markets work.
Some DK the local market and inventory.
Some buy the listing.
In a strong local buyer's market , it makes sense to be aggressive on pricing.
I continue to see properties eventually sell for 25-30% of the original asking price.Such properties were not worth their asking at the peak of the market, let alone now.
Most close within 5% of the most recent asking price.
Some sell at and greater than the original asking price especially if bank-owned and priced to sell.
Seriously over priced homes are used to sell right priced homes. Every seller has the choice to sell other people's homes or get sold.
Thanks to Zillow you can see listing price history and get a rough idea by adding CMA to the picture and guess what your offer should be.
Zillow is often WAY off market value. It's all "individual".. which is why some houses get higher than their listing price in a price war. Consider original owners that have added sq ft additions, updated, yet show no official record of turnover sales in the past 15yr and yet are forced to sell at "COMP" prices.
Houses with a history of re-sales get more monetary valuation based on city/county "recordings". So county records, even neighborhood resales of similar-*sized* properties aren't always an efficient way to value property.
I just hope most appraisers do their homework.. and get visuals vs paper work evaluations like Zillow does.
.. Houses with a history of re-sales get more monetary valuation based on city/county "recordings". So county records, even neighborhood resales of similar-*sized* properties aren't always an efficient way to value property. ...
I don't understand your logic. Why would a home with a "history of re-sales" get more value? Any home whether previously sold or not will be valued by appraisers based on the local recently sold comps and condition of the home. Sales history will not change value.
... Consider original owners that have added sq ft additions, updated, yet show no official record of turnover sales in the past 15yr and yet are forced to sell at "COMP" prices...
The appraiser would see the updates when he goes through the property to make the appraisal. S/he would make adjustments for those updates if sufficient to be warranted. They have a standard Conditions Rating of C1 through C6, which they can assign to the property, along with an adjustment value for that condition.
I don't understand your logic. Why would a home with a "history of re-sales" get more value? Any home whether previously sold or not will be valued by appraisers based on the local recently sold comps and condition of the home. Sales history will not change value.
Sales history DOES affect neighborhood value. A house with a history of resales in the past will show more value vs ones that haven't sold from original owners in 15yrs.
For instance, the house next door to us, same sq ft has been turned over 3 or 4 times doubling it's original cost and tax values.. however, it's not been *recently* sold in the past 7yrs.
Another house, "recently sold", uncared for, not updated, not turned over in years goes into foreclosure, and drops the value of the neighborhood sq/ft valuations back below the original cost of the home.
How can you not understand the mis-conscrued financial logic of that?
Sales history DOES affect neighborhood value. A house with a history of resales in the past will show more value vs ones that haven't sold from original owners in 15yrs.
For instance, the house next door to us, same sq ft has been turned over 3 or 4 times doubling it's original cost and tax values.. however, it's not been *recently* sold in the past 7yrs.
Another house, "recently sold", uncared for, not updated, not turned over in years goes into foreclosure, and drops the value of the neighborhood sq/ft valuations back below the original cost of the home.
How can you not understand the mis-conscrued financial logic of that?
Wow, not even sure how to respond. Yes, your logic is misconstrued.
If the house next door were to sell today, it's sale value would also likely take a major hit as compared to it's last sold price 7 years ago when the market was stronger. What it sold for in the past has no bearing on current valuation. It's value is only worth what the market will bear today.
Tax valuation should have dropped over that time as the home is reassessed (ours are assessed annually). However, if you live in one of the areas that only reset tax value upon sale or some longer time frame, then I can understand why tax value may still be high (which also has no bearing on market value).
According to my realtor at the time we bought back in late August of this year, houses were going for, on average, 85% of the asking price in my area.
We ended up getting our house for 68% of the asking price- but it was a deceased estate and had been on the market for over 6 months with little interest.
In my experience, had the home been priced right to start with, it would have been at about 80% of what it was and would have sold quickly for 70-75% of its actual listed price.
Location: Danbury CT covering all of Fairfield County
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I'm selling a home for 20% below the initial asking price due to overpricing. Before there were multiple offers, we tried for Bout 7% below listing price and my client is getting the home for about 2.5% below the listing price.
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