Recent home buyers- did you bargain?

[nsumner]

Originally Posted by Weighted Average

The asking price of the house I like is over 10% greater than the Zillow estimated price So, my strong card is not so strong after all?

Oh boy, the Zestimate on my house goes up and down every month by a pretty big value. If I was to trust Zillow, I'd sell in a heartbeat and I know many more that would too.

Originally Posted by Squirl

Zillow is a total waste of research in the Texas market because sales prices are not public information and zillow is a computer generated analysis tool that uses data to develop its projected values. When no public data is available, Zillow uses a regression analysis that weighs heavily on zip code plus tax appraisal district public data. Basically I am saying that Zillow is very much a bad choice to use as a decision or analysis tool in Texas.

Totally agree Don't waste your time on Zillow please. Yes it has some cool tools and articles but it just doesn't work in TX for the Zestimates.

As far as your offer for the home, yes, get your Realtor to do a market analysis on it, it will show how much similar homes sold for in the last 6 months in the neighborhood. There is no magic formula when it comes to making an offer. Every situation is unique.

I have found that the market had slowed for about 2-3 weeks and now suddenly it picked up tremendously. I wrote 6 offers since Thursday for 3 different clients and only 2 were accepted (these 2 were new construction). Every single one had multiple offers on it and all of them were less than a week on the market.

Naima

[Weighted Average]

Hi Squirl, yeah I don't have much trust to them in all areas. But! I projected yesterday what my IL house was showing, and our asking price was coincidentally the same as the zillow estimate. But again, we bought our IL place right after that memorable 2008, prices were so low in the area. Original owners in the neighborhood probably get a toothache when they see that page. So, yes, that analysis is pretty generic, cant be applied to all areas....
London29: thanks for the support! Nice to hear it from a Texan
Nsummer: I guess my projections are wishful thinking. I just went from a Seller camp to a Buyer camp so naturally I want to believe the numbers that work for me thanks for the reality check! Will do so!

[aggieplaya]

"Market is slow... Never give the asking price! Agents can be really pushy, ours was a nightmare!"

HORRIBLE advice. The market has NOT been slow for one in Dallas areas. Secondly, I have seen tons of people with this mentality LOSE out on buying a house they really like because they took this stance.

If you find a house that has been sitting on the market for over 30-45 days or a very long time this year, then your strategy may make sense because the 'market' isn't necessarily wanting that home for whatever reason. Maybe the home has a horrible floor plan, or maybe it is next to a really busy street so it isn't picking up any offers. In that case, yes you have the opportunity to negotiate down because you have NO competing offers to deal with. If the home is desirable, it will likely have a couple of offers within a month in a hot market as has been the case recently. You have to look at the situation in each case! Some people think a realtor is being pushy, but in many cases they are trying to help their client actually land the home vs lose out on it and trust me I have seen this happen way too many times only to see buyers bummed out that they offered too little and lost out on a home they really liked.

[Lakewood Parent]

In buying a house, don't focus on what % discount you can get from a seller.

Find an area where you want to buy a house and select the type of house you desire. I believe you've already done this. Then, spend enough time educating yourself about house prices in the area and the state of the market. Information is your friend. There is no substitute for looking at houses in your buying area and looking at actual sale prices recently sold homes in that area. You are ready to buy when you can accurately value a house in your buying area on your own after being shown it and reviewing the standard info about it (i.e. days on market, square footage, bank owned, etc.).

You should know what a fair price for the house should be before you make an offer. There are situations where you see a house and it will be a great deal relative to the asking price (uncommon). There are situations where you see a house and it will be a poor deal (over valued) relative to the asking price (very common).

Many people are not is a position to wait for a good deal or to become an expert in home pricing. Time invested has a value. However, if you are able to do so, you will get a better economic outcome on your home purchase.

Good luck on your home purchase Weighted Average!

[ekta82]

Good information/advice/points @aggieplaya and @LakewoodParent

[mSooner]

Market is slow... Never give the asking price! Agents can be really pushy, ours was a nightmare!

Depends on where you are. Two real life situations from the past week:

My parents got an asking price offer on their home from a showing the first day it was listed (Flower Mound) The buyers had been looking awhile in the area and asked in advance what closing date would be agreeable and what else they could do to make their offer attractive because there were few options in the area and they really wanted the house.

A friend put in an asking price offer on a home in Addison. They were beat by an asking price cash offer.

[Squirl]

Originally Posted by mSooner

Depends on where you are. Two real life situations from the past week:

My parents got an asking price offer on their home from a showing the first day it was listed (Flower Mound) The buyers had been looking awhile in the area and asked in advance what closing date would be agreeable and what else they could do to make their offer attractive because there were few options in the area and they really wanted the house.

A friend put in an asking price offer on a home in Addison. They were beat by an asking price cash offer.

It does depend on where for sure! My neighborhood in the Irving School District, but in Las Colinas, has tons of houses for sale that languish on the market for months - even years! I absolutely dread trying to sell it next year! Very jealous of the hot market in other areas, so you do need to know the area you are seeking to purchase in and get good relevant data specific to THAT area. There are not generalizations that apply when you are serious about buying a property.

[lollygagger428]

Originally Posted by Squirl

Zillow is a total waste of research in the Texas market because sales prices are not public information and zillow is a computer generated analysis tool that uses data to develop its projected values. When no public data is available, Zillow uses a regression analysis that weighs heavily on zip code plus tax appraisal district public data. Basically I am saying that Zillow is very much a bad choice to use as a decision or analysis tool in Texas.

Totally agree; it's a complete JOKE! I have asked them numerous times to change things. They have the wrong number of bed and baths. They have a "zestimate" for the house two years before it was even built. Also, it's never been worth the highest amount they have, nor the lowest. It's a scam.