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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.
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.
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.
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Depends- if the price is properly priced for today's market, you may get nothing off the asking price, or may even end up in a bidding war. If it's priced unrealistically as Tahiti mentioned, you've got the potential for more negotiation- but only if the sellers are willing to accept the fact that they've got to reduce their price to sell. Some folks just don't get it, and will hang on forever because "I know my house is worth $XX, and I'm not lowering my price for anyone".
I noticed in most parts of Middletown, houses are still selling fairly quickly and still close to asking price. Let's hope it stays that way. Naturally, in all cases the house has to be priced right from the beginning. Prices seem to be more realistic now.
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!
Excellent advice, tahiti. There's a place in my neighborhood where the seller listed for WAY above what everything else is selling for on that street, and WAY WAY WAY more than they bought it for 2 years ago according to zillow. I shook my head because I'm interested in the place, but it should be listed at about $70,000 less than its current LP (and at this price point 70K is a huge difference). A prospective buyer like myself won't even call. I wouldn't want to deal with a seller who has unrealistic expectations. I get the impression that the seller has all the time in the world and just wants to see if anyone will bite (more like a "make me move" price than anything else).
Excellent advice, tahiti. There's a place in my neighborhood where the seller listed for WAY above what everything else is selling for on that street, and WAY WAY WAY more than they bought it for 2 years ago according to zillow. I shook my head because I'm interested in the place, but it should be listed at about $70,000 less than its current LP (and at this price point 70K is a huge difference). A prospective buyer like myself won't even call. I wouldn't want to deal with a seller who has unrealistic expectations. I get the impression that the seller has all the time in the world and just wants to see if anyone will bite (more like a "make me move" price than anything else).
Since my mom, fiance and future mother in law are all real estate agents I get to hear my share of the stories. It comes down to this, does the seller really NEED to sell the house? If he does than more often than not they will price their house correctly and it will be sold, the agent should know the price but sometimes the sellers are unrealistic and the house sits on the market for over a year. I feel people are caught up in the, I could have sold my house for this much two years ago and mentally they can't get over that hump.
Since my mom, fiance and future mother in law are all real estate agents I get to hear my share of the stories. It comes down to this, does the seller really NEED to sell the house? If he does than more often than not they will price their house correctly and it will be sold, the agent should know the price but sometimes the sellers are unrealistic and the house sits on the market for over a year. I feel people are caught up in the, I could have sold my house for this much two years ago and mentally they can't get over that hump.
unless that price puts them upside down (more prevalent when the purchase was made 3-4 yrs ago)....."i can't afford to bring $x to the closing so I MUST get $y", so they price unrealistically, and the vicious cycle continues, and partially why we're in this mess to begin with.
for full disclosure, I should state that i am a buyer and not a seller and i asked the question as someone that has been looking at lisitngs pretty regularly. someone mentioned to me that they read that homes are selling for only 80% of listing price which seemed a) rather high and b) a pretty large generalization of the entire market.
for full disclosure, I should state that i am a buyer and not a seller and i asked the question as someone that has been looking at lisitngs pretty regularly. someone mentioned to me that they read that homes are selling for only 80% of listing price which seemed a) rather high and b) a pretty large generalization of the entire market.
My recent experience in Morris County was SP was between 4-5% below LP.
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