Housing list price vs. sale price (Chandler, Gilbert: short sales, real estate, foreclosures)

[Soperman]

The family & I will be moving to the Chandler/Gilbert or Ahwatukee area soon and for the criteria in houses we are interested in, online research shows list prices in the range of 200-250k.

Once we start placing bids on houses what should we expect as buyers on the flexibility from list prices? Within 10% of list price? 15? 20? or zero?

Purchase timeframe would be between July & Dec. of this year.

[Skywayy2001]

get an agent..they will tell you list prices vs. sold prices in the neighborhoods you are looking in

[AZJoeD]

That is an extremely difficult question to answer since List Prices are all over the board. There is no answer. I tell my clients that "list price" means nothing. It is market price that you need to determine.

Is 20% off of a home that is overpriced by 25% a good deal? Is 10% off of a home that is priced 10 % below market too low? What if the home is priced correctly and is a great home in a great location? Maybe 0% is a good deal.

When you begin your search in earnest find yourself a good agent that can research the property to determine if it is a good home, run the comps to get a valid price and then help you to negotiate the deal. It will cost you nothing.

[Soperman]

I'm kinda skeptical of asking agents since they are in it for making money. Their answer might be skewed in their favor.

[Lovegun]

It all depends if the houses are priced accordingly and the amount of work needed.

I am not familiar with your price range, I would speak with an anent that works in your area.

[Klaudia]

We are also looking to buy, but we are looking for a CHEAP little beat up house that we can buy cash.
I'm also wondering the same thing as the OP.
The reason I'm here is because I want to know if what my agent tells me is the same as what's really going on out there.

My brother had an experience where the house was listed for $22k, then he was told to raise it a couple thousand, because someone else had a higher bid in, then he was asked another $5k, he agreed, then asked for more. He didn't accept. Later that same property, which supposedly someone else was bidding on was back on the market, actually never went off the market.
This kind of games are what worry me when trying to purchase one of these cheap homes.

[skycrane]

the list price means nothing in this market right now. Short sales are being priced way low and foreclosures are priced high from the bank being greedy. Don't look at the taxation value either, it's meaningless. The only way is to look at comps that have "actually" sold in your area and compare to what's on the market. Also anything that is priced right will have multiple offers on it in a day or two. PM sent. cheers.

[AZJoeD]

Originally Posted by Klaudia

We are also looking to buy, but we are looking for a CHEAP little beat up house that we can buy cash.
I'm also wondering the same thing as the OP.
The reason I'm here is because I want to know if what my agent tells me is the same as what's really going on out there.

My brother had an experience where the house was listed for $22k, then he was told to raise it a couple thousand, because someone else had a higher bid in, then he was asked another $5k, he agreed, then asked for more. He didn't accept. Later that same property, which supposedly someone else was bidding on was back on the market, actually never went off the market.
This kind of games are what worry me when trying to purchase one of these cheap homes.

This is precisely the point. The house was listed at $22K, but it was not going to sell for $22K (as you pointed out). So again, list price means nothing if the property is not priced correctly to begin with. If your agent had done a Comparative Market Analysis and had researched the home he would have found it to be a "come on". Searching on the Internet will only get you so far. There are too many "too good to be true" listings out there.

[Klaudia]

Should we shop on our own, i.e. make offers directly to listing agents or should we just get our own agent?
Like I mentioned, we're only looking to spend about $35.
Thx!

[Jukesgrrl]

Originally Posted by Soperman

I'm kinda skeptical of asking agents since they are in it for making money. Their answer might be skewed in their favor.

You are skeptical of believing a licensed agent but you are willing to trust a total stranger who tells you something on a message board?

Be advised that I am NOT a real estate agent. Never have been and never will be. There are way easier ways to make a living. But I do know a few and the good ones have studied very hard and have amassed a lot of experience to be considered successful. I have also fired two who weren't behaving professionally.

Agents get paid because agents do a lot of work in any market, but especially in a difficult market such as the one we are in now where "there are no rules and they're changing all the time." One of the things that you're paying an agent for is their knowledge of the homes and sales history in a specific area. Not only are asking and selling prices different from place to place, but the actual laws surrounding the purchase of real estate differ vastly from state to state.

Your OP indicates that you don't have much experience in purchasing property. You are, therefore, exactly the kind of person who will get taken if you don't have a knowledgeable guide in this market. Realtors don't tell you comps based on a feeling they have. They do research to get the info and they have to know a neighborhood to be aware of how and when to move. You will never know what to bid on a house without accurate comps.

I'm not saying there are no unscrupulous Realtors. There are plenty. But if you choose one from a reputable agency, based on recommendations from people you trust, and one who steers you to a good home inspector, you are more likely to save money on a home deal than pay too much.

You can meet Realtors at open houses in your target neighborhood. When you meet one you click with, ask them for references -- then CALL the references. There are Realtors who specialize in first time home purchases, condos, etc. I wouldn't, for instance, bid on a foreclosure unless I had a Realtor who had a foreclosure certification.

You are taking on an employee. You should have someone you're comfortable with, one who returns your calls promptly, and someone who makes you feel s/he understands what your needs and desires are. Pick carefully and stick with the agent. It's not fair for clients to have an agent work on their behalf for months and then buy a house using an agent they met last week. If you feel the Realtor you're working with is not doing a good job, by all means break the relationship, but tell them why. They won't improve if they don't know what they did wrong.

Believe me, they will be earning the 3.5% they are paid.