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Hi all...found a house I would like to put an offer on...just curious as to what people are paying for there house compared to the asking price?...did you just pay full price?...offer 5% or 10% less?...what is a good starting point in this market?....thanks
Hi all...found a house I would like to put an offer on...just curious as to what people are paying for there house compared to the asking price?...did you just pay full price?...offer 5% or 10% less?...what is a good starting point in this market?....thanks
It will really depend on the area you are buying in and the recent comps that you RE Agent can pull for you. In the neighborhood we bought in this past summer the comps showed the previous three sales as getting 100% list price with no help at closing and DOM less than 2 weeks; so we needed to make sure our offer was strong to get the house or risk losing it. Our house was listed slighlty higher than the recent comps so we made an offer that including help with closing from the seller would equate to 98% of the asking price which made it equal to the previous comps. We could close in 30 days with no contingencies other than appraisal / inspection and the seller agreed! So you need to take into consideration the recent comps in the area, whether or not you are looking for the seller to help pay any of your closing costs, and whether you bring any contigencies to the table which may hurt the strength of your offer. All these should factor in to determining what your offer should be.
That is just my perpsective as a recent buyer. I'm sure some of the seasoned pros here can give you more detailed advice! Good Luck!
When calculating DOM and % of asking Price paid, make sure you are looking at the Archives data for the property in question, and for your comps.
Re-listed homes, also called "washing the listing," skew the data tremendously.
Basically it makes it nearly impossible to do a good comparison of percentages paid or true comparative DOM, or to easily accept any figures promoted as being representative of a particulary property or area.
Other than that little scandal, figure on paying within 5% of asking. Hot properties may go for more than asking price.
Other than that little scandal, figure on paying within 5% of asking.
Mike, is the above true for FSBOS or those people who use limited services that basically just list in mls for a flat fee? IMHO (and inexperienced opinion), it seems that more often than not FSBOS & limited listing services seem to be a bit higher than other listings in the same neighborhood. I realize that a FSBO can sometimes get the price as right as a professional would. But generally do FSBOS close within that 5% range?
Mike, is the above true for FSBOS or those people who use limited services that basically just list in mls for a flat fee? IMHO (and inexperienced opinion), it seems that more often than not FSBOS & limited listing services seem to be a bit higher than other listings in the same neighborhood. I realize that a FSBO can sometimes get the price as right as a professional would. But generally do FSBOS close within that 5% range?
Good question, PDXM.
No idea.
I did see a survey last year that said just over 70% of FSBO's say their biggest mistake is overpricing the property.
Mike, is the above true for FSBOS or those people who use limited services that basically just list in mls for a flat fee? IMHO (and inexperienced opinion), it seems that more often than not FSBOS & limited listing services seem to be a bit higher than other listings in the same neighborhood. I realize that a FSBO can sometimes get the price as right as a professional would. But generally do FSBOS close within that 5% range?
If realtors always got the price "right" you wouldn't see so many price reductions across the board...
There is no magic right price for a property, you set the price near what the market rate is at the time based on comparable sales taking into account your own home's pros and cons and hope for the best....
It really isn't rocket science. We were lucky to have access to quite a few good comps and MLS had a large number of listings at the same time as us.
The reality is, considering the range of realtors and FSBO's when we sold 6 mos ago, the selling and asking prices in our neighborhood were all in a very narrow price per square footage range.
We priced our home within that range and sold within a week above asking price.
Hi all...found a house I would like to put an offer on...just curious as to what people are paying for there house compared to the asking price?...did you just pay full price?...offer 5% or 10% less?...what is a good starting point in this market?....thanks
We just closed on a home mid of Nov in Fuquay Varina. We offered FULL price .. as all homes in that area were getting full prices and comps all matched up. So, we asked for all appliances and $1500.00 towards closing.. Geez, you would have thought we were asking for the moon. The sellers haggled and eventually we got appliances and $1000.00 towards closing. It all worked out and were very happy. Though sellers in the area seem to get there asking price, also house was only on the market 5 days!
There is no magic right price for a property, you set the price near what the market rate is at the time based on comparable sales taking into account your own home's pros and cons and hope for the best....
It really isn't rocket science. We were lucky to have access to quite a few good comps and MLS had a large number of listings at the same time as us.
We priced our home within that range and sold within a week above asking price.
Congratulations! Sounds like you guys did a great job on your research.
I'm not saying it can't be done. I'm just saying IMO I don't always see FSBOS setting prices within that range that you talked about. Given where I live the houses on the same block can vary greatly in size, condition etc than a standard suburb that is under 15 years old, thus you can have a home worth 500K beside a home that is only worth 350K. So the comps are trickier.
This is a separate point but kind of related. Generally the thing that gets me about pricing based on Comps for BOTH Realtors and FSBOS is that 2 identical homes could be priced differently because of the upgrades. Do the comps tell you what sort of carpet was installed (builder grade or high end) or do the comps tell you the brand of the stainless steel appliances? I'd pay more for a Dacor Gas Stove than a GE gas stove. Maybe, the comps do have this info... I completely admit that I am not a seasoned real estate expert. But IMHO the stuff on the inside of the house (carpet, quality of appliances, etc) can bump up the price of a house even though it's the same layout and style of my house. I can see how when someone sees a home just like theirs for sale for 350K they automatically think their home is worth 350K. But maybe they don't have the granite counter tops or up graded cabinets, etc. I think it's hard for some people to be objective about the value of their homes and thus FSBOS can have the tendency to be over priced in these situations. Separating emotions from the numbers can be the hard part.
BUT that is not to say all FSBOS are over priced. You obviously got it right and you obviously know what you are doing. You should feel good about that!!
Believe me I'm not wild about getting ready to pay 33K plus to sell my house. But I know how the market works in the price range we are in for our city, so I don't really have a choice.
So if I was to offer $250 for a house that is listed @ $270...am I being unrealistic?....has been on the market for 30 days!...thanks for all the replies
In determining how strong or “realistic” an offer of $250K is for a house listed for $270K, you may want to consider the following:
1) Do the comps in the area support the sellers $270K listing price? Maybe the sellers are being unrealistic with their valuation. That doesn’t mean the sellers will see the light and accept your lower offer though since they may not be desperate after only 30 days on the market. If you are working with a RE agent they should be able to pull the comps for you so you can determine this.
2) Consider that the seller may need full asking price to cover the cost of the next home they are purchasing…. so even if there list price is unrealistic…they may not be ready to come down after only thirty days.
3) If the house is priced correctly at $270K but they accept your $250K offer I would be very surprised to see the sellers help at all with any closing costs or do any significant repairs should any be identified during the inspection process unless they are desperate. If the sellers are getting only 92% of the asking price they will most likely feel that they have given enough concessions already.
4) If your first offer is not rejected, you can bank on a counter offer on their part as an attempt to get you closer to their asking price.
Are you working with a Realtor? That really would be the best way to help craft the best offer that protects your interests. Good Luck!
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It depends on many factors......
