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I would appreciate any input. We looked at a house on a spot built cul-de-sac of about 20 houses built in 1995. All are original owners. There is one house on the street that has been on the market for 1 year priced at $2 million-no price lowering. A new listing just went up for 1.5 million but the house is a very "contemporary" style house (inside and out-formica, sloped ceilings, skylight) that seems dated compared to the new construction being built now. The surrounding houses on the neighboring blocks are not as big as this cul-de-sac or go for as much money. The houses in the neighborhood that are in the 1.5 million dollar price range are generally newer built with granite and hardwood. Where does the pricing come from? What is a reasonable offer without being offensive-we would only want the house if we could have money left over to update it and make it more post modern style. Sorry for this long post and thanks for taking the time to read it.
First off, are you working with a realtor? If so, they should be able to give you some in depth information on the pricing of this home. If there truly are no other comps (homes of similar sq ftg, in the neighborhood, similar amenities, that have sold within the past 6 to 9 months), then it does become harder to establish the fair market value.
It's really immaterial what other sellers are asking for their home - it's the price of homes that have sold that establishes market value. You might try figuring $/sf on the little bit smaller homes in the neighborhood. Apply that $/sf to the home you're considering, but keep in mind that the more sq ftg, the less $/sf. Also, main floor sq ftg is valued much higher than sq ft on an upper or lower level. Lastly, you might try county records. Some county websites are very good and will actually give you comps for the home , and/or comps for tax assessment purposes. Also, you might consider the assessed value of the home. Are homes selling for close to the assessed value? Higher? Lower? That will give you at least a ballpark figure.
Again, if you're working with an agent, this is their job to do this kind of research for you.
I would appreciate any input. We looked at a house on a spot built cul-de-sac of about 20 houses built in 1995. All are original owners. There is one house on the street that has been on the market for 1 year priced at $2 million-no price lowering. A new listing just went up for 1.5 million but the house is a very "contemporary" style house (inside and out-formica, sloped ceilings, skylight) that seems dated compared to the new construction being built now. The surrounding houses on the neighboring blocks are not as big as this cul-de-sac or go for as much money. The houses in the neighborhood that are in the 1.5 million dollar price range are generally newer built with granite and hardwood. Where does the pricing come from? What is a reasonable offer without being offensive-we would only want the house if we could have money left over to update it and make it more post modern style. Sorry for this long post and thanks for taking the time to read it.
FYI- you may have trouble getting financing if there are no solid comps available...especially when you are talking a jumbo or super jumbo loan.
If your realtor is having trouble with coming up with a market value I would go ahead and get an appraisal. Make sure you use a company that does a lot in your area though.
If a competent RE Agent can't comp it just what do you think an appraiser is going to do?
Good point, here when the appraiser runs into problems which is happening more and more lately) he/she calls the realtor for ideas on comps or value.....
Good point, here when the appraiser runs into problems which is happening more and more lately) he/she calls the realtor for ideas on comps or value.....
Yeah - I know...I have helped a couple of appraisers do weird properties. I just don't think appraisers are a very viable resource on residental property which is hard to value. You want some smart old agent who has been around forever, knows all the properties of that class, and the local market directions.
I got one for the students who want to try...
Neighborhood is 1/2 acres...ranches...3000 SF. 700K.
House is 9212SF on a 2.5 acre lot.
Has at least 8 cars worth of garage one place or the other.
Has swimming pool...lazy river...diving pool with cliff. A little storage building of around 4000 SF.
Nice view of the northern Las Vegas Valley.
Wonderfully well constructed over a three year span...
I would appreciate any input. We looked at a house on a spot built cul-de-sac of about 20 houses built in 1995. All are original owners. There is one house on the street that has been on the market for 1 year priced at $2 million-no price lowering. A new listing just went up for 1.5 million but the house is a very "contemporary" style house (inside and out-formica, sloped ceilings, skylight) that seems dated compared to the new construction being built now. The surrounding houses on the neighboring blocks are not as big as this cul-de-sac or go for as much money. The houses in the neighborhood that are in the 1.5 million dollar price range are generally newer built with granite and hardwood. Where does the pricing come from? What is a reasonable offer without being offensive-we would only want the house if we could have money left over to update it and make it more post modern style. Sorry for this long post and thanks for taking the time to read it.
I don't get buyers who are worried about making an "offensive" offer.
Business is business and the worst case is that they'll (seller) reject it.
You'll never get a pat on the back from the seller for offering more $$, just remember that.
Start as low as you can and work up. You can't start high and go backwards.
Last edited by CouponJack; 08-31-2007 at 06:57 PM..
I recently sold a house that was different than anything in the area. My Realtor almost had a heart attack when I told her what I wanted for it. The buyers had it inspected 6 ways to Sunday but there was no appraisal done. I am sure that someone told the VA loan officer that it was a fair price or it would not have sold. I wish I understood how it worked, but the truth is if the buyer had felt the price was not justified it would not have sold. If the financing is not a concern the only real question is do you feel comfortable with the price?
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