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I agree. I have buyers that won't even look at a house if it's listed $1 above their price. But would offer full price if it was the right price and in their budget.
I guess it's a LOCAL and maybe buyers there expect to haggle. But the ones that really want to haggle and get a discount will likely be a real PITA to deal with during the process, such as asking for major concesssions for minor home inspection issues.
A serious buyer with a good agent would offer, or negotiate to, market value. Either the first buyer wasn't serious, or your house is worth what their final offer was.
I strongly advise sellers to hire an appraiser prior to listing their home to come up with a listing price. I sold a home where the owner did so and closed on the sale very quickly. The buyer had a clear idea of what the home prices in that specific neighborhood and was pleased with the listing price. There was very little haggling involved and both parties were happy.
Well I'm a LI buyer. I have very specific needs/wants with a new house. So I look at everything which meets my needs/wants in the specific school district.
There are 6 towns/villages which feed into the district.
By and large, anything "move in ready" in one town is priced 20%+ higher than comps indicate.
Another town 40%+ higher than comps for "move in ready"
Two towns I don't even bother with as I don't want to live there.
The remaining two...........are a mix of very UNREALISTIC listed prices for "move in ready" and per comps "need work".
Frankly, it is a pain in the backside being a buyer these days.
You have a rock bottom price. The buyer has a "no way am I going one dollar higher" price.
Your problem is not that your house is priced too low, it's that your buyer was smart and got tired of bidding against himself. He had reached his "not one dollar more" limit and you wouldn't come down. Guess he couldn't afford your house for what you want to sell it for. Next.
If anything, I believe the tight gap between listing price and bottom price hindered the process and gave the buyers a mistaken impression that they could have the house for less than we were willing to sell it for . . . or less than it is worth. The reason I say this is that the discount between listing and bottom price for our home is currently less than the average for the area, perhaps creating an impression in buyers' minds that they might be overpaying. If we had priced the home higher (again, still within a reasonable range for the market), we could have come closer to that average discount.
I think what has happened is because of it being so much of a buyers market there are plenty of those out there trying to get a bargain and they think if they low ball offer on enough houses they will finally hit the right one. I does take patient to sell right now.
I strongly advise sellers to hire an appraiser prior to listing their home to come up with a listing price. I sold a home where the owner did so and closed on the sale very quickly. The buyer had a clear idea of what the home prices in that specific neighborhood and was pleased with the listing price. There was very little haggling involved and both parties were happy.
Just my $.02 worth.
That's telling them to pay hundreds of dollars to an appraiser to help determine the value of their house when that is something that real estate agents get paid a commission for. So, did they pay you a full commission and pay for an appraisal? Seems wrong to me.
The house I will be selling is at a much lower price point, but it has a killer location. I don't give a rat's arse about an appraisal and wouldn't pay one of those criminals 50 bucks for it. Half of our market is cash, and under 100K, that number is even higher. Inspect and appraise all you want, but it is not going to affect what I know it is worth. If you are trying to buy with FHA or Franny with 3% down good luck, cash talks (so do bank statements); BS walks. Read my thread about Listing Agent tricks........they might be more concerned about their I-phone bill, than an extra 20K in your pocket.
I don't give a rat's arse about an appraisal
Half of our market is cash, and under 100K, that number is even higher.
Inspect and appraise all you want, but it is not going to affect what I know it is worth.
Good luck.
Be sure to report back with your outcome. OK?
I agree. I have buyers that won't even look at a house if it's listed $1 above their price. But would offer full price if it was the right price and in their budget.
I guess it's a LOCAL and maybe buyers there expect to haggle. But the ones that really want to haggle and get a discount will likely be a real PITA to deal with during the process, such as asking for major concesssions for minor home inspection issues.
A serious buyer with a good agent would offer, or negotiate to, market value. Either the first buyer wasn't serious, or your house is worth what their final offer was.
It must be a local thing because homes in our region rarely sell for asking price unless the listing is priced so far below market value that there's a bidding war (also rare these days). I'm a native to the area and as far back as I can remember, people have been haggling on homes. Sellers expect to negotiate down from the listing price. (It also typically takes about three months from contract to closing here and you absolutely cannot do the transaction without an attorney as you can in some other parts of the country.)
During our interviews of agents, we had one recommendation to price our home seemingly below market value and we were shown "comps" that were clearly less worthy than our home in terms of location, amenities, condition, etc. I was wondering what some of you think about this. Is it ethical? Since we had done our homework in thoroughly researching area sales and listings and do not need to move urgently, we rejected this approach. While the agent probably would have moved the house more quickly and taken slightly less commission, we would have taken a big hit on the sale price. In fact, the last serious offer received from the buyers mentioned in my original post was higher than this agent's suggested listing price.
During our interviews of agents.. we were shown "comps" that were clearly less worthy than...
That's like apples and tomato's.
Either you were shown "comp's" or you weren't.
If you were... then "clearly less worthy" shouldn't enter the discussion.
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