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Hello. We are looking for a SFH in 76179. We found one that we really love in almost all aspects. The home is 2600 or so and single story on a corner lot. Compared to the recent sold comps in the last 3 months, it's WAY over priced. Avg home in the comps are 190K-220k. What we were wondering is what or who sets the price? The seller on realtors suggestion?
Are corner lots "prime"?
Are corner lots on the busier neighborhood street more valuable?
The sellers have been on the market for 45 days and only lowered the price 10k after 1 week to just below 250k.
What gives? It's a nice place, but because we're trying to buy in a slower time (summer over/school back in) there are less options now.
I'm pretty sure if we had walked the homes that sold this last summer, we would have chosen one of those first. Still, I love this home, except for the corner lot & busy street, and high utility bills, and old looking AC unit. Could it be that these people are just greedy? (On Redfin.com) the same home sold in 2011 for 157k. All they did was paint, put ugly brown/yellow granite counters in, new carpet-3 yrs ago , and new sod. Prob more stuff, but not 100k worth to justify the list price). And the upgrades aren't new trendy upgrades, just a bit better than before. Still, as we all know, some home upgrades don't mean 100% RTI. ESP for painting & carpets. Wood floor, new fancy kitche? maybe. But this house has neither. I just love the flow and lot to grow my family in and make my own. .
Someone help me understand how homes are priced.
Seller sets the price. IMHO corner lots are LESS valuable due to lack of privacy and proximity to busy street.
SOME sellers listen to their agents and are able to set a price that makes sense, but many have an overinflated idea of what their home could bring, and you could spend a decade trying to figure that out.
All you can do is make an offer you think is closer to the house's worth and hope they accept. If the house is THAT overpriced, though, be prepared for them to be stubborn and unable to negotiate.
Some people like corner lots, some don't. In developments where the lots run a bit small, the down side is that the back of the house faces the side of another house and that house could be uncomfortably close. Even on larger lots, you still have the possibility of having tax assessments related to two streets instead of one, and bad drivers (or kids) may drive across your corner from time to time.
If you are using an agent, ask your agent to contact the listing agent and ask him/her to explain how they arrived at the listing price. It's a legitimate question. Sellers set the price but usually the price is based on data provided by the agent and, yes, that data is sometimes wrong. If that's the case, your agent can help the other agent see the mistake.
Seller sets the price. IMHO corner lots are LESS valuable due to lack of privacy and proximity to busy street.
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Thats exactly what I've been reading & seeing etc about corner lots, how they're a bit of a pain. I still love the home, just not the lot. The taxes are higher and the insurance is 2-3x as much as the neighboring homes. ( yes, we got quotes on a few just to make sure we could afford everything).
I guess I'm just going to have to wait it out and stalk the hell out of the home online until the price drops. (Maybe they'll come to their senses)
The house we bought (this month) originally listed at $298,000 - at that price I glanced at the listing and didn't even look at all the pics - it was way out of my price range and much higher than comps. They did the $5,000 a month drop thing and when we finally looked at it, the price was $260,000 which still seemed high, but we liked it and offered under $245,000 and they snapped at it without a counter.
My RA sent me sales summaries for the area every two weeks, so I knew what things were actually selling for and it was unusual for a property to be so badly priced (well, and SELL anyway, there are still properties sitting for months with a non-market price). Usually the difference between asking and selling price, in that range, would be no more than $5,000 or so - not $50,000.
At closing we got paperwork indicating that the sellers had a loan balance of $300,000, which explains the first attempt at pricing - I think they financed part of the build of their new home by refinancing this house and taking the money out of it.
Last edited by PNW-type-gal; 09-19-2013 at 08:40 AM..
The market ultimately sets the price. If it's too high, it will just sit. If it's too low, people will offer over asking. If you trust your agent, ask them for an opinion, but some agents will say to offer at asking, so that they receive a higher commission upon sale (RE agents are sleezy).
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