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Thank you all for your input.
I worry if I list at the appraised amount buyers will want to negotiate anyway, because they won't want to pay the full listing price. But I'm thinking of listing at $169 900.
What do you think?
Without knowing your real estate market in Canada, any advice you'd be given would be general in nature, and may or may not be applicable to your situation. Why don't you contact some real estate agents in your area to list your house; they'd be much more qualified to give you proper pricing advice.
Generally, if you list above appraised value, no one will come in at an offer above the appraised value, so you would either get lowballed or have to do a price reduction or two in order to generate decent offers.
Also, you never mentioned who conducted the appraisal; was it yourself for private purposes? Anyone offering on your house that requires financing will most likely have another appraisal done upon your house ordered by the bank, and that may have a different price entirely.
If you're really looking to hit a certain price, your neighborhood is blazing hot with rare availability, your house is in impeccable condition, and the comps support your pricing, the smart thing to do would be to underprice your home by a little bit in order to generate multiple offers. That would be the best way to receive offers over your appraised price.
Thank you all for your input. I worry if I list at the appraised amount buyers will want to negotiate anyway, because they won't want to pay the full listing price. But I'm thinking of listing at $169 900. What do you think?
If someone shoots you an offer at a price lower than the asking price, at that point you have 2 choices. Take the offer, or make a counter offer. If you want to hold your price, counter offer at the asking price, and you can include a copy of the appraisal with the counter. This often works to get your price.
Gang, some people do pay more than the appraised value of a property, knowing that they will be bringing money to the closing table. (The lender will likely only loan up to the appraised amount.)
I frequently see homes with good sized lots and nice homes. Both are the primary contributors to the appraised value. It is the OTHER amenities that may contribute less value -- in-ground pools, an additional dwelling unit, cabana house, detached workshop, etc. All of these do add value to a property but not to the extent of the house and parcel.
But, if you buy only a home and land and want to add those amenities -- in-ground pools, an additional dwelling unit, cabana house, detached workshop, etc. -- you will pay a LOT MORE building those amenities than buying property with these amenities already there. Think "buying new" vs. "buying used".
So, if the home and parcel are in good shape AND if the amenities are in good shape AND you can bring extra cash to the table, it may be more cost effective to buy existing than the build new.
Why not list it at appraised value and let the prospective buyers bid it out. If you get multiple offers, have each of them bring their best offer to the table. As stated above, a lot of times people will pay over asking price so they can help guarantee that they get the home. This usually requires even more money out of pocket because lenders generally will only lend up to the appraised value of the house.
I listed at 119.9k, got an offer for 110, and countered with 117, which they accepted. this included a sellers assist (3%), REA commission, fees, etc, so I would wind end up netting 105k.
the problem is the appraisal came in at 110 high, which is total BS, but whatever. regardless I am not going to budge off of netting 105, so either they have to bring in more downpayment money, or I could supposedly finance the 7k difference myself, or something. we'll see what happens. if it falls thru, I might actually increase the asking price to 124.9k and hope I got an appraiser who isn't an idiot next time. I would up the price b/c it gives me more room to negotiate down, and b/c I had that offer in less than two weeks of when I listed.
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