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Price seems to be kicking quality's tail these days.
My wife and I were discussing this. We've always said we'd pay more for better quality or a home that had all the features we were after. But there are a lot of folks out there that only look at price per square foot and how much the house down the street sold for in order to low-ball you.
We're asking $140k for our home (real fair market value should probably be $150k).
We could go as low as $130k and be 'ok'.
But if we list for $130k buyers will offer $120k or lower.
Once we list for $130k there's no going back.
We could bank on never seeing an offer above $125k.
At least listing at a higher price allows some room for negotiation.
Listing your absolute lowest price you can take allows no room.
offtopic but drjones I agree- we are in the same boat. We could probably price 25K higher and will "take" as a floor 25K lower than we are priced, however, everyone is negotiating in this market (even though our submarket is still strong) so I need to pad it a bit. If your home is in pristine condition, I think you can make a case for the price, as long as comps support it, again, for MY market.
But if we list for $130k buyers will offer $120k or lower.
Once we list for $130k there's no going back.
We could bank on never seeing an offer above $125k.
At least listing at a higher price allows some room for negotiation.
Listing your absolute lowest price you can take allows no room.
I respectfully disagree w/this advice. Its possible to have multiple offers on your home even in the way conditions are today. There is no guarantee that someone will "lowball" you (whatever that means).
As we say time and time again. The market (qualified buyers) will determine what your house is worth. If you listing is too high you will not get any sniffs. If you get solid traffic w/offers at or very near asking price from qualified buyers, your on target. Simple as that.
Jack, I think we all know what lowballing means. It's trying to get something for nothing.
The seller is asking $1.00 for a widgit.
The buyer can afford $1.00 for a widgit
Random Dude 2 miles away sold his widgit for personal reasons for $0.75.
Therefore buyer thinks he is entitled to buy your widgit for $0.75.
So he offers you $0.75 for your widgit because of what someone else sold for.
Even though your widgit is actually larger, newer, and shinier that the Random Dude's widgit it was somehow comparable which makes your widgit worth less.
Then the senseless widgit price negotiation starts.
You counter offer your widgit for $0.90 with $0.05 closing costs.
Widgit buyer moves on because you weren't offering your widgit for as low as the Random Dude.
Widgit buyer finds Random Dude #2 who is also in dire straights who's willing to sell his widgit for $0.75.
Original seller is left holding his widgit because he isn't despirate enough to sell his widgit that low.
He offered it at a fair price and yet he's getting the shaft.
Tomorrow he may be despirate enough to sell for $0.75.
I hear your argument. His widgit IS actually only worth $0.75. Because that's what the market will bare.
But that's car market type economics. You know your car will be worth less after you buy it due to wear and tear. Is this where the housing market is going?
Jack, I think we all know what lowballing means. It's trying to get something for nothing.
The seller is asking $1.00 for a widgit.
The buyer can afford $1.00 for a widgit
Random Dude 2 miles away sold his widgit for personal reasons for $0.75.
Therefore buyer thinks he is entitled to buy your widgit for $0.75.
So he offers you $0.75 for your widgit because of what someone else sold for.
Even though your widgit is actually larger, newer, and shinier that the Random Dude's widgit it was somehow comparable which makes your widgit worth less.
Then the senseless widgit price negotiation starts.
You counter offer your widgit for $0.90 with $0.05 closing costs.
Widgit buyer moves on because you weren't offering your widgit for as low as the Random Dude.
Widgit buyer finds Random Dude #2 who is also in dire straights who's willing to sell his widgit for $0.75.
Original seller is left holding his widgit because he isn't despirate enough to sell his widgit that low.
He offered it at a fair price and yet he's getting the shaft.
Tomorrow he may be despirate enough to sell for $0.75.
I hear your argument. His widgit IS actually only worth $0.75. Because that's what the market will bare.
But that's car market type economics. You know your car will be worth less after you buy it due to wear and tear. Is this where the housing market is going?
I'm with you Jones! All I kept reading was, "price low, price low or you won't sell". Don't believe the hype. It's not like that everywhere. I sold my house without going to the "bottom". It can still be done. I'm not saying it can be done EVERYWHERE but, it can still be done. I'm living proof.
And before some people jump all over me. I'm not giving advice. I'm giving my opinion and the facts of what happened in my case.
Location: Halfway between Number 4 Privet Drive and Forks, WA
1,516 posts, read 4,590,259 times
Reputation: 677
Quote:
The seller is asking $1.00 for a widgit.
The buyer can afford $1.00 for a widgit
Random Dude 2 miles away sold his widgit for personal reasons for $0.75.
Therefore buyer thinks he is entitled to buy your widgit for $0.75.
So he offers you $0.75 for your widgit because of what someone else sold for.
Even though your widgit is actually larger, newer, and shinier that the Random Dude's widgit it was somehow comparable which makes your widgit worth less.
Then the senseless widgit price negotiation starts.
You counter offer your widgit for $0.90 with $0.05 closing costs.
Widgit buyer moves on because you weren't offering your widgit for as low as the Random Dude.
Widgit buyer finds Random Dude #2 who is also in dire straights who's willing to sell his widgit for $0.75.
Original seller is left holding his widgit because he isn't despirate enough to sell his widgit that low.
He offered it at a fair price and yet he's getting the shaft.
Tomorrow he may be despirate enough to sell for $0.75.
I hear your argument. His widgit IS actually only worth $0.75. Because that's what the market will bare.
I love this example, it made me laugh... a widget. Can I interest you in a widget today?
+2 for you Dr. Jones for giving me a laugh.
I hope we both sell our widgets! Good luck...
My family and I are moving back "home". The area we live in is just not for us.
I would be prepared to take a loss on the house. If you want to sell fast you have to be the cheapest.
No offense, but moving is very stressful. It always takes time to adjust to a new area. 3 months is hardly anything. I mean most people haven't unpacked their boxes. It takes most people at least a year to feel settled.
Last edited by Silverfall; 03-13-2008 at 03:42 PM..
Reason: spelling
Not only a loss, but also a marketing fee and deed preparation, as well as fix anything that you looked the other way on or your building inspector didn't catch. I look my new clients in the eye before we sign an Exclusive Buyer Reprsentation Agreement and ask them, "are you prepared to stay in this home for five or more years?" If not, we have a serious discussion as to whether or not I'm the right agent to represent them.
Thanks for all of the advice once again! Mr. Silverfall, my family and I are not happy with not only the area but the schools are not what we expected. AND, my husband does not like the company he is working for. The people in our area are very cold and unfriendly. And just so you know, my husband and I did research the company and the area the best we could. The company lied to my husband and put him in a different position than he was hired for. Also, the principal misrepresented the school and told us there was a lot of parent/teacher involvement. That is so far from the truth. As far as the house selling, we do not mind moving again. We actually are looking forward to it since we know where we are going - our "home". With many friends and a great support system (something that we do not have here!) my husband also has a once in a lifetime offer back "home". We are staging our house and the house will be clean as a whistle. When we moved from our other home it sold in one day. We are keeping our fingers crossed and saying prayers that everything will go smoothly. Have you ever heard of a smooth move?
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