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Current price is $168......could lower down to about 163-164. $15k would be a huge decrease and would put our house under it's assessed value. A house with same sq. footage, same floorplan, same age....(virtually the same house structurally and from street) is price at $169,500 right now. Houses smaller than ours are priced in the 159k price point (1 story vs our 2 story), same size lot though.
We think it's priced right, and have had alot of traffic. I know I'm completely overreacting, but we just really want to be able to move into our new home and it's hard to have so little control over such an important decision.
I'm not saying you should reduce 15k. I was just using my example But it sounds like you have compettion with some high inventory and maybe you would have to reduce 7k (or some other number) or wait a few more months for it to sell. It depends how anxious you are to move it.
As with Funky Chicken, I have sympathy for your position. It's a bad position to be in, and unfortunately your options are limited so it makes it feel even worse.
But I have to point out that assessed value is right in line with what you need to get for the house as numbers that are irrelevant to the current market value of the house. I've seen any number of houses that have sold for (or are sitting on the market below) their appraised value. That was a snapshot at one point in time, and things have changed since then.
Also, if you do have to sell be very careful about comparing your price to other similar homes on the market. The only thing you can tell about those prices are that they haven't gotten the home sold yet. You need to look at the prices of houses that have sold (including repairs, concessions, seller paying closing costs, etc) to see where the real market value is.
On the positive side, if you're having a hard time selling your house, don't assume your new builder will have any easier time with the house you're looking to move into. Perhaps they'd be willing to drop their price a bit to keep you as a customer, allowing you to drop the price on your current home a bit more?
If we are selling a house and put it on the market at one price and only have about $4-$5k of wiggle room....and we would like to make sure we sell the house within the next 2 months....would it be better to just drop the price or keep it the same and be able to offer money in the negotiation process. If we drop the price by $4k, we will not be able to offer closing costs, or any other monies.
We are in a bind b/c we don't have $10k of wiggle room. We need a certain amount in order to afford our next house. I know our realtor wasn't very happy when we told him what our bottom number was (mainly b/c he wouldn't be able to go as low and get a really quick sale).
We are really motivated to sell, but are in a tough spot.....any suggestions???
I sympathize with your position, but keep something in mind. When I hear sellers say, "We need a certain amount to afford our next house" it tells me two things. First, you may be attempting to buy more house than you can afford. Secondly, just because you need it doesn't make it legitimate. What if the person who owned the home you are buying had his priced, $4000, $5000 or even $15,000 higher than you were willing to pay, "Just because he needed it to afford his next house."?
Most people think they, or their real estate agent, sets the price for their home. The cold reality is that the market sets the price. Your house is only worth what a ready, willing and able buyer is ready to pay you at any given time. So, you have two choices; price it to sell, take a reasonable offer and move on - or sit tight and wait for someone who loves your house so much that they will pay your price. Now, given that this is a buyers market, which do you think will happen first?
Also, don't worry too much about what your neighbor has his house priced at. He hasn't sold it yet!
If you are still seeing showings, then just do whatever you can do to make sure your house shows the nicest (i.e. declutter, do a little staging, etc.) but I wouldn't drop the price any more. If you're not seeing showings, you may need to reconsider your bottom line.
Some of the mls systems have a highlighted listing post board...it's called a 'hot sheet'. It helps to bring the listing/change to the attention of the Realtors® if they read it.
From experience. The only way we got an offer on our house was we really droped the price and put it under what the houses around us was selling for. The people still offered 10,000 less. Its a given these days that they are going to offer less because they know they can. So if you have no room for wiggle you have to offer it the 5,000 above what you want so the buyer can offer lower than your asking. Thats just my opinion. Some people will set it low and say priced right, no room for negotiation.
If we are selling a house and put it on the market at one price and only have about $4-$5k of wiggle room....and we would like to make sure we sell the house within the next 2 months....would it be better to just drop the price or keep it the same and be able to offer money in the negotiation process. If we drop the price by $4k, we will not be able to offer closing costs, or any other monies.
We are in a bind b/c we don't have $10k of wiggle room. We need a certain amount in order to afford our next house. I know our realtor wasn't very happy when we told him what our bottom number was (mainly b/c he wouldn't be able to go as low and get a really quick sale).
We are really motivated to sell, but are in a tough spot.....any suggestions???
Your realtor was probably being very realistic to you, and you weren't happy with what he/said. You're asking for a quick sale, and I suspect that you were told you could not get a quick sale at that price.
Your realtor should have done a CMA to determine what the Active prices are, the Expired prices, and the Sold prices, along with the average days on market. That will tell you what to expect that your home will sell for in the average days on market. If you want to sell it faster, then you may have to lower the price.
The location and condition are also prime considerations.
It's difficult to put out a firm, no negotiation price, but if it's priced to sell, then you can do it.
If it looks like you can't sell the home at the price you need, then you just have to consider what is your best alternative.
I wouldn't lower it 5k from 168k to 163k. Buyers who can afford 163k are going to be looking at houses from probably 150-175k, and may offer you 163k regardless of what your listing price is. You aren't going to get any different buyers by lowering it 5k. Everybody knows the price is negotiable. If your house is priced a little high for your neighborhood, just make sure it looks really nice to justify that price. You don't have to spend a lot of money, just de-clutter, clean like crazy, and keep the outside neat and tidy.
Current price is $168......could lower down to about 163-164. $15k would be a huge decrease and would put our house under it's assessed value. A house with same sq. footage, same floorplan, same age....(virtually the same house structurally and from street) is price at $169,500 right now. Houses smaller than ours are priced in the 159k price point (1 story vs our 2 story), same size lot though.
We think it's priced right, and have had alot of traffic. I know I'm completely overreacting, but we just really want to be able to move into our new home and it's hard to have so little control over such an important decision.
I don't understand why people are always pricing their homes according to what other people are pricing their homes at. Most sellers are delirious right now. You have to go by what has recently SOLD in your area. That is where your market is at.
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But it sounds like you have compettion with some high inventory and maybe you would have to reduce 7k (or some other number) or wait a few more months for it to sell. It depends how anxious you are to move it.
