topic Re: real estate question in Community Chat

real estate question

goldensrbest — Mon, 04 Mar 2024 18:54:42 GMT

In a hot market, low inventory when listing a house, should one ask a few thousand more than agent has said?

Re: real estate question

Puppy Lips — Mon, 04 Mar 2024 18:56:27 GMT

I would. You can always drop the price.

Re: real estate question

SilleeMee — Mon, 04 Mar 2024 18:59:36 GMT

The buyer(s) will always want to negotiate so it's a good idea to list it higher than the market value.

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geezerette — Mon, 04 Mar 2024 19:02:17 GMT

Just not too much higher or you won't get offers.

If your agent knows what they're doing, they will know what your market will bear.

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Sassycoco — Mon, 04 Mar 2024 19:09:07 GMT

I agree with @Puppy Lips....

I would figure out a price...your willing to sell it for....

Start higher ,let realtor know ...your willing to negotiate offers close to the asking price....
Lol....I'm a hagagler 🤣

Re: real estate question

Nightowlz — Mon, 04 Mar 2024 19:10:41 GMT

That's what they do around here. It's always more than the Zestimate on Zillow.

Banks will only loan what it's appraised for unless you have collateral to cover the rest.

Re: real estate question

rockygems123 — Mon, 04 Mar 2024 19:13:31 GMT

@goldensrbest

If you believe you have an excellent realtor and trust them, then trust their pulse on the marketplace, that's their job.

Pricing outside of a range may hurt in searches. For example pricing at 849,999 will be included in a search for 850,000 max let's say, you price at 865,000 then it's not included.

Cutting the legs off a chair somewhat but if you price too high you will deflect certain potential buyers; with a lower starting price if the market is hot with low inventory as you say then you could have a bidding war.

Re: real estate question

gizmogal — Mon, 04 Mar 2024 19:14:12 GMT

One way to look at it is that your house is worth whatever someone is willing to pay for it! I'm sure there is a limit, of course, where you might price your house out of the market. But kicking the asking price up $1000 more will soon let you know if it matters. If you still get a lot of prospective buyers and counter offers, then you've priced it right. If the very active real estate market in your locale doesn't reflect real interest in your home, then you'll know you're asking too much and it's discouraging buyers. So then you lower the price.

Since you are asking your question, it would seem that you have confidence the house has great appeal. Your instincts are probably correct. Go $1000 higher than the agent recommends and see how quick buyers get active towards your house. You'll soon know if that thousand dollars matters.

Best of luck.

Re: real estate question

haddon9 — Mon, 04 Mar 2024 19:14:35 GMT

My neighbor across the street from me just sold her home for $66K (!) over the asking price. This was last month in bad weather. We had ice & snow and there was still a bidding war among four parties.

Pretty unbelievable!

Re: real estate question

Sooner — Mon, 04 Mar 2024 19:17:24 GMT

I usually like to add at least 10 percent to the agent's suggested price. However, if you want to sell quickly, market it to sell and get rid of it. You'll probably save money and worry in the long run.

It all depends on what you want/need out of the selling price.

Re: real estate question

gidgetgh — Mon, 04 Mar 2024 19:20:35 GMT

When I sold our house in the height of the housing frenzy here in Atlanta, in February, 2022, my agent priced it at a "no way am I going to get that for our house. I would faint" price. I thought there was just no way.

Our house sold in 3 days for $72,000 over the asking price. I can't believe it still.

Re: real estate question

Desertdi — Mon, 04 Mar 2024 19:26:29 GMT

You wanna hear something hysterical.....some person left a note on my front gate.....offering me $100,000......for my house in Phoenix..... (That wouldn't get you a garage with a dirt floor around here.)

Re: real estate question

CelticCrafter — Mon, 04 Mar 2024 19:38:47 GMT

I wouldn't go higher than what the agent is suggesting.

Most of them know what they are doing, some do not.

What are the comps in the area?

You also need to think about the interest rate for mortgages.

We had a neighbor list the house for $100,000 over the Zillow estimate, dropped it $10,000 within a month, then dropped it a laughable $2,000 at the 3 1/2 month mark.

He took it off the market at the 4 month mark.

Apparently no one wanted a $539,900 mortgage with an 8% interest rate and then have to do 10's of thousands of dollars worth of updating.

Re: real estate question

SaveTheTurtles — Mon, 04 Mar 2024 19:46:16 GMT

I think it also depends on the condition of the house and whether or not updates need to be made. How old is the roof, furnace, a/c etc. But, as others have said you can always drop the price but you can't go up.

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Love to Run — Mon, 04 Mar 2024 20:03:06 GMT

I would trust my realtor's judgement. The market will determine the actual selling price no matter how high you list it. You only run the risk of eliminating potential buyers who are searching based on the range they have in mind. Buyers know they they will pay more than the list price in a seller's market.

Re: real estate question

LavernLuvsShoes — Mon, 04 Mar 2024 20:14:07 GMT

@gidgetgh wrote:
When I sold our house in the height of the housing frenzy here in Atlanta, in February, 2022...

Our house sold in 3 days for $72,000 over the asking price. I can't believe it still.

WOW - Congrats to you!

Re: real estate question

tansy — Mon, 04 Mar 2024 20:20:46 GMT

Maybe get another realtor to price the house, @goldensrbest, and then decide.

I used a realtor that listed and sold many properties in my neighborhood. She had a reputation to protect and I trusted her. Our house went, into a bidding war, with an acceleration clause, and we did well. It sold within four days.

Re: real estate question

Lucky Charm — Mon, 04 Mar 2024 20:30:44 GMT

Our realtor priced our last house so much higher than we were considering, (during this market boom), we still went higher and got what we were asking.

Re: real estate question

KittySoftPaws — Mon, 04 Mar 2024 20:45:58 GMT

@goldensrbest There are so many factors that go into selling a home and getting the most you can out of it. First is the market. Right now interest rates are higher. Next, what is the condition of the home? It will need an insepction and you may end up having to foot the bill to "fix" some minor issues before the sale.

Of course location is a biggie, if you are in a hot market area, anything goes. It's so very important to get a good Realtor as well. Sometimes some Realtors will set a home price too low just so they can make a quick sale at your expense.They will also take into account "comps" or homes in a certain radius of your's to get an average price of what you can expect to get.

It's tricky because if you set it too high and it sits too long, then you have to reduce the price and this puts doubt into the buyer's mind that there may be something wrong with it for that reason. Get your comps, take all into consideration and then with the help of a good and reputable Realtor, set the price to sell and to get a good and fair price for you.

Re: real estate question

jlkz — Mon, 04 Mar 2024 21:06:13 GMT

When dealing with your broker about the comparables selected for comparison purposes, make certain you are comparing apples to apples.

When selling our mountain vacation home, DH noticed that quite a few of the homes had created bedrooms in the basement. We had to master suites, one on the first floor and one on the second. The other bedrooms were also on the second floor. So, all bedrooms were above ground vs. mixed above and basement. It makes a difference when establishing a selling price !

We prevailed with the pricing we felt was more fair. The house sold very close to asking in 10 days three years ago.