Need Your Opinon Of Asking Price
I just bought a foreclosure for $26,500. I've repainted all of the interior, new carpet throughout. I didn't have to do much structurally, but it's still just an old house.
Realtor ran some comps for me with an average about $56,000. (It feels to me like those houses must be nicer than mine, but she's the realtor and those were the numbers she gave me.)
Real estate has just started picking up in my town, houses are selling pretty fast if they are priced right. There are many for sale, but not necessarily in this price range. I don't want to overprice myself, but also want to realize a nice profit.
After all the work is done I should only have about $2,000-$2,500 in repairs. I want to sell quick so I can turn around and use the profit as money down on a different property.
WHAT would you use as a starting price on this property and where would you sell at???
I'm just a newbie and not sure where to start or end this deal.
Thanks for your help!
Kim
Hi, and congrats on your new house. A couple of things come to mind here... First thing, drop that "It's just an old house" thing.
In YOUR eyes, it's an old house. In someone else's eyes, it could be a dream home, and you have to treat it as such. The other thing is, I would ask a realtor who knows the area what they think they can sell it for, and list it at that. If it doesn't sell pretty quickly, then you can look at other options, maybe carry the note yourself, lease option, something along those lines.
I am very careful about setting an asking price or rather sales price. It is my experience that you only have one shot at a customer. If the property is over priced you will run off your buyers. Most retail buyers will not make offer on an over priced property. When a property is on the market too long it becomes stale and harder and harder to sale. I don't negotiate. The price is the price unless a buyer has a very compelling reason to motivate me to reduce it. (example, close tomorow) Study the comps and market for your area and don't depend on realtors unless they have a proven track record. For that matter I don't depend on realtors to even show my properties. I will pay a very good commision to a realtor who procures a buyer but I want to make the sale. Sales is a skill and I can't afford to waste my traffic with someone who may or may not know what they are doing.[ Edited by pspiers on Date 04/23/2004 ]
You should ask the realtor for the comps she used and see if you agree with them. Look at the neighborhood, run comps for yourself, etc.
I agree to set the price low and take a quick sale and move onto the next project. If a property is priced low you will likely get an offer for MORE than your asking price! Why not try to set it at $45k?
I agree with the guys above - although the realtor is giving you numbers, get some of your own and compare - study the market and the neighborhood to get a better idea of what similar houses sell /have sold at there. It will only be to your benefit in the future anyway. Don't let the realtor "push" you into setting a price that you don't agree with. BUT also keep her suggestions in mind as well as you make your decision. Good luck
I have a 3 bedroom ranch that just went under agreement for asking price of 129k
(selling it with local realtor)
Before buying the place 2 weeks ago I had this realtor go through it and do a CMA for me so that she could confirm my suspected value of the place ( Never bought in this town before).
She came up with 118k - 122k for an asking price in as is condition.
I listed it with her for 129k.
The first day on the market someone offered asking price contingent upon me doing about $1200 worth of work. (sanding flrs., new shower head, GFI in bath ect.)
Up to this point all I had into it was a good cleaning.
My point is, it is easier to lower the price than raise it.
I would go with realtors numbers or higher and see how it goes.
Best of Luck
JohnNH
Do not trust that the aget has told you the true market value of the property. Often they will tell you a high number to get the listing. Make them show you the comps. If the number is right list at at the market.
Listing to high can eliminate buyers who are looking at a list of houses under X of $. Even 1 dollor over will keep your property of of the list.
Don't list to low this will hurt you. Instead offer a bouns to the agent who brings in an offer that is closed within X number of days. Then lower the bouns every two weeks. Have your agent add comments that the buyer is will willing to look at all offers.
Hold an agent open house have flyers explaining the bouns and have a drawing for something nice. Every agent that comes can drop a card in the hat and at a set time draw one out they get the prize. BTW your agent holds the agent open house you sould not be around. You can come by and draw the card but that is it.