Asking 850,000 for my house. Have an offer of 775,000. Average of comps is 830,000. Take it or hold out?

Question

This is in east coast beach area accessible to Philly, DC and Baltimore. Is this market dead? Very few sales in the last 6 months so comps are hard to come by. How do appraisers handle this? Should I get some appraisals?

Answer 1

Not sure if this would help. Usually, a housing market correction last for years. It is unlikely things will brighten up in a few months, afterall, this bubble took 5 years for form.

It might be better to give some discount so you unload the house quickly and can use the gain of the home to make money elsewhere quickly. At the same time, you will save money by not paying mortgage for the next 5 months.

For example, if mortgage is $2500/mo. and you have $300,000 gain sitting in the house, by selling it now rather than 5 months later will save you $12500. It will also earn you as much as $7000 from interests (Assuming CD are paying 5.5% or higher).

Total financial benefit for selling early would be $20,000. I would give buyer some discount just because of that.

Finally, keeping a house in selling condition is a lot of work. If your realtor does staging, it costs extra to rent furnitures. If you are living in the unit, it takes extra effort to keep it clean. So, sell it fast!


http://money.cnn.com/2006/09/08/real_estate/caught_in_the_bubble/index.htm?postversion=2006090814
http://money.cnn.com/2006/09/05/real_estate/Ofheo_home_prices/index.htm?postversion=2006090514

Answer 2

Counter it, rule of thumb- first offer is usually the best offer.. If you do an appraisal well what do you have to loose-- 300-400$. Since the market is slow as it is everyplace I,d certainly confer with your agent and have him run a net sheet to really see how much your going to walk with. At least you will have an informed decision. also you might want to ask him/her how long the other comp houses were on the market. This may give you a better understanding of how long it may take to sell yours.

Answer 3

WASHINGTON, D.C. - Home sales during the rest of the year will be lower than earlier projections as the market works its way through an inventory and price imbalance, according to the National Association of Realtors®.David Lereah, NAR’s chief economist, said the most obvious effect in the near term will be with home prices. “A year ago we had record home sales and tight supply with buyers bidding over the asking price,” he said. “This year sales are slowing, homes are plentiful and sellers are negotiating. Under these conditions, we’ll probably see prices dip temporarily below year-ago levels as the market works through a build up in housing inventory.”

Answer 4

It's a buyers market pretty much in the whole country. Are the few sales because there are few buyers or because area normally does not turn around much. If $775,000.00 is a figure you can live with, you might want to take the money and run.

Answer 5

It takes a long time to find a buyer for a home of that value. If there are comps that hold to your price you may want to conter a higher price. Keep in mind that they are only offering about 9% less than you are asking. If you need to sell I would take it and be glad you are out.

http://www.realestateagentlive.com/

Answer 6

Depends upon your market, and how persuasive your listing agent is and how persuasive the buyer's agent is. But the fact that there aren't many sales tells me a lot. What's the inventory? How many properties like yours Active on MLS?

What is your Plan B if it doesn't sell? That's something else to consider. Are there some background issues that constrain you?

Since your listing agent hasn't gone over these issues, I am emphatically unimpressed by their ability. If it doesn't sell, find someone else when their contract expires.

Answer 7

Sadly, you might have to take it bc right now it's a buyers market, meaning you are competing amongst SO many people whose houses are on the market. It is quite the price difference, however. (BTW, 830,000 doesn't sound bad) (Do, however, have your Realtor do a price comparison with the buyers)

Answer 8

The market has slowed some what. Try counter offer of $825.000 and set your final price at $800.00. Appraisals can work for or against you. If you do get it appraised, if it's less than your asking price, stay at $800.00 as final. If more, than stay firm.

Answer 9

TAKE IT. The market is sour and you got 91% of your asking price. Selling prices are down 15% from their peak last year in a lot of places.

Answer 10

Well, if sales are flat, you already have your answer, don't you? You may be jumping off just before the floor collapses. Good luck!