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NBR: Putting our house on the market- pricing question
Emer
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We are putting our house on the market and can't agree on the price. Our Realtor is suggesting $259,900 and I think $249,000. My only problem with the higher price is cutting out potential buyers who are looking at houses under $250k. Is that a valid concern? I don't want to price the house too low, but I also want it to sell quickly.
Comps in the neighborhood justify the higher price, btw.
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Re: NBR: Putting our house on the market- pricing question
Hmm...How motivated are you to sell? On the up-side I would think putting it at the lower asking price will get you an offer fairly quickly. But by asking 10K less than what you are saying is Fair Market Value - you may lose a lot of equity that you have built into the house. (Which, let's face it - that's the main perk of home ownership -- equity!) Have you calculated the 6% realtor commissions as well as other likely scenarios - like the buyers asking you to pay their closing costs and owners title policy? (I would estimate about 4-5% for closing costs) - so that is potentially $25K (or more) that you are paying in fees/commissions.
If you need to sell NOW and don't care about making a profit or just want to break even or cut your losses - then list it under market value. But if you are in no true hurry - then list it at the 259,9 and if you don't get any bites in say 30-60 days, then lower the price. That would be my advice.
Speaking from a buyer's perspective here
We're in the process of purchasing our first home. We found it the day it went on the market and it was priced about $10k below the CAD value. We put an offer in on it that night and the next day it had three offers...so, if you're motivated to sell fast, pricing it under might be beneficial for you. If you don't mind waiting it out a little while, I'd say go with the higher price.
I think at a price under the 250k mark, you would get more traffic and get an offer/s sooner BUT I will tell you that all of the offers that I've been seeing lately have been extreemly low and on top of that, asking for seller paid closing costs to the buyer, 10 day option period, etc. They have been less willing to negociate or come close to list price and will run away if they smell a mulitple offer situation.
You could test the market for the first week/wknd at 259k and see how much traffic you get. If you don't get any showings or only 1-2, then I would say you're priced too high b/c you won't be getting the right number of showings to get you an offer. You can always reduce the price by 5-10k in a wk or 2 depending on how your first 1-2 wks go. I ususally list my listings on Fridays (early in the AM) and make price changes on Fridays so that it shows up on the HOT SHEET all day that day. Most buyer agents are probably pulling properties to show their clients for the weekend on Fridays so this just gets you a little more of a high profile that day.
I'm not a realtor, but I am in the market for a new house. If I looked at your house, priced at 259k, and I wanted to make an offer, I'd probably only offer 247k(ish) at the most. But if your house was listed at 249k, and I wanted to make an offer, I'd probably only offer like $235ish. If I were you, I'd take into consideration that difference, and how much you want/need to make on the sale.
Another way to look at it: I look at a range of listings within $25k over my max price, both what my realtor sends me and online. I'm not going out to see the houses at the top of the range in person (unless the realtor thinks they're overpriced), but I'm still looking at them. So basically, if my max offer could be $250, I'd still look at houses in the $260 range and see yours.
Of course, I don't really know about traffic, but if I were you, I'd list it at the price your realtor recommends and see how it goes. Good luck!
This.