Brought to you by Scott P. Rogers, Funkhouser Real Estate Group, 540-578-0102, scott@HarrisonburgHousingToday.com
Brought to you by Scott P. Rogers, Funkhouser Real Estate Group, 540-578-0102, scott@HarrisonburgHousingToday.com
Tuesday, May 15, 2012
Let's suppose you have a house listed for sale for $300K. But keep in mind that you just lowered it to $300K from it's previous price of $309K.
How would you respond to an offer of $270K?
You probably consider $270K to be way too low of an offer, after all you just reduced you price from $309K. These ridiculous buyers are offering you $39K less than your asking price last week. Certainly, you should be able to sell for around $295K, right?
Well, maybe not. In the last 365 days, properties in Harrisonburg and Rockingham County sold for an average of 95% of their last list price. That means that if $300K is a fair asking price, you should probably expect to sell for around $285K -- if you hit that 95% average.
Then, all of a sudden, maybe the $270K offer on a $300K list price isn't too low at all. If you met in the middle, after all, you'd be right at that 95% mark.
So....let's make it really hurt....how would you respond to an offer of $250K??
The same logic above applies here -- if your house is an average performer, you'll end up selling for $285K. And the $250K again probably seems waaaaay too low.
But what if your house still isn't listed at a fair price? If nobody comes to view it over the next month, it may still be overpriced. Then, perhaps you'll find yourself lowering the list price to $290K. And then, of course, you might sell for that 95% average and end up at $275,500.
So.....if you're listed at $300K and you might (a month+ from now) end up at $275K....perhaps you shouldn't turn up your nose at that $250K offer. See how high they are willing to go. . If you can get them up to $275K, you might want to consider taking it (bird in hand! bird in hand!) -- and if their super low offer of $250K was just to try to get you down to $280K or $285K, all the better!
As a seller, don't be discouraged about what you view as a low offer -- after all, it's an indication that somebody really wants to buy your house. Don't let those buyers slip away --- negotiate creatively and try to get to a reasonable and mutually acceptable price.
How would you respond to an offer of $270K?
You probably consider $270K to be way too low of an offer, after all you just reduced you price from $309K. These ridiculous buyers are offering you $39K less than your asking price last week. Certainly, you should be able to sell for around $295K, right?
Well, maybe not. In the last 365 days, properties in Harrisonburg and Rockingham County sold for an average of 95% of their last list price. That means that if $300K is a fair asking price, you should probably expect to sell for around $285K -- if you hit that 95% average.
Then, all of a sudden, maybe the $270K offer on a $300K list price isn't too low at all. If you met in the middle, after all, you'd be right at that 95% mark.
So....let's make it really hurt....how would you respond to an offer of $250K??
The same logic above applies here -- if your house is an average performer, you'll end up selling for $285K. And the $250K again probably seems waaaaay too low.
But what if your house still isn't listed at a fair price? If nobody comes to view it over the next month, it may still be overpriced. Then, perhaps you'll find yourself lowering the list price to $290K. And then, of course, you might sell for that 95% average and end up at $275,500.
So.....if you're listed at $300K and you might (a month+ from now) end up at $275K....perhaps you shouldn't turn up your nose at that $250K offer. See how high they are willing to go. . If you can get them up to $275K, you might want to consider taking it (bird in hand! bird in hand!) -- and if their super low offer of $250K was just to try to get you down to $280K or $285K, all the better!
As a seller, don't be discouraged about what you view as a low offer -- after all, it's an indication that somebody really wants to buy your house. Don't let those buyers slip away --- negotiate creatively and try to get to a reasonable and mutually acceptable price.
