We all either have been in the position where we have received an offer on a home that was significantly less than the asking price of our house or fear that someone will make a low offer. But, what do you do if you receive one?
Well, I know the first instincts are to reject the offer. But, I tell my clients it is a great starting point. In this economic times more buyers are trying to find out how much someone needs to sell their house instead of presenting a low; but fair initial offer.
Unfortunately, we all tend not to hear the rest of a offer provisions and conditions once we hear the price...The whole package needs to be considered when looking at an offer. I advise my clients that they need to look at the whole deal. When does the buyer want to close? Are they asking for any money toward closing costs? What type of financing are they trying to get? What monetary out are they asking for on a home inspection? These all play a vital role in the complete offer.
No matter how ridiculous the offer I always advise my sellers to counter offer the buyer. Even if it not an adjustment on the price but some other part of the offer they want negotiated. I always run an updated CMA (market anayisis) for my seller when an offer comes in ( I do it for them every month as a policy) so I can shopw them what the buyer's agent is showing them in regards to the comparable properties out there. This helps in countering back with an offer and understanding where everyone is in the price.
Most importantly, I tell my seller to leave the emotions in the bedroom and come to the negotiation table with the view this is a business descsion... We all tend to let our emotions step in when selling a house because of the sentimental value we have in the home. But, the value you may perceive on a home is not the same as what the buyer may perceive on a home.
When you counter a low ball negotiation you also open the door for dialogue and to see if the buyer is someone serious about purchasing your home or just trying to see if he can get a home for significantly below market value. If you do not counter you will never know if it may lead to a sale......
Dave diCecco
Realtor/Broker
www.davedicecco.com
Wednesday, July 21, 2010
Tuesday, July 20, 2010
Should I Reduce My Asking Price?
This is a question that just about every seller faces at some point during the time their home is on the market for sale. Should I reduce the price?
There are some variables as to whether you should reduce the price fo your home. We are in a market right now where homes are sitting on the market longer than a few years ago...but just because it has been on the market for 30, 60, or 90 days does that mean you need to reduce the price of your home?
Consider these questions if you are thinking of reducing your price or your Realtor has recommended reducing your price.
Am i getting showings on my home? Are there people coming out to look at my home. If you are not getting many showings on your home as comparison to other homes in the neighborhood then you may need to consider lowering your price.
How is my home priced in comarison to comparable homes on the market and ones that sold in the past 90 days? If you are signifcantly higher without any justifable improvement or reason you may need to lower your price in order to fall in line with what the market is bearing at this time.
Do I need to sell Now? This is and will always be the single largest factor in an adjusted home price. Are you relocating or moving to another school district and want to ensure the kids are going to start the year in that school... Then you may want to look at your finances and decide on what would be the least amount you can accept for the home and adjust the price accordingly.
Last, is how long has your home been on the market in comparison to other homes in the neighborhood? How does it compare to homes that have sold in the past 60 to 120 days(depending on how many have sold). If you are trending toward being on the market longer than average; you may want to consider lowering your price.
Dave diCecco
Realtor/Broker
www.davdicecco.com
There are some variables as to whether you should reduce the price fo your home. We are in a market right now where homes are sitting on the market longer than a few years ago...but just because it has been on the market for 30, 60, or 90 days does that mean you need to reduce the price of your home?
Consider these questions if you are thinking of reducing your price or your Realtor has recommended reducing your price.
Am i getting showings on my home? Are there people coming out to look at my home. If you are not getting many showings on your home as comparison to other homes in the neighborhood then you may need to consider lowering your price.
How is my home priced in comarison to comparable homes on the market and ones that sold in the past 90 days? If you are signifcantly higher without any justifable improvement or reason you may need to lower your price in order to fall in line with what the market is bearing at this time.
Do I need to sell Now? This is and will always be the single largest factor in an adjusted home price. Are you relocating or moving to another school district and want to ensure the kids are going to start the year in that school... Then you may want to look at your finances and decide on what would be the least amount you can accept for the home and adjust the price accordingly.
Last, is how long has your home been on the market in comparison to other homes in the neighborhood? How does it compare to homes that have sold in the past 60 to 120 days(depending on how many have sold). If you are trending toward being on the market longer than average; you may want to consider lowering your price.
Dave diCecco
Realtor/Broker
www.davdicecco.com
Monday, July 19, 2010
Charlotte Foreclosures Not the Great Deals Anymore....
Everyday I am approached by someone who is looking for a great real estate deal in the Charlotte area. The unfortunate perception is that foreclosures and bank owned properties can be had for pennies on the dollar. Everyone wants that great deal.
Well, maybe because there are so few buyers available for properties out there that it may be the case as to why the difference in actual selling price between a foreclosure and non foreclosed property has diminished.
A recent article I was reading from corelogic was showing the statistics. They were quite enlightening...Eventhough, I have suspected this for awhile. The difference between a comparable home that sold in foreclosure to one that did not sell in foreclosure was.5%. That is right less than one percent.
As home prices have stabilized, and in fact, gained ground recently year over year foreclosures are no longer the great deal they once were. Banks are more conscious of the bottom line and are willing to wait it out now more than ever as they try to recoup as much money as they can. It has made for some tough negotiations.
The banks are not giving homes away just to get them off their books anymore. They would rather sit on the homes and wait it out than take a substantial loss....
All the studies show home prices starting to climb. Nationally home prices saw an increase for the fourth consecitive month in a row. A great sign that the housing market is starting to stabilize.
Banks are aware of this too and are now getting a little tougher on what they will settle for in regards to prices on a home...
Dave diCecco
Realtor/Broker
www.davedicecco.com
Well, maybe because there are so few buyers available for properties out there that it may be the case as to why the difference in actual selling price between a foreclosure and non foreclosed property has diminished.
A recent article I was reading from corelogic was showing the statistics. They were quite enlightening...Eventhough, I have suspected this for awhile. The difference between a comparable home that sold in foreclosure to one that did not sell in foreclosure was.5%. That is right less than one percent.
As home prices have stabilized, and in fact, gained ground recently year over year foreclosures are no longer the great deal they once were. Banks are more conscious of the bottom line and are willing to wait it out now more than ever as they try to recoup as much money as they can. It has made for some tough negotiations.
The banks are not giving homes away just to get them off their books anymore. They would rather sit on the homes and wait it out than take a substantial loss....
All the studies show home prices starting to climb. Nationally home prices saw an increase for the fourth consecitive month in a row. A great sign that the housing market is starting to stabilize.
Banks are aware of this too and are now getting a little tougher on what they will settle for in regards to prices on a home...
Dave diCecco
Realtor/Broker
www.davedicecco.com
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