[soccermama]

Just found out that some folks across the street from us have put their house on the market and are selling it for a lot less than we intend on selling ours for. I grabbed the info sheet from their yard the other night and noticed these things:

1) They have a smaller yard then ours
2) They have no garage, we do
3) They have no front porch, we do
4) They have 1008 sq ft, we have 1100 sq ft
5) Their kitchen is a tad smaller than ours
6) Close to the same decor and colors
7) Same # of beds and 1 bath
8) They have a new cedar fence

We bought our house in the mid $140's nearly 5 years ago and figured that we couldn't sell it for any less than $151,900 if we want to break even and be able to cover agent costs. What would be your recommendation on the starting price? I was thinking $159K - H is thinking $157K. Should we go higher or are we on target?

Our house has hardwood throughout, newer kitchen, stainless steel applicance minus the stove, brand new ceramic floors in the bathroom, new tiles in front of the fireplace, large closets (one is a walk-in), neutral paint, nice landscaping, nice green yard, and fully fenced.

Also, the first open house that they have, I will certainly be by to check out other areas of the house that weren't pictured on the flyer.

 

[wildmonkeys]

I would see how much traffic they get at that price - if they get an offer quickly...

 

[polyhymnia]

Quote:

Originally Posted by soccermama We bought our house in the mid $140's nearly 5 years ago and figured that we couldn't sell it for any less than $151,900 if we want to break even and be able to cover agent costs. What would be your recommendation on the starting price? I was thinking $159K - H is thinking $157K. Should we go higher or are we on target?

How do you need to sell for $152k to break even if you bought 5 years ago for less than that??

Unfortunately, I don't think you can take that into consideration. I think you need to look at comps in your area (and it sounds like the neighbor's house is a reasonable comp if you take into account the garage issue) to see what a reasonable listing price is.

 

[soccermama]

Quote:

Originally Posted by polyhymnia How do you need to sell for $152k to break even if you bought 5 years ago for less than that?? Unfortunately, I don't think you can take that into consideration. I think you need to look at comps in your area (and it sounds like the neighbor's house is a reasonable comp if you take into account the garage issue) to see what a reasonable listing price is.

Because you add 6% to the price (3% for buying agent and 3% for selling agent) - 6% of $143K = $8580 which then equals = $151,580. I don't think it's so much to break even as it is to sell without losing any money. We don't even know at this point how much equity we've built up on this. Maybe we could sell it for a little less and still make some money - we're just going by what we know right now.

 

[SuzyLee]

I think of the things you listed the follow are relevant:

1. Garage. I am pulling anumber out of my butt but I would think this would be worth at least 2000$ and up to maybe 6000$ more, depending on your real estate market.

2. Cedar fence- only matters if your yard isn't fenced at all or is in really bad shape

3. Kitchen size- depends more on the layout and look of the kitchen- which your new appliances will also help you with. Worth between 1000-4000 (again total guess on those prices).

The other things, I think are not big enough deals to drastically affect how much someone would pay for your house. Heck a smaller yard might be a plus for some buyers.

So as long as you arne't more than 3 to 10 thousand more than your neighbors I would think you would be ok. What is their list price?

 

[mightymoo]

Quote:

Originally Posted by polyhymnia How do you need to sell for $152k to break even if you bought 5 years ago for less than that?? Unfortunately, I don't think you can take that into consideration. I think you need to look at comps in your area (and it sounds like the neighbor's house is a reasonable comp if you take into account the garage issue) to see what a reasonable listing price is.

How much you want to sell it for is irrelevant. I agree, comps are what is most important. What does your agent say? You are paying them money for a reason. They should have an excellent idea about what you should put your house on the market for and should be recommending you - they know the area they should be able to justify their price with comps. If they aren't, find a new agent.

Be careful of falling into the rationalization trap - its very easy as a homeowner to rationalize to yourself why your house is worth more. If you price your house too high it isn't going to sell and can hurt your chances of selling at a lower price too. If you want to ask more for your house than the competition, you need to be at a point where buyers walk in and are so impressed with how much better your house looks than the other that they feel its worth the extra price. The neighbors are pricing their house well to sell quickly. The way you sell your house quickly is to be the absolute best house for that price, whether you do that by spiffing things up, or by lowering the price that's what you need to do to sell. If you are just figuring you will only sell if you get your price, then put it on at $157K and stay firm. If you have to sell however, and quickly, give up your ideas about getting your money back - no one is getting their money back in this market, and if you go in thinking you can't get less than a certain amount, rather than looking objectively at what your house is worth, that's a sure way to end up getting less.

 

[soccermama]

Quote:

Originally Posted by SuzyLee I think of the things you listed the follow are relevant: 1. Garage. I am pulling anumber out of my butt but I would think this would be worth at least 2000$ and up to maybe 6000$ more, depending on your real estate market. 2. Cedar fence- only matters if your yard isn't fenced at all or is in really bad shape 3. Kitchen size- depends more on the layout and look of the kitchen- which your new appliances will also help you with. Worth between 1000-4000 (again total guess on those prices). The other things, I think are not big enough deals to drastically affect how much someone would pay for your house. Heck a smaller yard might be a plus for some buyers. So as long as you arne't more than 3 to 10 thousand more than your neighbors I would think you would be ok. What is their list price?

Their list price is $150K.

 

[marimara]

You have to look at what houses sold for in your area with similar features. It's impossible for any of us to tell you what to list your house for. Do you have a real estate agent? If not, I suggest you get one. Also, you never know how much money your neighbor put down on their house or what they paid for it.

 

[soccermama]

Quote:

Originally Posted by marimara You have to look at what houses sold for in your area with similar features. It's impossible for any of us to tell you what to list your house for. Do you have a real estate agent? If not, I suggest you get one. Also, you never know how much money your neighbor put down on their house or what they paid for it.

We will have an agent shortly - I'm just getting things ready before we meet with her. Also, I do know what our neighbor paid for their house. There's an assessor's website that you can go on in our city that shows how much each person paid for their house on our street.

And no, I have no clue how much they put down on it, but I do know that they are only sellling it for $2K more than what they bought it for. So, yes...they are definitely trying to sell it quickly and are not concerned with making a profit!

 

[polyhymnia]

Quote:

Originally Posted by soccermama Because you add 6% to the price (3% for buying agent and 3% for selling agent) - 6% of $143K = $8580 which then equals = $151,580. I don't think it's so much to break even as it is to sell without losing any money. We don't even know at this point how much equity we've built up on this. Maybe we could sell it for a little less and still make some money - we're just going by what we know right now.

OH! I just realized that you meant make a profit over what you paid for it originally, not what you still owe on it. Duh. Sorry!

Good luck.

 

[SleeplessMommy]

Real estate is local. Interview 3 good local agents, ask for honest price advice and set the price based on that. If you overprice for today's market, the house will be on the market a long time - not what you want. In today's market, if you can walk away without a short sale you are doing great.

Forget profits.

 

[soccermama]

Quote:

Originally Posted by polyhymnia OH! I just realized that you meant make a profit over what you paid for it originally, not what you still owe on it. Duh. Sorry! Good luck.

Teehee.

No problem!!

 

[psyche]

Quote:

Originally Posted by soccermama Just found out that some folks across the street from us have put their house on the market and are selling it for a lot less than we intend on selling ours for.

A slight vocabulary adjustment might be in order here: They are asking less than you are intending to ask. What either of you will actually sell (or not sell) the houses for depends on the market and the buyer. "Profit" is a squishy concept in real estate these days and has no bearing on market forces. For example, our ex-neighbors just sold their house for $70,000 less than they paid five years ago while friends of ours in CA have houses that are worth hundreds of thousands of dollars less than a few years ago.

 

[Magpie1972]

Price per square foot... you can list for $163K and be competitive.

 

[HeatherAtHome]

I agree that it's hard for us to set a price without knowing what your local market is like. However, I am looking for a house right now and based on the list of features you gave and other info, I'd say that the price difference between your house and your neighbours wouldn't be a deal breaker for me. It would come down to which has a better feel, layout, which one felt like home etc.

And like a PP mentioned, it's your "asking price", your starting point. That doesn't mean it has to sell at that price. Could be more or less.

 

[lilyka]

I would get an appraisal before you do anything. I bought my house 8 years ago. have redone the landscaping, updated everything on the main floor and second floor, finished the attic for a 4th bedroom and added 50% more space (500sq ft). I had an appraisal a few weeks ago. We paid $115k for it, I owe $103. i needed it to appraise for $130 to refinance (I am not trying to lower the payment just get my xh name off the loan and deed). it appraised for $101k. less than I owe after 8 freaking years!!! People are generally getting just under appraisal around here. So hopefully things will go better for you but your neighbors numbers may be based on something more than what they feel it is worth or what they think they should be getting for it.

oh and if you don't want to get an appraisal just find out what *very* similar house in your neighbor have sold for in the last six month. thats what killed me is comps. comps from the pit of hell apparently.

forget profit. I will be lucky to get out of this without still owing on the freaking loan.

 

[Mommy&Will]

Your agent can pull comps for your area. Houses that are comparable to your house that has sold in the last 12 months. Of course, in this market that really is just a jumping off point as a lot has happened to the market in 12 months.

I would not spend money on an appraisal right now when you can get comps for free.

 

[lilyka]

true, in the end the comps are what really matter in an apraisal anyway.

 

[elsie]

If they are listing at $150K and you have the garage, you can easily list for $160K, maybe $165K to give yourself wiggle room.

 

[1growingsprout]

I dont know about your area but I would not consider a home with out a garage. Do they have a garage area and its converted into living space? Do they have a carport instead? Or do they just not have garage space at all?

Really asking price is just that 'asking' the only number that matters is the final selling price.