Selling a home and pricing.

[RiverRat1]

Think of this.

Most homes sell well over ask. With multiple offers of all types. List too high and a lot of buyers think “man. It’s already high. It’s gonna go way over. I’m out”.

My mom owns a real estate company in Leander so I get to see it first hand. Listing at a reasonable price gets better offers. If you go too high and drop the price it kind of freaks buyers out. There’s a happy medium and this is where a very good realtor is worth the money. They know the market well. They know how buyers respond. They see the market changing day to day. They can give advice. Totally up to the seller whether they listen or not.

Thanks, this makes sense and maybe lots of cents

[Tejas Wildlife]

Well....

Who has $87.5k lying around these days?

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Probably Hunter Biden........unless he has visited his dealer recently!

[whitetailtrail]

Replace gun with truck or whatever other big ticket item you can think of.
I can't think of many things that people don't take their time selling except for homes.

Maybe I'm the only one that thinks the bigger ticket items should take more time to sell.

He did the analysis. My question is if every home took an offer after 1-2 days did any of them get the most for their home? Do you list anything for sale and accept top bid after just 24 hours?

I'm just asking questions because I simply can't wrap my head around it. But maybe all current buyers have instant access in this fast paced market and most bids do happen in 1-2 days. And after that they would just trickle in at a fraction of the pace.

To give some context, maybe you’re underestimating just how crazy it is.

We put an offer on a home in our neighborhood. It hit the market noon Wednesday, we saw it 10 am Thursday and got the offer in same day 25K over asking. They accepted an offer Thursday night/Friday morning at 30K over asking. 10 day close, waived inspection, waived appraisal contingency. They had offers at 60K over but wanted the quick close and basically a guaranteed sale with no contingencies since they were out of the house. They also received 24 offers in the 36 hr period.

So many variables for a seller - already out of the house, found a new one and need cash for down payment, don’t want to deal with fixing issues or risk not appraising and a seller can pick an offer that checks the most criteria so it’s not so straight forward.


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[DNTRanch]

What is?



And this thread is NOT about using a realtor or not. I am using one because it's 100% worth it for this home sale.

But back on track. Lets say you have ten compound bows for sale. You put the 1st one up for sale for $1k and it sells in 10 minutes and you have 5 others that same day asking if they can buy it. Do you sell the next one for $1k also? I'd think most would raise the price until it takes a little bit to sell.

Am I over thinking this? I guess I just don't understand why people buy a gun for $1,500 and when they try to sell it they try to get $1,500 or die holding it refusing to take $1,400 because they don't want to "lose" money. But they list a house and get 10 offers on day one but don't take their time trying to get top dollar... Which could be a ton of money compared to that $100 difference on the gun sale.

Just referring to the Housing Market... Nothing else

[bbqfan5909]

This right here, made our money on the first couple homes. My wife and I are very cheap, saving like heck and waiting for a bust to capitalize on the next big purchase.

Hardly any 1st time home buyers and some 2nd time home buyers. That 3rd home is where you start to be able to put down a good amount of money from what I’ve seen.


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[BertramBass]

Replace gun with truck or whatever other big ticket item you can think of.
I can't think of many things that people don't take their time selling except for homes.

Maybe I'm the only one that thinks the bigger ticket items should take more time to sell.

He did the analysis. My question is if every home took an offer after 1-2 days did any of them get the most for their home? Do you list anything for sale and accept top bid after just 24 hours?

I'm just asking questions because I simply can't wrap my head around it. But maybe all current buyers have instant access in this fast paced market and most bids do happen in 1-2 days. And after that they would just trickle in at a fraction of the pace.

IMO no other big ticket item compares to a house. Sure you could hold out for every dollar, but most sellers have a ball park figure they can be happy with. I've turned down higher offers due to circumstances or conditions in the offer. Most buyers do have instant access if they have a realtor. They receive daily emails on any listing changes automatically generated and sent to them. Buyers just kicking tires can follow Realtor.com/ Zillow, etc. but they are not usually up to date/current. When the listing is new and on the front page of the MLS it definitely generates more views that ultimately can turn into offers. Cash deals can go quickly, but if the house is going to be financed, you want to get it under contract to get the ball rolling. Could be 45 to 60 days to see any $$$.

[MBV77]

Who has $87.5k lying around these days?

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Every person coming from California that sold their 1,700 sq. ft house there for 1.4 million.

[Smith]

I think a lot of people are listing their houses for higher prices than what they think it’s worth in the last year or so. Like others have said, there is a price point for everything that people just won’t pay though. Ideally you get as close to that as can. Or if you need to move it faster you price it more competitively to comps. If you have the time, list it as high as you want. Everybody’s situation is different with how much time they have to sell. The one other thing I hear about is listing it too high, holding out for too long at that price and making people nervous about why it’s been on the market so long in this climate.

[gb22250]

I believe your line of thinking is correct during normal times. Wait and see what your best offer is.

Right now people are already asking, and getting, much more than they should for their homes. Taking one of the first few offers makes sense due to the already inflated asking prices. It’s sell high, fast and take your profits.

[Johnny Dangerr]

Our last house got 5 offers in a couple of days. We took it off the market for 6 weeks and relisted it at a high number and it sold in about a week...

[Patton]

In the market I work, list prices have gone up 30 to 40% compared YoY. With the increase in list prices, we have seen the delta between list price and sales price shrink with homes now selling for 100 to 105% over (generally) as opposed to the 30-40% over asking price that we saw earlier this year. There are enough relative comps from this year to now justify and support the increase in list prices. If you are seeing homes still priced at last year‘s values, that’s a fault of the agent.

[Bill]

We retired in rural Montana and just heard of a house selling for $200k over asking price.

Here’s what I learned selling our CA house in 2019.

The listing Realtor gets between 1.5% and 2.5% if the total commission is 6%. If he/she can sell a home for $25k more and it takes longer, he made an additional $375 to $625. He wants to close the deal asap.

Second, most buyers are watching the internet real estate web sites multiple times daily for specific neighborhoods and a price range. If you list too high, a potential buyer may not see it. Then let the buyer’s offers turn it into a “bidding war”. That’s how to find the true value-it’s what somebody will pay. Tell the Realtor you’ll accept offers for 7 or 10 days, and he/she will tell buyer’s agents if they’re the high bid.

The contingencies with the offer factor-in on which to take. All cash buyer, no inspections, etc. can make a lower offer more attractive.


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[Txhunter3000]

you don't really need a realtor these days. Just let the word out to neighbors that you're thinking about selling and watch the offers roll in.

[Bill]

you don't really need a realtor these days. Just let the word out to neighbors that you're thinking about selling and watch the offers roll in.

If you don’t want the MLS listing to get you broad exposure on Zillow, Trulia, Realtor.com etc. to people your neighbors don’t know, donn’t want a Realtor bringing you pre-qualified buyers (they don’t work fir free), have the knowledge of the applicable laws and know how to guide the deal through to closure with a potentially difficult buyer- go right ahead.


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[DFWPI]

We retired in rural Montana and just heard of a house selling for $200k over asking price.

Here’s what I learned selling our CA house in 2019.

The listing Realtor gets between 1.5% and 2.5% if the total commission is 6%. If he/she can sell a home for $25k more and it takes longer, he made an additional $375 to $625. He wants to close the deal asap.

Second, most buyers are watching the internet real estate web sites multiple times daily for specific neighborhoods and a price range. If you list too high, a potential buyer may not see it. Then let the buyer’s offers turn it into a “bidding war”. That’s how to find the true value-it’s what somebody will pay. Tell the Realtor you’ll accept offers for 7 or 10 days, and he/she will tell buyer’s agents if they’re the high bid.

The contingencies with the offer factor-in on which to take. All cash buyer, no inspections, etc. can make a lower offer more attractive.


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A lot of flaw in your comments for the State of Texas. Each State have different laws, regulations and so forth, but heck, you probably already know that if you lived in California.

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