Post by bullygirl979 on Apr 28, 2016 8:16:54 GMT -5
I'll try and make this short.
We are going to look at house for a second time today. My REA is also the listing REA. House has sat on the market 2 weeks. 20 showings, zero offers. It has good bones, but needs a lot of updating (kitchen, and all baths need work). REA wants sellers to drop the price 10k to get interest. Sellers haven't agreed yet, however they are somewhat motivated to sell as it was their father's house and he passed away so it's sitting empty.
I don't want to ask my REA about comps as he is also the listing agent. The house next door sold last year for $95 a square foot. This house is currently listed at $106 a square foot. So, I know from a square foot perspective, this house is overpriced. However, the house that sold last year is on 5 acres, whereas this house is on 1.5 acres.
So, my question is, how much do I take the land amount in to a comp price? It doesn't seem logical to go apples to apples on just square footage pricing.
Are there any vacant lots close by so you can determine the cost per acre?
There are 4 lots for sale within a 2 mile radius. However, they range wildly from $16k-75k an acre. And they've all been sitting on the market at least 3 months.
Post by Balki.Bartokomous on Apr 28, 2016 8:31:10 GMT -5
I don't put too much stock in the price per sq ft when determining what a place is valued at and I don't think it's as simple as subtracting out land value based on an empty lot.
I'd pull up zillow and look for your own comps that way with a similar lot size. If you are serious about the house, I'd find a different REA to rep you and pull comps that way.
The tax assessor values here don't mean much, but maybe that would be a good start? Just to know the assessor values the next door land at $100k and the house you are looking at is $50k could help give you an idea?
Other than that, I'd search listings for houses on 1-2 acres and see if that gives you any guidance. I will say, our house is hard to comp because of the land and no similar houses (nearby) sell (houses in nearby neighborhoods sell but they are on smaller lots, the ones on my road with similar acreage rarely sell). When we've had appraisals they seem to pick houses to comp that are like 5-10 miles away-- Ones that I wouldn't consider as actual comps.
In my area, houses have easily gone up 10% in the past year, so $95 last year and $106 this year seems like not overpriced. It sounds like the land isn't a huge deal in your area if you have vacant lots that aren't selling, so I'd only consider the additional acreage minimally (maybe $10-$15k?)
If you aren't comfortable asking for comps, you need a new REA.
Every area/region is different so any of these are variables. Can you find any houses that have a similar size, lot within the area? Zillow, redfin, realtor.com.
I'd probably offer $15-17k below current list and open negotiations. (Says the person that is dealing with her father-in-law's estate house that has been vacant for over a year and is under contract to sell it.)
I agree that price per square foot isn't a good comparison. I have had really good luck with the Redfin app, we just bought a house (set to close in mid-May) and Redfin gives a "Redfin Estimate" for each property listed. Our appraisal was within $400 of the Redfin estimate, so it was right on the money.
In my area, houses have easily gone up 10% in the past year, so $95 last year and $106 this year seems like not overpriced. It sounds like the land isn't a huge deal in your area if you have vacant lots that aren't selling, so I'd only consider the additional acreage minimally (maybe $10-$15k?)
Per Zillow (which take that for what it is), home prices in the area the house is in has increased 1.5-2% over the past year.
Also, the fact that there have been 20 showings and no offers tells me it is overpriced, as well.
Pom, would you go 10-15k under current price or what REA is trying to get them to drop it to? He said he wanted to drop it 10k just to entice offers so that makes me think he thinks the offers will be under that.
FWIW, with Redfin, the Redfin estimate was way off on our new house, $30k under appraisal and it was an estate house too, so not new, although it did not need cosmetic or structure work. That said with the amount of updating you say the house needs, I'd probably come in $20k under the current list expecting them to counter. I still say ask the REA to provide comps to prove the list price. They will have to do so to meet bank appraisal, unless they are hoping for a cash offer.
If you're going to purchase through the rea, ask her for comps. She should be able to hand you the market analysis that she completed for the sellers. I don't trust any re website estimates because they have no idea where neighborhoods begin and end. In a rural area like I live they're downright laughable.
Can you look at the tax assessor website for the address in your county? I think our's breaks out the price of the land from the structure. It probably isn't exact, as it is for the price that it is assessed for taxes - not the selling appraisal - but it should give you a ball park proportion to the price and you can calculate from there.
juliette21 and cubed , am I missing something? I logged in to Redfin and I can't find an estimate. I see all the facts...but no estimate.
It's right under the list price, at the top. Underneath the # of bedrooms and bathrooms, but in smaller print.
ETA: If you scroll down the page there's a section after the Property Details and Redfin Agent for your area that says Redfin Estimate and shows you the comparables on how they got the price. My appraiser used some of the exact same comps.
juliette21 and cubed , am I missing something? I logged in to Redfin and I can't find an estimate. I see all the facts...but no estimate.
It's right under the list price, at the top. Underneath the # of bedrooms and bathrooms, but in smaller print.
ETA: If you scroll down the page there's a section after the Property Details and Redfin Agent for your area that says Redfin Estimate and shows you the comparables on how they got the price. My appraiser used some of the exact same comps.
Damn. It doesn't show anything. It goes from Property Detail to Property History. It also says there aren't Redfin agents in the area...not sure if that is why there isn't anything listed?
It's right under the list price, at the top. Underneath the # of bedrooms and bathrooms, but in smaller print.
ETA: If you scroll down the page there's a section after the Property Details and Redfin Agent for your area that says Redfin Estimate and shows you the comparables on how they got the price. My appraiser used some of the exact same comps.
Damn. It doesn't show anything. It goes from Property Detail to Property History. It also says there aren't Redfin agents in the area...not sure if that is why there isn't anything listed?
I'm sure that's it. Redfin is very active in my area, some sellers list with them exclusively. So that's probably why I got such an accurate estimate. Sorry this didn't work out for you.
Damn. It doesn't show anything. It goes from Property Detail to Property History. It also says there aren't Redfin agents in the area...not sure if that is why there isn't anything listed?
I'm sure that's it. Redfin is very active in my area, some sellers list with them exclusively. So that's probably why I got such an accurate estimate. Sorry this didn't work out for you.
Thanks for the recommendation! It is helpful, at least, just to see what has sold in the recent history.
Post by carrierroe on Apr 28, 2016 12:25:05 GMT -5
And this is why you don't allow REA to double dip. They really are not there to work in your best interest.
Here's an angle: You offer the $10k plus reducing x% for the standard co-op since there isn't another REA involved. It's going to be hard to find comps. It sounds like you have a good feeling for a fair price so I'd go with that. Good luck!