 Posted 3/20/2007 8:24:28 AM
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Can anyone out there provide some advice on this subject? I showed my house recently to an interested buyer, and when talking to this person, she asked about the neighborhood and the other expected questions. However, she then threw me a curve and asked how much I purchased the house for when I bought it. It was completely unexpected and didn't know how to answer it. I replied with how much I actually financed the home for (which was the higher of the two numbers), but still can someone give me advice on how to reply in the future?
This person seemed very interested in the house so I didn't want to dispel that by avoiding the question, but obviously the point was to determine how much I marked the price up. My house is priced well below appraisal and fairly priced with competing houses in the subdivision. I never really thought that was something the buyer has a right to know, but at the same time I didn't want to turn away a potential sale.
The market is pretty slow where I'm located, and I'm afraid I might get a "low-ball" offer knowing what I paid for it. I'm at a position where I need to sell the house, but at the same time I don't want to just give it away. Anyway, any thoughts or suggestions would be appreciated.
Thanks
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Posted 3/20/2007 10:54:10 AM
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Hi Matthew,
You didn't say how long ago you bought your home, but it really doesn't matter how much you paid for it. When you purchased it, you paid 'market value' and you currently have it priced at 'market value'. That's all the buyer really needs to know. The value of your home is what buyers today are willing to pay for it.
If you do get a 'low ball' offer, you can always counter, or simply turn it down. Some people think they can low-ball an offer because of today's market. By countering, you're letting the buyer know that you're interested but that the offer price is way off. And, you don't have to split the difference when you counter. You can, if you choose, reduce the price by a small percentage and see what happens.
Good luck.
FSBO Guru
Owners.com
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Posted 3/28/2007 6:14:57 PM
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Matthew,
I'm in the same boat as you are with pricing strategies. However, do remember that what you paid for your house is a matter of public record and therefore, don't try to be evasive and further, never lie! Anyone can go to your local courthouse (or possibly even online) and see what you paid. If your house sold through the MLS to you, the Realtors will have a record of when it sold, how it sold (Realtor to Realtor, Realtor to unrepresented buyer, etc.), and how much it sold for. Also, I've found that since my house was originally priced $7,000 higher than what I ended up paying for it, a lot of buyers are hoping that I will drop my price from its original listed price as well.
Good luck and hang in there! The market will pick up very soon (or at least that's what I'll keep telling myself every night as I try to sleep)!!!
Jessica
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Posted 5/21/2007 9:06:27 PM
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Good question! I think the proper answer here would be I paid market value of $xxx,xxx back in xxxx. Since then the neighborhood has seen an increase of value of xx% over the past xx years. Also I've added xxx square feet to the house, installed a new fence, updated the kitchen, etc that has added value back to the property.
Of course your details will need adjusted for your situation. But in a nutshell, you tell them what you paid and how long ago you paid it and why you are asking more. Usually if a buyer identifies you've done something special with the property they will no longer see it as you trying to "get rich" on them.
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Posted 2/18/2008 8:26:30 PM
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| Anyone can go to www.zillow.com to see what the purchase price was and when (unfortunately for all of us sellers!)
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Posted 5/4/2008 2:49:43 PM
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I have not had a good experience with Zillow. They had the information on my house completely inaccurate. I don't know where they get their information, but they had the original square feet of the house very off from what the builder had, only had it as a one-story instead of two, and had about two fewer rooms than it originally had, which greatly affected the "value" it was assessed. I have since updated the information on Zillow and it's "value" is close now to what I have it listed for, but I totally believe that Zillow is only about "the numbers" and is not an accurate equivilant of what a home should be valued or priced at. I had much more success talking with Realtors in the area before listing my home FSBO to know what type of market we are in and being able price it that way. Just my little thought on Zillow!  Oh yes, and the price I purchased it for was also inaccurate!
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Posted 9/4/2008 9:31:41 AM
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| do not lie. if you know the exact # which most should, provide it. it's public record, sites like zillow.com post these #s+taxes, sometimes the price is incorrect with new builds or homes held by the owners for extensive years, but usually on target. either case, your buyer can ask the township for this information, ask their realtor, if they have one, to pull up historical data on your house, so be honest if they find you lie about this, what else are you lying about regarding your home? you do not have to justify your current price, market trends dictate this, comps&your upkeep of the home. also do not give personal finance details such as amount you have left on the mortgage, what you financed for, your mortgage amount per mo. (that is not their business and could be a scam).
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