Offer price vs updating needed
ellusionz
7 years ago
Featured Answer
Sort by:Oldest
Comments (18)
Related Discussions
make an offer now or wait for prices to come down more?
Comments (23)"It takes all kinds" Sorry I was having a little joke - I know perfectly well I'm pretty unusual for wanting to actually understand markets. Its just a kind of curiousity I have. "I want to pay fair market value, based upon the current market conditions." I don't know if you realize it, but you are agreeing with me in these words. We differ in that you seem to feel that comps will always provide a fair market value, whereas I think that when comps themselves have deviated from normal long term trends (like the trend where house prices just barely outperform inflation) that comps might not be providing as "fair" of a market value as it seems. Earlier I missed a good opportunity when you asked if I needed a price drop explained to me too by giving a flippant answer, but in reality I would want to understand that one too - I would assume the prior value was a bubble price, but when houses appreciate at less than the inflation rate its just as much of a puzzle as it is when they grow at more than the inflation rate. The inflation rate isn't necessarily the right rule of thumb - possibly an area has a perfectly rational rate of price growth of about 5%. But if prices start to go up at 10% for a couple years from nothing but excitement and easy lending standards, will comps really justify the high prices? My theory is that they do not, and that it is wiser to try to predict fair values by studying long term trends - which, depending on your set of definitions, is part of "current market conditions". When long term trends and comps are in agreement with each other, there's no harm done. When comps are way above (or below) long term trends, there's got to be a reason, and if I'm going to plunk down a lot of money I want to be satisfied that its a good reason that isn't going to adversely affect me. "Irregardless of inflation." Someone please tell me that the, ahem, word and sentence structure used here is a joke that I'm just not getting....See MoreThoughts on offer price
Comments (4)I'd look a little closer at the comps. Look at photos if you can (should be in MLS). See if you can see a pattern based on condition, buyer, amenities like basements, that sort of thing. Then offer based on the average of the nearest comps. If it was me, I'd line them up in a spreadsheet and approach them appraiser-like, but I'm a math geek. For example, if the 82/sf house was a foreclosure bought by an investor, and the next highest sold for 95/sf, with a cluster of 95-105/sf for the non-updated houses, then offer 95/sf. It won't likely be that clear-cut. There are a thousand reasons people buy or don't buy. But that should get you close....See More'with a little tlc this home....' vs 'needs updating'
Comments (11)I agree with badgergrrl. "TLC" means there are things that aren't working properly. Or flooring that is in great disrepair. ANd I would also throw in that the kitchens and baths are probably in need of something between super-scrubbing and dynamite. "Updating" means things work, but aren't current. I would think this means original kitchens and baths in a 1960s - 1990s home, and possibly wallpaper, panelling, vinyl flooring and carpet that needs to be removed. As far as plumbing and electrical go . . . it sounds like you're looking at homes more than 50 years old. In my area it is seldom mentioned in the listing that the electrical/plumbing needs to be updated, but it WILL be mentioned if it HAS been updated....See MoreOmega/Dynasty vs Barker Cabinets - same price and need to choose!
Comments (8)There would be no contest between unassembled and something of Dynasty's quality already assembled. Painting parts and pieces and then assembling them isn't the best idea. Someone besides an expert in cabinetry assembling the cabinets also is questionable quality control if you want to compare the two. It's apples and oranges. Sure, there might not be any issues, but if there are, you've got a lot more fingers pointing around at who caused the problem, with no one wanting to accept responsibility for the issue. Also, are you really sure you want to 100% accept the responsibility for knowing what clearances the cabinets need in order to function? What size oven cabinet you need? How to trim that cabinet to fit? I can do every one of Dynasty's cabinets that will show in the design with an extended side in order for it to be scribed to the waviness of the wall. I can also do an extended stile instead of a filler against a wall or tall cabinet so that it's more seamless. Do you understand what that brings to the design? And how little it actually costs to be able to do details like that that make all of the difference in appearance and function?...See Moreellusionz
7 years agolast modified: 7 years agopkpk23
7 years agoncrealestateguy
7 years agosteve_o
7 years agoUser
7 years agoellusionz
7 years agoUser
7 years agocpartist
7 years agoAnglophilia
7 years agoellusionz
7 years agosushipup1
7 years agoellusionz
7 years agolast modified: 7 years ago
Related Stories
INSIDE HOUZZInside Houzz: New Data Offer Insights on Landscaping Trends
Homeowners are looking to manage water and add more enjoyment to their landscapes, according to a new Houzz survey
Full StoryKITCHEN DESIGNKitchen Sinks: Granite Composite Offers Superior Durability
It beats out quartz composite for strength and scratch resistance. Could this kitchen sink material be right for you?
Full StoryKITCHEN DESIGNKitchen of the Week: Navy and Orange Offer Eclectic Chic in California
Daring color choices mixed with a newly opened layout and an artful backsplash make for personalized luxury in a San Francisco kitchen
Full StoryWINDOW TREATMENTSSmall Luxuries: Motorized Window Coverings Offer Benefits to All
Free yourself from the mess of cords and the bother of blind rods. Motorized blinds and drapes make managing natural light easy
Full StoryDECORATING GUIDESBig Shells Offer a Sea of Decorating Possibilities
Cull from these clamshell ideas for beautifully beachy takes on centerpieces, artwork and even sinks
Full StoryBEDROOMSRoom of the Day: Master Suite Offers a Place to Rest and Read
The reconfigured space gives a Kansas couple a bedroom suite with 2 bathrooms
Full StoryTASTEMAKERS'The Collected Home' Offers a Wealth of Design Tips
From planning to decorating, the father of 'new traditionalist' style dishes out scads of design suggestions you might never have considered
Full StoryKITCHEN DESIGNSmall Luxuries: Wine Refrigerators Offer Handy Storage
No more tossing whites in the freezer at the last minute. Get the facts on wine coolers so you can just chill before guests arrive
Full StoryKITCHEN COUNTERTOPSKitchen Counters: Quartzite Offers Strength and Beauty
Eye-catching patterns and a natural pedigree make durable quartzite a popular alternative to granite and marble
Full StoryBATHROOM DESIGNLight-Up Mirrors Offer Bright Design Solutions
If you're taking a dim view of a problem bathroom area, try the flash of design brilliance that is the electric mirror
Full Story
chispa