DragonFaerie Posted June 29, 2013 Share Posted June 29, 2013 Ugh. Our street is pretty small, fewer than 15 houses on it. As such, it is pretty rare for one to be listed for sale. Well, a few days ago, one house was put on the market. It has been vacant for a little while (don't know why). This house would be a comp to my house, though it is 20 years older, not updated, and on a slightly smaller lot. Size-wise, number of bedrooms, baths, basement etc., it's very comparable. So, when it was listed, I naturally looked it up. The asking price is $100K less than the appraised value of my house! Ugh! I'm not planning on selling any time soon, but I will want to eventually, and if that house sells for so little, it's going to affect the value of my house for years! Double ugh!! Quote Link to comment Share on other sites More sharing options...
gardenmom5 Posted June 29, 2013 Share Posted June 29, 2013 I'm not planning on selling any time soon, but I will want to eventually, and if that house sells for so little, it's going to affect the value of my house for years! Double ugh!! you're not planning on selling soon. comps are only of value within the previous six months - and then they are tossed because the sales were too far in the past. markets change. finishes in a house vary - even if the floor plan is exactly the same finishes can be dramatically different and make a big difference is market value. if that house needs work because it has been sitting empty - that can also be reflected in its price. any apprasier worth their salt will use three different comps anyway. Quote Link to comment Share on other sites More sharing options...
DragonFaerie Posted June 29, 2013 Author Share Posted June 29, 2013 you're not planning on selling soon. comps are only of value within the previous six months - and then they are tossed because the sales were too far in the past. markets change. finishes in a house vary - even if the floor plan is exactly the same finishes can be dramatically different. any apprasier worth their salt will use three different comps anyway. Very true, though they have to consider the selling prices of all three comps in their calculations. In our area, we can use older comps because we are "rural." When my appraisal was done, all three comps were sales within the past year. Appraisers can also go further away to find comps if need be, too. From the pictures, the finishes in that house do not compare to mine. Hopefully it will sell fast so that it can "age out" and be gone. :-D Quote Link to comment Share on other sites More sharing options...
merry gardens Posted June 29, 2013 Share Posted June 29, 2013 Don't worry about it. :) Do you know that house's appraised value for taxes? With less property, the county tax assessor might have already appraised that house for a lot less than yours. When you go to sell, a house twenty years older and on a smaller lot might not be used as a comparison against yours. And by starting with a lower asking price, they may end up selling it soon and getting a better price than they'd get if they'd asked for lots more money to start and then eventually settled for a low-ball offer after it sat on the housing market unsold for a long time. Plus if they are asking less money, the people who buy it might think they are getting a bargain and end up with more money to fix it up, which will make your neighborhood look nice. An upkept vacant house might do more to hurt your property's value than one that's sold quickly and cheaply to people who fix it up. Quote Link to comment Share on other sites More sharing options...
lmrich Posted June 29, 2013 Share Posted June 29, 2013 It might need a ton of repairs. Hopefully it sells quickly, new owners fix it up and flip it for more than 100,000! Quote Link to comment Share on other sites More sharing options...
Arcadia Posted June 30, 2013 Share Posted June 30, 2013 The asking price is $100K less than the appraised value of my house! Some listing ask for lower because the house is a short sale but not stated in the listing. Some ask for lower because seller wants a cash sale and the seller wants to sell fast. Quote Link to comment Share on other sites More sharing options...
Scarlett Posted June 30, 2013 Share Posted June 30, 2013 It's happened to me when I was trying to sell my marital home after the divorce. Xh was already trying to steal the house from me....I was able to sow that the house had sat empty for years and the owner basically dumped it. I ended up getting a full price top,dollar for our house which xh had to match since he wanted the house so bad. Quote Link to comment Share on other sites More sharing options...
happypamama Posted June 30, 2013 Share Posted June 30, 2013 Yep, they may just want to sell quickly, so don't worry too much. When we sold our last house (at the peak of the market, right before the crash), the house next door was also for sale. Exactly same layout/house size and same lot size -- basically, identical houses (the whole neighborhood was cookie cutter houses of only about three floor plans). But they had chosen to go with some really high-end upgrades and interesting (very bold) choices when they remodeled (we'd been in it before they remodeled, so we knew that the online pics reflected some serious changes), and we chose to go a bit more moderately and neutrally with our updates. We also wanted to get ours sold quickly, even if that meant foregoing exact top dollar, so our asking price was quite a bit lower than theirs. In the end, I don't remember how long theirs took to sell, but it was a lot longer than ours (which had three full-price offers in nine days, and we still ended up selling it for a lot more than we paid for it). So it could just be that the sellers want to sell it quickly. Quote Link to comment Share on other sites More sharing options...
DragonFaerie Posted June 30, 2013 Author Share Posted June 30, 2013 Good points, all. It just scares me to think how much value my house has lost in the last few years. Quote Link to comment Share on other sites More sharing options...
KungFuPanda Posted June 30, 2013 Share Posted June 30, 2013 It might need a ton of repairs. Hopefully it sells quickly, new owners fix it up and flip it for more than 100,000! This happened on my street. A house was undersold, then flipped within two months for more than I thought they could get out of it. Quote Link to comment Share on other sites More sharing options...
LisaKinVA Posted June 30, 2013 Share Posted June 30, 2013 A house sits empty on our street. It's been empty since last October. It's a short-sale, and priced about $100k under market. There is nothing wrong with the house...except that it's a short-sale. Two nearly identical houses have sold on our street for over $100k more (granted, they are new...), and 4 others in the neighborhood have also sold. In this case, it's a military move (gov't relocation package), and whoever is handling it is doing a really, really poor job. I have this strange feeling, that even as a short sale they might do better marketing the house closer to market value (that much UNDER market, and people wonder what's wrong...or there just aren't that many people in that price range who want acreage...so many variables). Anyhow, it shouldn't really play into your housing situation, unless you are wanting to refinance or move. The short sale shouldn't affect us much, either (too many recently solds in my neighborhood to compare to...and they just keep coming!) Quote Link to comment Share on other sites More sharing options...
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