What goes into determining an asking price for a house?


What goes into determining an asking price for a house?
By Scott Rogers • August 7, 2011
I was in Virginia Beach for a few days last week, and the house where we stayed (pictured above) is currently listed for sale. The price (near $1M) seemed high, but it is a almost-beachfront property, and I don't really know much about the Virginia Beach real estate market. In talking with the neighbors, however, we were told that the asking price really was too high, and that it was a result of what is owed on the property. The scenario above is not unusual -- plenty of homes on the market today are priced relative to how much the seller owes the bank, instead of based on market realities. Closer to home, in conversation two weeks ago with a buyer client, he asked "so why is that house priced so high?" I responded with "because they wanted to price it that high." Indeed, a home seller can price their home (if their Realtor is willing) however high (or low) they want to --- which means that the asking prices of homes are not always logical. Don't read too much into the asking price of a house -- it could be extraordinarily high, or the deal of the decade. Talk to your Realtor about the recent sales prices of comparable homes to ground yourself in current market realities. Receive Updates by Email Recent Articles: There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell Consider The Cost Of Your Planned Renovations When Planning Your Offer
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 21, 2024 (unless otherwise noted).
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