Determining An Offering Price on a Property in a Neighborhood


Determining An Offering Price on a Property in a Neighborhood
By Scott Rogers • January 16, 2018
How does one determine an offering price in a neighborhood? Start 5% below asking price? Start at the tax assessed value? Start at the price the seller paid, adjusted per market changes since that time? Start $1K lower than the list price for every day it's been on the market? Start at full price if it's a new listing and you think it will sell quickly? Many or all of these strategies are likely to lead you astray. In theory -- you should be willing to pay approximately the same price as other buyers have paid for approximately similar homes in the recent past. For example.... Buyer A paid $250K for a 3 BR, 2 BA, 1800 SF, circa 2000 home Buyer B paid $255K for a 3 BR, 2 BA, 1850 SF, circa 2001 home Buyer C paid $245K for a 3 BR, 2 BA, 1750 SF, circa 1998 home When you then are considering a new listing of a 3 BR, 2 BA, 1800 SF, circa 2000 home -- it would seem reasonable to think that you'd likely pay between $245K and $255K. Of course, there are a variety of other extenuating factors that can affect this pricing: Garage vs. no garage Basement vs. no basement Updates vs. no updates All SF above grade vs. some SF in the basement Level lot with large yard vs. steep lot with small yard So -- how does one best research what homes are selling, and at what prices? I'll remind you of -- HarrisonburgNeighborhoods.com. On this handy new website, among other things, you can find a three year history of the sales prices in each of 34 neighborhoods in and around Harrisonburg. I hope that HarrisonburgNeighborhoods.com continues to serve as a helpful resource to you as you research home values, monitor for new listings, and more. Don't forget -- you can sign up to receive email alerts of all new listings and recent sales in any of the 34 neighborhoods! 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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