Valuation too low - Page 3
Page 3 of 3 FirstFirst 123
Results 21 to 28 of 28

Thread: Valuation too low

  1. #21
    Senior Member
    Join Date
    Aug 2013
    Posts
    1,925
    Quote Originally Posted by Dmoney View Post
    ... Unless you have signed a contract saying otherwise, there is nothing that forces you to sell just because an offer comes in at your asking price...
    Agreed. What I had in mind upthread was the instance where you have begun negotiations by countering to an initial offer. I believe if the buyer accepts your counter offer with no conditions, you are bound to accept.
    If you ignore an initial offer, even if it is at list without conditions you are merely flakey. If you are working with a realtor (it appears that the OP is not), they may have some recourse.
    This is OMO, I am far from an expert.


  2. #22
    Senior Member
    Join Date
    May 2009
    Location
    Ottawa
    Posts
    2,605
    Real estate is only "worth" what people are willing to pay for it. RE agent no doubt valued your house based on the reduced square footage. To you, this reduction was worth it for the aesthetics. To most potential buyers it is wasted or lost space. (The current popular trend for "grand" 2-story halls is a waste of what could be usable 2nd floor space to more practical people.). You made alterations which pleased you, but which may not have been a wise investment decision from the point of resale value. Unless you are lucky enough to find a buyer who has the same tastes as you, live with it.

  3. #23
    Senior Member
    Join Date
    Oct 2016
    Posts
    221
    Things have changed a lot in the past few months. And a house merely being offer for 15% more down the street doesn't mean anything. Only recent transactions between arms-length transactants do.

  4. Remove Advertisements
    CanadianMoneyForum.com
    Advertisements
     

  5. #24
    Member
    Join Date
    Nov 2014
    Posts
    57
    Quote Originally Posted by markomark View Post
    The issue is that this is a custom home, i took out part of the ceiling on the 2nd floor which makes the actually sq foot low hence the low valuation. I think that if someone likes this architectural feature they need to pay for it as if it was usable sq. footage; it shouldn't be like a defect. Besides, for a couple the space is perfect. So that is my problem is that i am cutting my nose for the many unique features that someone should be paying more for not less. That's why i think there might be a bidding war because when you have something that nobody else does people pay more. It is not my fault valuations are based on sq footage not cubic square feet.
    On the contrary, you have probably built something that a small portion of the market will be interested in, especially if its more suited for just a couple. You need to appeal to the masses when doing renovations if it is for resale purposes. If it is in your home and you're going to enjoy it for years and years that's a different story.

    You have probably narrowed your target market making it a tougher sale.

    I am by no means sticking up for realtors as I don't think highly of some of their business practices but, they aren't always full of bs.

    As it was said prior, a big downfall to sellers selling comfree is being completely biased to their own house and demanding it gets more more more when it isn't always the case.

  6. #25
    Junior Member
    Join Date
    Jun 2017
    Posts
    6
    It's a 1-1/2 story bungalow so i would think a couple is the main buyer for such a size of home. It so modern like what you would see in a magazine, people spend a lot of money to build custom homes with high ceiling, finished beams, sky lights etc. why shouldn't i get top dollar for it? I surly shouldn't lose money because of it, that's crazy. There is plenty of space for a couple. It shows like a new home.

    Already the neigh offer a low ball and the first showing they are sending a offer today. Tells me it is too low and it is very appealing to people in a sea of country style houses. This house can attract people who won't normally want to live in this town. It is not in the GTA but close so i think it is still increasing even if it is declining in the GTA, the housing prices are a fraction.

    Funny about accepting the first offer the guy down the street was just telling me to never accept the first offer

    Needless to say i am thoroughly confused because i think i am losing 10-20k with my low asking price.
    Last edited by markomark; 2017-06-19 at 07:54 AM.

  7. #26
    Senior Member
    Join Date
    Jun 2009
    Location
    Okanagan Valley
    Posts
    3,798
    Quote Originally Posted by markomark View Post
    Needless to say i am thoroughly confused because i think i am losing 10-20k with my low asking price.
    I don't see a need to be confused. How long has the listing been active? You won't know what the market is until you get your first offer. Subject to the terms of your listing agreement, you can always say no. In a good market with a market priced house, it would not be unusual to get an offer in the first week. If it was 5% or so underpriced, it would likely have had an offer in the first few days.

    One other point to consider. Unless it is an overheated market, you should also be aware that 'for sale by vendor' which is essentially what comfree is, a cross section of potential buyers could stay away. I always used to avoid 'for sale by vendor' properties as a matter of principle when I was house shopping. My belief was that the vendor was looking to squeeze every last penny out of the property. Not that I fault anyone from doing that, but I had no desire to negotiate under those conditions when there were alternative properties to consider.

  8. #27
    Member
    Join Date
    Nov 2014
    Posts
    57
    Quote Originally Posted by markomark View Post
    It's a 1-1/2 story bungalow so i would think a couple is the main buyer for such a size of home. It so modern like what you would see in a magazine, people spend a lot of money to build custom homes with high ceiling, finished beams, sky lights etc. why shouldn't i get top dollar for it? I surly shouldn't lose money because of it, that's crazy. There is plenty of space for a couple. It shows like a new home.

    Already the neigh offer a low ball and the first showing they are sending a offer today. Tells me it is too low and it is very appealing to people in a sea of country style houses. This house can attract people who won't normally want to live in this town. It is not in the GTA but close so i think it is still increasing even if it is declining in the GTA, the housing prices are a fraction.

    Funny about accepting the first offer the guy down the street was just telling me to never accept the first offer

    Needless to say i am thoroughly confused because i think i am losing 10-20k with my low asking price.
    I don't think it is abnormal, or a sign that you are priced too low, because you are getting offers after people walk through once, especially in this market.

    That being said, if you priced it 10-20k higher it might not have received those offers or showings to begin with. You might be at market value. The market being what people are willing to pay for that particular house in that particular area.

    Don't get greedy thinking you could get more, that has no end. If you listed for your 10k-20k more and still had whatever action you are speaking of, does it mean it should have been even more than that?

    The market for your house will dictate what kind of price it will fetch. It just may take more time.

  9. #28
    Senior Member
    Join Date
    Feb 2014
    Location
    Edmonton, AB
    Posts
    180
    Quote Originally Posted by markomark View Post
    why shouldn't i get top dollar for it? I surly shouldn't lose money because of it, that's crazy.
    If possible to remove yourself from the scenario imagine reading this in someone else's story. As others have noted, market value is market value despite your beliefs. No one is entitled to profit from renovations, and certainly not guaranteed to. The market is not what it was a month ago, or a year ago, and renovations don't mean squat unless the right person comes in. Many want to do their own renos, and prefer that, just like paint colours and furnishings. Best of luck with the sale, but I'd be appreciative of the offers that are coming in and be happy you're getting traffic and interest. You might never see a better price, the media isn't helping with stories of broken contracts and rates going up while prices fall month over month in the area.


Page 3 of 3 FirstFirst 123

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •