Cleveland OH Real Estate - How Much Can I Get That Home For?

By
Real Estate Agent with Howard Hanna Real Estate Services

Cleveland OH Real Estate - How Much Can I Get That Home For?

how much is that home worth?

When working with buyers, we are often asked this question and the simple answer is this: we don't know!

I realize it may sound shocking that someone who professes to be a real estate professional would openly admit to not having an answer about something related to real estate, but the answer is complicated.

The final purchase price of a home depends on many variables, the most important being the sellers motivation. However, until the negotiating process has been played out, there really is no way to determine what a seller will accept for their home. In many cases, even the seller doesn't know what they will accept until they have received an offer and crunched the numbers.

I realize that buyers want some level of certainty and would feel more comfortable knowing everything up front.  Sure, it would be great if the listing you saw on line read, " great home, priced at $199,999, but the sellers said their bottom line is really $170,000."  Unfortunately, it just doesn't work that way. However, we do have some thoughts on finding a home's value that may be helpful.

To begin, market statistics mean alot as they are based on cold hard facts, not opinions.  Here are statistics from home sales over the last 6 months in some popular Eastern suburbs here in Cleveland. The figures below show the relationship between average final sales price vs. average final list price:

Beachwood -              $278,911 / $299,338 = 93.18%

Moreland Hills -          $316,632 / $334,611 = 94.63% 

Pepper Pike -            $338,072 / $358,562  = 94.29%

Orange -                   $245,242 / $268,198  = 91.44%

Solon -                     $287,006 / $306,145  = 93.75%

Twinsburg -               $211,594 / $221,345  = 95.59%

 

Based on the figures above, a home can expect to sell for about 94% of the final list price. The challenge can be to determine whether or not a home is price competitively, where it will likely receive an offer, or if it is overpriced and due to be reduced at some point in the future.

We recommend that you educate yourself on the market by seeing a lot of homes in your price range and follow the status of these homes. At some point, you will have seen enough homes that you will be able to walk into a home and know if it is a good value. However, other buyers will recognize this too, so if you find a great home at a great price, don't delay for risk of losing it. 

If you are a buyer expecting to get a home for 20% off list price, it probably won't happen on a home that is the nicest in it's price range. However, if a given home appears grossly overpriced based on comparing it to others you have seen, there certainly may be more negotiation room here.

One thing to note is that some sellers know their home is overpriced but just don't want to lower it. They may be open and expecting to negotiate, so don't let a price keep you from trying to buy a home that you really love.

More important than determining "how much can I get that home for", is using statistics and market knowledge to determine "how much a given home is worth to you", because that is really the question that you should be focusing on and can be answered prior to beginning negotiations.

When all is said and done, learning the market is important and having a knowledgeable agent to guide you throught the process is critical to your home buying success.

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About The Authors:

This information is provided compliments of Amy and Dan Schuman, The Schuman Team Keller Williams Realty. The Schumans service both the East and West sides of Cleveland and have worked with numerous professional athletes, business owners, and executives who are relocating to Cleveland. They specialize in the Cleveland Ohio luxury home market and also enjoy working with first-time buyers as well.

If you are looking to buy or sell Cleveland real estate, including the surrounding suburbs, please contact the Schuman Team at 216-346-3235. 

SEE ALL CLEVELAND AREA HOMES FOR SALE BY CLICKING BELOW:

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 CHECK OUT THE SCHUMAN TEAM'S AWARD-WINNING WEBSITE

 

Cleveland OH real estate - How Much Can I Get That Home For? is the property of The Schuman Team and may not be duplicated or used without their written consent. ©Dec 2009    

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Re-Bloggged 2 times:

Re-Blogged By Re-Blogged At
  1. Dawn Maloney 12/15/2009 04:41 PM
  2. Donald Bradbury 12/16/2009 02:42 PM
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Topic:
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Groups:
Cleveland Ohio Real Estate
Cuyahoga County Ohio Real Estate
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Tags:
buying a home in cleveland
negotiating an offer

Comments 29 New Comment

Ambassador
1,516,895
Christine Donovan
Broker/Attorney 800-610-7253 DRE01267479 - Costa M
Donovan Blatt Realty

We don't know how much the buyer can get the home for, but we can take a fairly educated guess based on comparables and actives still on the market.

What they offer will depend upon their own motivations.

Of course when you throw in short sales and the banks, that's a whole new story.

December 17, 2009 11:18 PM
Rainer
27,283
Danielle Pierce
ADPR
Platinum Realty and Preservation

I definitely see a RE-BLOG in our future. LOL! I get asked that question all the time. My other favorite is: how much did the seller accept (when the property is still showing as under contract)! Great post!

December 18, 2009 09:35 AM
Rainmaker
295,831
Dan and Amy Schuman
Luxury Home Specialists
Howard Hanna Real Estate Services

Christine - Thank you for comments and yes, motivation is always key.

Danielle - Feel free to re-blog. It is a question that comes up quite a bit so it is good to be prepared for an answer.

December 18, 2009 04:25 PM
Ambassador
2,267,580
Patricia Kennedy
For Your Home in the Capital
Evers & Company Real Estate, Inc.

Dan and Amy, I always tell my buyers that there is only one way to get an answer to that one - write an offer.  And the important number is the price, in relation to area market values, not how much off the list price you are paying.  Getting a hugely overpriced place for 60% of the list price might cost you more than one at over a reasonable asking price that got bid up a wee bit. 

December 19, 2009 03:36 PM
Rainmaker
295,831
Dan and Amy Schuman
Luxury Home Specialists
Howard Hanna Real Estate Services

Pat - We agree wholeheartedly with you. Some buyers are just so afraid to take that step to write, especially the first timers. Thanks for stopping by.

December 19, 2009 05:24 PM
Rainmaker
295,831

Dan and Amy Schuman

Luxury Home Specialists
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Welcome to our Active Rain blog, a platform we use to communicate to buyers, sellers, and other real estate professionals. We cover topics relating to real estate but discuss other subjects as well, including our local area, Cleveland, Ohio. We want everyone reading to come away feeling that the time spent here was worthwhile. Thank you for visiting our blog. Clicky Web Analytics

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